What Does The Increased Freight Broker Bond Mean For The Bulk Trucking Industry?

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BulkLoadsNow.com examines the effects the increase broker bond from $10,000 to $75,000 will play in moving hopper, dump, and other bulk freight.

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Many trucks could find themselves paying a higher percentage and this could lead to dishonesty with brokers who don’t tell trucks about these costs.

With the signing in of the new highway bill, Moving Ahead for Progress in the 21st Century Act, many changes to the transportation industry will go into effect. Of these, most are concerned with maintaining and improving our highway infrastructure and adding visibility to the industry from motor carriers, freight forwarders and brokers. One of the provisions, however, increases the broker bond from $10,000 to a staggering $75,000. The real question is not whether nor not it will affect the freight industry, but by how much?

Both the Owner-Operator Independent Drivers Association (OOIDA) and the Transportation Intermediaries Association (TIA) have been arguing for the bill’s signing. The provisions enacted will protect owner operators in several ways. It will provide protection from fraud simply by raising the bond to $75,000 and will increase speed and transparency between shippers, brokers and carriers. Carriers will also be affected by the new bill. They will be required to put themselves in the national registry, install logging devices in their vehicles and prove their training standards have been met.

“Brokers play a vital role in the truck freight industry”, says Jared Flinn, Operating Partner at BulkLoadsNow.com. “Many shippers rely on brokers to assist them in sourcing carriers and carriers equally rely on brokers to supply them with loads they might have never found.” Brokers make up between 30%-40% of loads posted and moved on BulkLoadsNow.com. While shippers and carriers see this as a positive change for the industry, many brokers have mixed reactions.

Some members on BulkLoadsNow.com suggest that the new changes won’t have a huge effect on current brokers, however. Art Pfluger states that, “[Current brokers] are already established and, like the rest of us, will absorb the cost.” He went on to state that many trucks could find themselves paying a higher percentage and this could lead to dishonesty with brokers who don’t tell trucks about these costs. Additionally, when asked about new brokers coming into the industry, Art suggested that most brokers come from well-established brokerages that move van, reefer and flatbed freight. Moving into the bulk territory, they typically have the backing of the larger company behind them.

About BulkLoadsNow.com
BulkLoadsNow.com is an online community of professionals in North American’s bulk freight industry. Our shipper members are transportation logistics managers of grain, fertilizer, aggregates, feed ingredients and all agriculture commodities. Our carrier members pull hopper bottoms, walking floors, end dump trailers, belt trailers, live floors, pneumatic and liquid tankers. We provide to our members the industry’s most innovative bulk freight solutions including an enhanced load board, database of all carriers in North America, instant communication tools, industry forums and news updates, and much more. Find out more at http://www.bulkloadsnow.com.

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