New MAP-21 Law Threatens to
Revoke Many Freight Broker’s Licenses
Update (12/11/13): As of today, the FMCS has revoked over 3,500 broker licenses, representing over 30% of all licensees.
As we have written about previously here, the new MAP-21 law poses a serious threat to many smaller freight brokers throughout the country. While last ditch efforts are underway to prevent it’s implementation, it appears that the Federal Motor Carrier Safety Administration (FMCSA) is set to begin revoking broker licenses on December 1st, 2013. The impetus behind these actions is the previously obscure MAP-21 legislation signed into law by the President which mandates an increase in broker bonding from $10,000 to $75,000.
Many smaller brokerages and sole proprietors simply don’t have the financial wherewithal to meet these new standards. The result? They operate illegally and without the proper license, they sell their business, or they shut down. This isn’t just fear mongering, it has been widely reported in industry circles.
Don’t wait until it is too late. Ask your current broker if they are in compliance with the new $75,000 broker bond law. If the answer is “No”, you need to seriously examine the relationship.
Full disclosure: Air & Surface Logistics is a licensed truck broker (MC#469383) and is in compliance with the new law.