Freight brokers and others within the transportation industry have been anxiously awaiting an outcome to the Transportation Bill.
The House and Senate have passed the highway re-authorization bill this last week. The agreement passes legislation that extends federal highway, rail and transit programs for 27 months. President Obama is expected to sign the transportation bill at a ceremony at the White House today.
Some of the particulars to note are the $75k Surety Bond Minimum for all brokers and that carriers CANNOT re-broker freight without proper authority and bond.
The $75k bond seems to be a slight compromise from the original version that had a $100k minimum. Brokers will soon be required to post a bond or other financial security of at least $75k.
While the stated intentions of the increased bond minimum are to reduce the number of fraudulent brokers entering the industry, many believe it will put more good ones out of business. It will also be tough on new players in the market unless they are able to come up with the capital to cover the annual costs of the new bond requirement.