160:, it exists to primarily serve as an insurance policy for motor carriers , in the event that a freight broker fails to remit payment to a carrier when required to do so by a load contract. A motor carrier can "file" against a broker's surety bond if a broker fails to honor the payment terms of a contract. Prior to 2012 the minimum bond required by the FMCSA to obtain broker authority, was $ 10,000, although many brokers chose to obtain higher amounts.
22:
80:
237:(TIA), a major third-party logistics trade organization, has also advocated for the new FMCSA regulations through its lobbying arm TIAPAC as a way to protect motor carriers from both incompetent and unscrupulous brokers. TIA board member Ken Lund acknowledged that the new bond may be difficult for smaller brokers to pay, but defended it as "reasonably priced" and useful to prevent fraud.
119:, where they can post the job and find carriers that have transportation resources in the area. They can also get lower shipping prices by getting competing bids by different carriers. However, brokers and carriers are not always separate entities - a number of auto transport companies handle both brokerage and transport.
221:
The
Association of Independent Property Brokers & Agents (AIPBA), a property broker trade group that claims 1,400 members, has petitioned and lobbied against higher bond requirements when these have been proposed in the past, and has harshly criticized the new law. The founder & president of
111:
to be allowed to broker vehicles for customers. The individual or business that needs to move a car or other vehicle is the shipper; the shipper contacts a broker to have their vehicle shipped or transported. Once a broker is booked, the broker's job is to find a carrier, which is the individual or
211:
Tighter regulation of "interlining," the practice of freight carriers hiring other carriers to "perform all or part of the services the originating carrier is obliged" to provide. Now, carriers that contract all or part of the job to other carriers will need to procure separate broker authority from
225:
The
National Association for Minority Truckers (NAfMT) has also come out against the higher bond requirements. NAfMT CEO Kevin Reid called the $ 75,000 bond an "unreasonable barrier to entry for would-be entrepreneurs." He also spoke out against the new restrictions on owner-operators brokering out
229:
Other industry associations have been supportive of the law. The Owner-Operator
Independent Drivers Association (OOIDA), a group that represents independent trucking owner-operators, has been a key force behind the new regulations. While the final rules in MAP-21 fell short of the OOIDA's wishes,
139:
With the advent of the
Internet, the auto transport industry has seen an influx of new brokers, attracted by the low cost of starting a brokerage business online. While this encouraged greater competition and lower costs in the industry, government agencies have also seen a "dramatic increase in
131:
keeps statistics on cargo shipments, showing over $ 651 billion worth of motorized and other vehicles (including parts) moved by truck in 2007. Of that number, $ 452bn of cargo was moved via for-hire truck. Official statistics about the size of the secondary auto transport market, number of
176:
on July 6 of 2012, introduced a number of new regulations for auto transport brokers. The chief among them is raising the minimum broker bond from $ 10,000 to $ 75,000. The new provision goes in force on
October 1, 2013, and has applied to all existing brokers retroactively.
94:
that specializes in the shipping and transportation of vehicles. Most vehicles shipped in the U.S. are cars and trucks, but many brokers handle boats, RVs, motorcycles and other types of vehicles as well. Auto transport is classified as "specialized freight trucking" under
212:
the government. A transport company will also be required to notify its customers what role (carrier, forwarder or broker) it plays at each stage of the transport job, as well as which USDOT body regulates the activity.
208:
A 3-year relevant experience and certified training requirement to obtain a broker license, bringing auto shipping broker qualification requirements in line with the ocean shipping industry.
222:
AIPBA, James Lamb, has called the law a lobbyist-driven attempt to "eliminate small brokers from the market" and establish an oligopoly that charges customers more and pays carriers less.
107:
An auto transport broker is part of the personal vehicle freight business industry chain. In the U.S., these broker companies must have proper licensing and authority from the
328:
169:
32:
331:. U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) Registration & Assistance: Number/Operating Authority. Archived from
96:
281:
149:
128:
180:
The BMC-84 Freight Broker Bond is paid for on an annual basis. The freight broker bond cost is figured as a percentage of the bond amount depending on
621:
405:
380:
205:
A license status review by the FMCSA every five years; the FMCSA also has the power to revoke a broker's license in case of unethical practices.
441:
148:
Auto transport brokers in the USA are subject to government licensing. The candidate must obtain an
Operating Authority number from the
66:
647:
332:
234:
152:
by filling out a form on the FMCSA website. There is a small application processing fee. Brokers are also required to obtain a
516:
230:
Todd
Spencer, executive vice president of the organization, praised them as a "win-win" for truckers and legitimate brokers.
