FMCSA hosting roundtable on broker solvency, ability to pay carriers
The Federal Motor Carrier Safety Administration will host next month an informal roundtable discussion about property broker’s and freight forwarder’s ability to meet their payment obligations to carriers. According to the FMCSA, there have been numerous complaints filed pertaining to broker bond providers, and multiple entities have looked to the FMCSA for guidance regarding the procedures with the insolvency or financial failure of a broker.
The meeting will be held Friday, May 20 from 9:30 a.m. to 4:30 p.m. at the U.S. Department of Transportation’s Media Center in Washington, D.C., and it will be open to the public.
Brokers and freight forwarders are required to have either a BMC-84 Surety Bond or a BMC-85 trust fund of at least $75,000 on file with the FMCSA in order to obtain operating authority, and the agency says it wants to make sure shippers and motor carriers can collect payments from brokers, even with the new bonds requirement in place. FMCSA says it believes this roundtable meeting will help it gather critical information on how to best meet its responsibilities. FMCSA says it’s looking for information from carriers and shippers that have experienced challenges receiving compensation for claims against freight forwarders and brokers due to insufficient funds. A new federal rule that implements large fines for carriers, shippers and brokers caught pressuring drivers to operate beyond federal safety regulations, such as when … read more at ccjdigital.com