New $75,000 bond?

Unless something changes there are no exceptions. You can go through someone like TIA/ITS but the cheapest is a letter of credit,about 700.00/year.

 

Unless something has changed you don't HAVE to put up 75,000 you can get a bonding company to bond you for any amount you want for a small percentage of the bond's face value.

Or if you have excellent credit and a good relationship with your bank you should be able to get a letter of guarantee proving that you are good for it. During the years that I had a brokerage I never put up a dollar, bank always backed me with a letter.

 

Look at the thousands of dollars it costs in insurance per year to make me road legal and I never had an accident or freight claim. It's about time brokers gotta have some skin in the game.

Might this open up the door at shippers for more direct hauls by actual truck owners? That would be a positive thing.

 

That was passed in 2012 the new $75,000 bond is for brokers and freight forwarder Companies. This law is to take place in October 2013. This will mean that the brokers will need to steal more money from us truckers.

 

I have to put up a 50k bond in my business, and I'm not dealing with near the amount of money a broker does. Seems kinda low to me. A broker can be on the hook for 100k in just a short time. Just renewed mine. Fairly cheap to do if you find the right place.

 

I know I will get some flack over this, but the truth is there are a LOT of loads out there that a broker is absolutely NOT needed. Back in the day when a company wanted to ship something and all we had was snail mail and word of mouth, a broker was needed.

But now with just about everything being on line, in a lot of cases, I just don't see the need. The company is going to pay the broker a set amount anyway, and then the broker will skim whatever he/she can off the top for their expense,profit.

In fact, there are times that a company would be BETTER off without a broker, several times there is a load posted by a broker that is way too low, you call and tell them what you need to haul it, they laugh or say no way they could pay that, so you load you truck with something else and away you go.

A couple of days later that load is still posted, now for MORE money than you ask for, this load could have already been delivered, saving everyone time and money.

There are MANY times a company SHOULD have a broker, but some of these (brokers) are making things worse instead of better. We haul a LOT of items for several companies directly, and it has worked without a hitch. It has given us a better rate (no middleman) and it has given the company, and their customer better service.


JMHO

 

If you had a bond for the $10,000 like I did, the $75k bond should be no problem. If you have bad credit and can't get a bond, why should truckers extend you credit when you've proven you won't pay other creditors.

 

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