Broker and Freight Forwarder Bond Requirements Begin Oct.1

The Federal Motor Carrier Safety Administration (FMCSA) is preparing for the implementation of the provisions of MAP-21, the "Moving Ahead for Progress in the 21st Century Act". MAP-21 directs the Agency to begin 29 new rule-makings within a 27-month period, which does not include current rule-makings underway. In addition, it requires FMCSA to implement 34 programmatic changes and produce 15 reports.

Included in the list of provisions is the bond increase from $10,000 to $75,000 for brokers and freight forwarders. Initially thought to take effect one year from the date the President signed the bill into law, on July 6, 2013. The FMCSA has now scheduled the effective date for October 1, 2013 - one year from the date of enactment of the law - giving brokers and freight forwarders an additional 90 days to implement the new bond requirements. Furthermore, this provision does not require a formal rule-making process and therefore will not be open for a public comment period. This provision will be included in the upcoming Unified Registration System (URS) 2 rule that will incorporate and implement all the new registration requirements, including new registration fee and registration requirements for brokers and freight forwarders.

Information regarding the new Broker and Freight Forwarder Bond Requirements obtained courtesy of the Transportation Intermediaries Association (TIA).