MAP 21 (The 2012 Highway Act) OUTLAWS CARRIERS FROM BROKERING

For years, many carriers were under the false impression that they could broker excess loads their own trucks couldn’t cover. That was illegal then, it is expressly illegal now. MAP-21 has cleared up the misunderstanding by explicitly outlawing the practice. In fact, carriers who continue the practice after the passing of MAP 21 may now be fined excessive amounts of money for each offense, and face the prospect of civil actions seeking millions of dollars. 

Effective October 2013, motor carriers who wish to broker excess loads, or any load, must (a) apply for and obtain a broker’s license; (b) maintain a $75,000 broker bond; and (c) inform the shipper of the carrier’s intent to broker the load rather than haul it on its own equipment, and obtain the shipper’s consent to do so; and (d) experts are also suggesting that many carrier insurers are unaware if a carrier is brokering. So since carrier risks and exposures differ greatly from those of a broker, shippers must also insist to see evidence that a carrier’s insurance covers its brokered loads risks. Carrier cargo does not cover freight that has been brokered by the carrier, unless the insurance certificate expressly states it does. For many carriers, that will require a business restructure, and new endorsements or policies.

We recommend you use a carrier as a carrier only. Leave the brokering to properly authorized, bonded, and insured brokers. Or, you may simply call Tucker.