710:
720:
442:"MAP-21: New Surface Transportation Legislation Overcomes Political Obstacles to Bring Law Closer to Industry Realities"
705:
303:
48:
491:
44:
595:
674:
715:
625:
354:
412:
543:
251:
157:
133:
226:
excess freight. The NAfMT has joined efforts by AIPBA to repeal the stricter surety requirements.
568:
445:
261:
246:
140:
complaints against auto transporters and auto transport brokers" due to
Internet fraud.
699:
651:
520:
185:
173:
91:
79:
519:. Association of Independent Property Brokers & Agents (AIPBA). Archived from
153:
112:
company that actually employs drivers and operates the car transport equipment.
360:. U.S. Department of Transportation Federal Motor Carrier Safety Administration
116:
136:
vehicles on the road and number of vehicles shipped aren't kept by the DOT.
381:"Congress Approves a $ 127 Billion Transportation and Student Loan Package"
256:
411:. Federal Motor Carrier Safety Administration (FMCSA). Archived from
571:. National Association for Minority Truckers (NAfMT). Archived from
492:"Association of Independent Property Brokers & Agents Archives"
468:
108:
15:
406:"MAP-21 Broker and Freight Forwarder Questions & Answers"
31:
deal primarily with the United States and do not represent a
650:. Transportation Intermediaries Association. Archived from
309:. The Federal Motor Carrier Safety Administration (FMCSA)
115:
Brokers are employed because they have access to freight
40:
572:
355:"FORM OP-1 APPLICATION FOR MOTOR PROPERTY CARRIER"
675:"Ken Lund: 75K broker bond no 'large broker' move"
304:"Consumer Advisory about Automobile Transporters"
170:Moving Ahead for Progress in the 21st Century Act
596:"Broker bond increase challenge gets new backer"
435:
433:
29:The examples and perspective in this article
8:
150:Federal Motor Carrier Safety Administration
235:Transportation Intermediaries Association
67:Learn how and when to remove this message
78:
273:
469:"Intermodal Moves Make for Messy Law"
284:. Bureau of Transportation Statistics
282:"2007 Commodity Flow Survey, Table 7"
7:
624:. Steal Head Finance. Archived from
544:"Small brokers reload on $ 75K bond"
622:"Higher Bond Enrages Small Brokers"
188:, age/status of any Public Records)
379:WEISMAN, JONATHAN (29 June 2012).
14:
594:Dills, Todd (26 February 2013).
329:"FMCSA online registration page"
20:
444:. Forwarder Law. Archived from
129:US Department of Transportation
673:Dills, Todd (2 October 2012).
542:Dills, Todd (23 August 2013).
1:
471:. Commercial Carrier Journal
43:, discuss the issue on the
737:
490:Archives (15 June 2014).
517:"OPEN LETTER TO OOIDA"
144:Licensing requirements
83:
569:"NAfMT Official Site"
201:Other rules include:
184:Credit of ownership (
88:auto transport broker
82:
711:Business occupations
448:on 24 September 2015
49:create a new article
41:improve this article
721:Automotive industry
654:on December 1, 2013
648:"TIA Official Site"
575:on November 9, 2013
523:on 28 February 2014
418:on October 30, 2013
335:on December 9, 2013
252:Automotive industry
158:Freight Broker Bond
706:Transport by cargo
385:The New York Times
217:Industry Reactions
84:
628:on August 7, 2013
262:Automotive safety
191:Years in Business
77:
76:
69:
51:, as appropriate.
728:
690:
689:
687:
685:
670:
664:
663:
661:
659:
644:
638:
637:
635:
633:
617:
611:
610:
608:
606:
591:
585:
584:
582:
580:
565:
559:
558:
556:
554:
539:
533:
532:
530:
528:
513:
507:
506:
504:
502:
487:
481:
480:
478:
476:
464:
458:
457:
455:
453:
437:
428:
427:
425:
423:
417:
410:
402:
396:
395:
393:
391:
376:
370:
369:
367:
365:
359:
351:
345:
344:
342:
340:
325:
319:
318:
316:
314:
308:
300:
294:
293:
291:
289:
278:
164:2012 regulations
132:commercial-size
72:
65:
61:
58:
52:
24:
23:
16:
736:
735:
731:
730:
729:
727:
726:
725:
696:
695:
694:
693:
683:
681:
672:
671:
667:
657:
655:
646:
645:
641:
631:
629:
619:
618:
614:
604:
602:
593:
592:
588:
578:
576:
567:
566:
562:
552:
550:
541:
540:
536:
526:
524:
515:
514:
510:
500:
498:
496:Ask The Trucker
489:
488:
484:
474:
472:
467:Seaton, Henry.
