What is a Freight Broker?

[purgoose10]

When a carrier is going belly up, after they stop making payroll, they usually stop paying their insurance premiums. Then they loose their carrier authority. However, they still have their broker only bond in tact. I guess my question is, who can they give loads to? If they give a load to a under CDL van, in just about every case, neither party has carrier authority. Can they give loads to under CDL vans because they aren't required to have their own authority? The vans in question made a contract with this property broker when they had carrier authority and have commercial insurance.

I would say if they loose they're carrier authority, generally it's from failure to pay insurance. If they are operating as a broker after this happens and they are bonded by a different insurance company or they could be doing something most would not dare do. Yes they can still broker loads with the bond because the people they are brokering to carry the load (carrier) are furnishing the authority and insurance. Most trucking company's that get a hint of this and have question what's going on will go after that customer directly through their sales department. If they are still brokering and using the same carriers they must be paying them because the carrier won't generally continue to do business with them.

 

[jwsurety]

As mentioned earlier, the FMCSA recently confirmed the surety bond requirement for freight brokers will increase from $10K to $75K on October 1st, 2013. Smaller brokers are concerned with the increase in premium and full collateral many companies are requiring to get the $75K bond, as it will put many out of business.

Our agency has created a bond program specifically to help the small to midsize brokers remain in business. Brokers can get the $75K bond with:

• No Collateral
• Lowest Rates
• No business financials
• Bad credit? No problem!
• No experience required
• 99.9% approval rate

Apply directly on our website to get an instant approval now.

 

[paullud]

As mentioned earlier, the FMCSA recently confirmed the surety bond requirement for freight brokers will increase from $10K to $75K on October 1st, 2013. Smaller brokers are concerned with the increase in premium and full collateral many companies are requiring to get the $75K bond, as it will put many out of business.

Our agency has created a bond program specifically to help the small to midsize brokers remain in business. Brokers can get the $75K bond with:

• No Collateral
• Lowest Rates
• No business financials
• Bad credit? No problem!
• No experience required
• 99.9% approval rate

Apply directly on our website to get an instant approval now.

We need to get rid of some small brokers and slow the influx of new ones to get rates back up.

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[jwsurety]

Some small brokers (not all) are good business people as well and are just as deserving of getting a bond as some larger companies. Competition is good in a free market.

 

[paullud]

Some small brokers (not all) are good business people as well and are just as deserving of getting a bond as some larger companies. Competition is good in a free market.

The competition created by the vast majority of smaller brokers is bidding down rates to get the load from a company with a solid reputation. There are some good newer brokers but I am finding them to be few and far between.

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[jwsurety]

Those legitimate smaller brokers doing loads a bit cheaper sounds like good old fashioned competition. I agree that there are a good handful of unscrupulous brokers that are not deserving of getting a bond and likely should not be in business. However, can be said about any business industry.

 

[paullud]

Those legitimate smaller brokers doing loads a bit cheaper sounds like good old fashioned competition. I agree that there are a good handful of unscrupulous brokers that are not deserving of getting a bond and likely should not be in business. However, can be said about any business industry.

Competition or the destruction of the industry which will no doubt cause safety issues from lack of vehicle upkeep?

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