2 Ways MAP-21 Could Surprise Freight Brokers

Written by Chris Tanke | Wed, Apr 24,2013 @ 10:13 AM

HNI Vice President & Transportation Practice Leader

The MAP-21 transportation funding bill passed by Congress in July 2012 is going require many changes in the transportation industry over the coming months.  However, two changes the bill requires of freight brokers may be flying a bit under the industry radar.

1.) Separation of Motor Carriers and Freight Brokers Authorities

MAP-21 requires separation of motor carrier authority and brokerage authority.  In the past, it was very fuzzy as to whether freight brokers could operate under the same authority as an affiliated motor carrier. 

The new bill requires both entities to be run under separate authorities.  Depending on the situation, this may involve a new FEIN number, separation of payroll from the trucking entity and a separate address and phone.  Violations for an unlicensed brokerage could be penalties as high as $10,000 per load.

2.) Increased Bond or Trust Fund Requirements

The bond or trust fund requirement for freight brokers jumps from $10,000 to $75,000.  This increase to $75,000 will result in higher premium cost for the bond, greater collateral required to back the bond, and potential personal indemnification. 

Get ready to implement these and other changes mandated by MAP-21.

The target date of these changes had originally been July 1, 2013.  The federal government has now pushed back the implementation date to October 1, 2013. 

Get started early on addressing these upcoming changes to avoid any interruption in your business!  To learn more about these and other changes planned, download our white paper on The 20 Must-Know Components of MAP-21.


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