This page contains a Flash digital edition of a book.
FROM THE HILL


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


14


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


ROADWISE | ISSUE 5, 2014 | www.mttrucking.org


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20