In implementing provisions laid out in the MAP-21 act, the U.S. Federal Motor Carrier Safety Administration has released guidance regarding an Oct. 1 deadline on the registration for brokerage companies and the filing of surety bonds.
Relevant parties must now register for broker status with the agency. The organization will still allow carriers to interline, but it must be done as a continuous movement either under the authority of the originating carrier or under its own authority. Brokers and forwarders must also obtain a $75,000 surety bond or trust fund agreement. If carriers do not obtain bonds by the deadline, they will receive a warning letter on Nov. 1 and will be subject to termination by early December.
Robert Voltmann, president and chief executive officer of the Transportation Intermediaries Association, said the decision levels the playing field, and he warned members to have the necessary details in place by Oct. 1.
“TIA applauds the agency for the release of this guidance and their leadership,” he said, “which will not only ensure a fairer marketplace for all licensed entities operating in the supply chain, but have a significant impact on combating fraud in the marketplace.”
The FMCSA’s guidance is available here. – Jon Ross
FMCSA releases guidance on surety bond deadline
