Tucker Blog

Thursday, December 26, 2013

MAP-21 Also Raises Broker Bond

Another change in MAP-21 increases the FMCSA’s required performance bond for freight brokers from $10,000 to $75,000, which is an amount equal to the bond required of NVOCCs and Ocean Freight Forwarders. The law also places some additional requirements around the structure of the bonding companies, in order to better protect the public from undercapitalized bonding companies. A lawsuit challenging the higher bond failed. To give the industry time to adapt, for the moment, there is no penalty (or teeth) for failing to raise your bond to $75,000. As information, Tucker has voluntarily carried a higher bond amount for years, and was compliant prior to the new law.