These additional requirements signal a positive change in the transportation industry.
Tulsa, OK (PRWEB) July 19, 2012
First, one of the bill’s major provisions raises the broker surety bond requirements from $10,000, where it stands currently, to $75,000 – the same cost as an NVOCC bond. “This provision will help eliminate many fraudulent and un-reputable brokers by making it more difficult to become a broker,” said Kyle Gholston, Vice President of Conexus. “Once enacted, it will strengthen the industry as a whole and potentially decrease fraudulent activity.” The increased bond requirement will go into effect one year from enactment, or sometime in the summer of 2013.
In addition to the higher surety bond requirements, motor carriers will now have to possess a brokerage authority in order to transfer a load to another carrier. “These additional requirements signal a positive change in the transportation industry,” said Gholston. “The changes will make it illegal for a carrier to re-broker freight without the proper authority and bond, resulting in greater accountability and increased peace of mind for shippers.”
For questions or more information regarding this new legislation, please contact Kyle Gholston at 918.200.0179.
Conexus, LLC, formerly Melton Logistics, LLC, is a non-asset based third-party logistics company serving the United States, Mexico and Canada with offices in Tulsa, Oklahoma and Laredo, Texas. The company offers truckload, less-than-truckload (LTL), temperature controlled, flatbed, over-dimensional, intermodal, expedited ground and air and specialized freight services as well as warehousing, inventory and distribution through its 30,000 square foot warehouse in Laredo, Texas. The company has been in business since 2003.