The FMCSA or the Federal Motor Carrier Safety Administration finalized a guideline had been able to change the financial responsibility requirements for brokers and freight forwarders as well. A certain provision could enable the agency to bring down a broker or freight forwarder down as quickly as possible in the event of a drawdown of a bond as it requires financial security with totally specific claims and additional reasons.
This final rule is known as “Immediate Suspension of Broker/Freight Forwarder Operating Authority” will let the FMCSA suspend the operating authority registration for a broker or even a freight forwarder as it becomes available when the financial security falling below $75,000, all while the process had played out through the course of a 30-day waiting period after the notice of cancelation of the security through the bonding company or trust fund. Terrible accident actors are usually implying that for the reasons of freight not having intention to pay the carriers.
Within the final rule, the FMCSA had to spell out varied reasons that a broker’s and/or forwarder’s “available financial security” could fall right below $75,000.
Such as a claim had been against the broker or freight forwarder can be converted to a judgement, a broker or freight forwarder consents to a drawdown or a broker or a freight forwarder cannot respond to a valid notice of claim from a surety or trust provider.
The broker or freight forwarder that doesn’t replenish funds all in the span of seven calendar days may have notice from FMCSA states that the terms of the new rule which the agency can’t shut down the entity with a notice of suspension of operating authority. If nothing else, this will definitely stop freight fraud in it’s tracks.