Risky Business

What is Map-21

Hi Everyone,

You've probably been hearing the term "Map-21" tossed  around over the past few months.  You'll be hearing a lot more because December 1 is when the FMCSA provision is now officially enforced.

Map-21 is the acronym for "Moving Ahead for Progress in the 21st Century" Act.

(Yes, I know what you're thinking..."We're from the government, and we're here to help you."  LOL

The most familiar dust kicked up so far is the requirement that Brokers and Freight Forwarders carry $75,000 vs the old $10,000 *Broker Bond. 

*The BMC-84 or 85 Broker Bonds are Surety Bonds...shippers or carriers are promised this in the event of Broker malfeasance.

There are other significant mandates that will impact the transportation industry and possibly you:

1.  Map-21 requires disclosure of family ownership of multiple transportation companies:  Carriers, brokers, and freight forwarders must disclose any familial relationship with owners of other transportation companies.

2.  Map-21 includes a ban on "reincarnated" carriers.  DOT can revoke registration or authority of a "reincarnated" carrier or levy a fine.  This also applies to failure to disclose important facts.

3.  Map-21 requires EOBRs (event-on-board recorders) on all interstate commercial motor vehicles within 2 years.  The DOT will issue rules within a year so that by 2014, CMVs will install an "electronic logging device" to "improve compliance" with hours of service (HOS).

4. Map-21 establishes a national driver registry:  There will be a national registry of drivers with CDLs, including driving history and drug and alcohol test results.

5.  Map-21 imposes minimum driver training standards:  Within one year, the DOT will establish national driver training standards for a commercial driver's license.

6.  Map-21 creates a Unified Registration System (URS):  All Motor Carriers, brokers and freight forwarders must register, and carriers and brokers must register with separate authority for each function.

7.  Map-21 imposes stricter regulation of bond and trust companies:  More transparency and fairness are required in the payment of claims by bond and trust companies.

...and if all of this makes your eyes glaze over, just remember this general contract provision admonishing Motor Carriers to stop brokering loads when they don't have a Broker Authority:

Motor Carrier will NOT re-broker, co-broker, subcontract, assign, interline, passoff, or hand off the transportation of shipments hereunder to any persons or entity without the prior written consent of Broker.

The civil penalty for knowingly engaging in interstate brokerage or freight forwarding operations without authority range up to $10,000.

In addition, there is no limit for any injured third party, and penalties and liability apply jointly and severally to all corporations or partnerships involved in the transportation and INDIVIDUALLY to all officers, directors and principals.

The stiff penalties are something to consider for anyone brokering just occasional loads.

I'll keep an eye on how the planned enforcement progresses and report back to you.

Shelly