466:
465:
461:
451:
449:
439:
438:
431:
421:
419:
415:
408:
404:
403:
399:
389:
387:
378:
377:
373:
363:
361:
357:
353:
352:
348:
338:
336:
327:
326:
322:
312:
310:
306:
302:
301:
297:
287:
285:
280:
279:
275:
270:
247:Shipping agency
243:
219:
174:President Obama
166:
146:
125:
105:
73:
62:
56:
53:
38:
25:
21:
12:
11:
5:
734:
732:
724:
723:
718:
716:Road transport
713:
708:
698:
697:
692:
691:
665:
639:
620:Miller, Eric.
612:
586:
560:
534:
508:
482:
459:
440:Block, Steve.
429:
397:
371:
346:
320:
295:
272:
271:
269:
266:
265:
264:
259:
254:
249:
242:
239:
218:
215:
214:
213:
209:
206:
199:
198:
195:
192:
189:
165:
162:
145:
142:
124:
121:
104:
101:
75:
74:
35:of the subject
33:worldwide view
28:
26:
19:
13:
10:
9:
6:
4:
3:
2:
733:
722:
719:
717:
714:
712:
709:
707:
704:
703:
701:
680:
676:
669:
666:
653:
649:
643:
640:
627:
623:
616:
613:
601:
597:
590:
587:
574:
570:
564:
561:
549:
545:
538:
535:
522:
518:
512:
509:
497:
493:
486:
483:
470:
463:
460:
447:
443:
436:
434:
430:
414:
407:
401:
398:
386:
382:
375:
372:
356:
350:
347:
334:
330:
324:
321:
305:
299:
296:
283:
277:
274:
267:
263:
260:
258:
255:
253:
250:
248:
245:
244:
240:
238:
236:
231:
227:
223:
216:
210:
207:
204:
203:
202:
196:
193:
190:
187:
183:
182:
181:
178:
175:
171:
163:
161:
159:
156:. Known as a
155:
151:
143:
141:
137:
135:
130:
122:
120:
118:
113:
110:
102:
100:
99:code 484230.
98:
93:
90:is a type of
89:
81:
71:
68:
60:
50:
46:
42:
36:
34:
27:
18:
17:
682:. Retrieved
678:
668:
656:. Retrieved
652:the original
642:
630:. Retrieved
626:the original
615:
603:. Retrieved
599:
589:
577:. Retrieved
573:the original
563:
551:. Retrieved
547:
537:
525:. Retrieved
521:the original
511:
499:. Retrieved
495:
485:
473:. Retrieved
462:
450:. Retrieved
446:the original
420:. Retrieved
413:the original
400:
388:. Retrieved
384:
374:
362:. Retrieved
349:
339:December 11,
337:. Retrieved
333:the original
323:
311:. Retrieved
298:
286:. Retrieved
276:
232:
228:
224:
220:
200:
186:credit score
179:
172:, signed by
167:
147:
138:
126:
114:
106:
92:cargo broker
87:
85:
63:
54:
30:
684:12 December
658:11 December
632:11 December
605:11 December
579:12 December
553:11 December
527:11 December
501:24 November
475:11 December
452:11 December
422:11 December
390:11 December
364:11 December
313:11 December
134:car carrier
117:load boards
700:Categories
268:References
197:Experience
194:Financials
123:Statistics
679:Overdrive
600:OverDrive
548:OverDrive
57:June 2015
45:talk page
257:Autorack
241:See also
103:Overview
39:You may
416:(PDF)
409:(PDF)
358:(PDF)
307:(PDF)
288:8 May
109:FMCSA
97:NAICS
47:, or
686:2013
660:2013
634:2013
607:2013
581:2013
555:2013
529:2013
503:2019
477:2013
454:2013
424:2013
392:2013
366:2013
341:2013
315:2013
290:2018
233:The
168:The
154:bond
127:The
86:An
702::
677:.
598:.
546:.
494:.
432:^
383:.
688:.
662:.
636:.
609:.
583:.
557:.
531:.
505:.
479:.
456:.
426:.
394:.
368:.
343:.
317:.
292:.
70:)
64:(
59:)
55:(
37:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
