Broker $10,000 bond petition

what petition sir??

 

There's no way I would sign this. I think it should go up to $100,000. This will take care of the shady brokers

 

for sure raise it to weed and seed thru all the fly by nights...

 

ANY trucker who signs that petition is an idiot. Why would anyone on the trucking side NOT want the bond to be raised? When a broker doesn't pay the carrier, the carrier files a claim against the bond in order to get paid. A $10K bond doesn't cover very many loads, so by the time you realize you aren't getting paid and file, that $10K bond is likely already gone....so the truck is screwed. Meanwhile, you've already paid for the fuel to move the freight, paid your driver to drive the miles....you've had expenses, but you're not going to get paid for it.

My opinion? The $100K bond is STILL too low! If the motor carriers are required to carry $750K in liability insurance, brokers should have to carry a $750K bond, too. Want to broker freight which requires a higher minimum liability limit by the motor carrier? Broker bond limits should be higher, too. The truck does the work, and payment to the truck should absolutely be guaranteed.

The alternative to having a higher broker bond? You should only be allowed to broker freight to the extent that you are covered under your bond. If the freight you have brokered at any time exceeds the bond you have, it should be a felony offense with a minimum 5 year sentence. Want to have $20M worth of freight? Better have a $20M bond. Only want a $10K bond? Better not have more than $10K promised to trucks at any time.

 

More government mandates that raise the costs of doing business is not the answer.

 

The brokers already drag down the rates. Especially these shady ones. A $100,000 bond makes it harder for the bad actors to start up.

 

Bonding and insurance are two different things, and any broker with an ounce of common sense will have business insurance. The bond is there to cover in case the broker doesn't pay carriers. For that reason, darn right the bond rate needs to be higher. $10,000 can get chewed up pretty darn quick. I don't see a problem with the bond minimum being $75,000 to $100,000.

Insurance is there to cover other things business related. Anyone that starts any business without business and other related insurance is just asking for trouble.

 

Ok I'm gonna be the Devil's Advocate here:
People say brokers make too much now, well whats gonna happen when they HAVE to pay to carry a higher bond?? I know what, they are gonna keep a LARGER percentage to make up the difference. Basicly making rates go down.

What about the mom-n-pop brokers who can't afford the higher bond?? They are gonna merge or be bought out by the giants like TQL or CHR and we all know the outcome of that.

 

There are so many fly by night situations. That's what this will prevent. There are countless stories of drivers and companies being ripped off by these brokers.