companies, said the FMCSA’s ruling is probably correct in that the section requir- ing carriers to obtain broker authority is clearer than the one that might say they are exempt. “…We’ve been advising our clients that if
they’re going to tender freight to third par- ties, and they’re a motor carrier, they either need to interline that freight with that third party, or they need to have broker authority,” he said. Raw commodities have been exempted
since 1958. However, once a food has been processed, it’s no longer exempt. The tools used in agriculture also are not exempt, and that can be important in an industry that easily is disrupted by unpredictable weather patterns. Tomatoes often are canned in the fields, and canning equip- ment is not exempt. Neither is anhydrous ammonia, a growing agent that must be applied on a timely basis but which faces a shortage of hauling equipment because trailers are being used to haul propane.
Samson said it’s not as simple as just
paying for a bond. Under the law, carriers must have someone on staff with three years of brokerage experience or experience that has been deemed allowable, with “allowable” still being defined by the FMCSA’s rulemaking process. For some of his clients with 10 trucks and three or four employees, those are prohibitive require- ments. The cost of the bond itself can be a problem. “I’ve heard as low as $1,700, but I’ve also heard as high as you having to come up with collateral for the whole thing,” he said. Samson has drafted corrective
language, signed by 32 state trucking associations (including Maryland Motor Truck Association), that he hopes will make its way into the next surface transportation bill. The provision also substantially affects
intermodal carriers with port operations. Curtis Whalen, executive director of the American Trucking Associations’
Intermodal Motor Carriers Conference, said that type of business is extremely unpredictable. Enormous cargo ships arrive in port at unexpected times with unexpect- ed cargo loads. Thousands of containers are unloaded, creating huge congestion prob- lems. Penalties apply if containers are not moved within a certain time period. Whalen said his conference fully supports
increasing the broker bond provision. Maritime trade attracts many foreign com- panies who don’t need more than a phone to go into business. Then they just disappear. Louis Campion, President and CEO of
the Maryland Motor Truck Association, said the provision affects his members operating at the Port of Baltimore greatly. The MAP-21 provision shouldn’t have been used to change an informal practice that has been used for decades. “The intent of Fighting Fraud in
Transportation was to crack down and limit unscrupulous brokers. Wrapping motor carriers up in this really has dam-
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