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Bond, Broker Bond Food haulers, intermodal face brunt of increased bond challenges

BY STEVE BRAWNER ContributingWriter

Let’s say your company is expecting to

haul 12 truckloads, but when it’s time to actually pick it up, there are 15 truckloads. The haul cannot wait, but you don’t have 15 trucks. In the past, you’ve called on your fellow trucking association member to subhaul the other three loads. Maybe you’ll pay him, or maybe you’ll just owe him a favor. That’s called an “interchange of convenience.” It’s not as convenient anymore. Under the terms of the MAP-21 surface


transportation bill, that activity is now considered to be brokering and requires a $75,000 bond. If a motor carrier isn’t paid, it can make a claim against that bond. The provision affects only the practice

known as “subhauling” – when a carrier transports freight across an entire journey. Bonding authority is not required when carriers engage in “interlining,” where a carrier might carry a load part of the way for another. Interlining is a common practice in less-than- truckload hauling, where a larger carrier might contract with a smaller, regional carrier for the

last leg. In some cases, one carrier can carry a load to another carrier’s lot.However, that won’t always make sense, particularly for short hauls. Under the old law, brokers were required

to maintain a $10,000 bond or trust fund agreement, while brokers of household goods were required to maintain a $25,000 bond.Now all brokers must post a $75,000 bond. MAP-21 requires FMCSA to review the sufficiency of the bond amount every five years. The Transportation Intermediaries

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