Freight Forwarder Bond
A freight forwarder is one of several classes of companies licensed by the Federal Motor Carrier Safety Administration (FMCSA). A "forwarder" is a transport intermediary that specializes in pairing customers with carriage companies that are able to move property or persons. Per the FMCSA, a freight forwarder is an individual or entity that has been issued an operating authority as a forwarder in interstate or foreign commerce. Freight forwarders arrange transportation of goods only through FMCSA-licensed carriers. Freight forwarders issue bills of lading to shippers and are responsible for the loss of or damage to the goods.
FREIGHT FORWARDER APPLICATION REQUIREMENTS
Brokers registering for the first time must complete an applicantion for authority and be issued an "FF" number by the FMCSA. You may begin the process here. Application must be completed across the Unified Registration System platform. A freight forwarder bond is essentially the same as that required for freight brokers, a BMC-84 surety bond. This bond was first required in 1930 by the Interstate Commerce Commission, and denominated an "ICC Bond". The FMCSA regulates ALL intermediaries that move property such as household goods or freight and motor cargo (motor vehicles). If a freight forwarder fails to comply with his or her agreements, a carrier or a shipper may file a claim against the operator's freight forwarder's bond. Read the Form BMC-84 Broker’s or Freight Forwarder’s Surety Bond under 49 U.S.C. 13906 to understand more clearly the nature of the freight broke bond obligation.
HOW MUCH MUST THE FREIGHT FORWARDER BOND BE?
A surety bond must be written in a specific amount, referred to as the "bond penalty". The freight forwarder bond was increased on June 29, 2012, when Congress passed in to law the Moving Ahead for Progress in the 21st Century Act (MAP-21). The federal statute brought many changes to the freight intermediary sector, including an increase to seventy five thousand dollars ($75,000).
WHERE CAN I LEARN MORE ABOUT FREIGHT FORWARDING?
Freight boards are an excellent source for information on the acquisition of of the most lucrative clientele and what their loads are. There are many. Local associations of property brokers provide good general support of brokers and participate in legislative efforts on behalf of intermediaries. Professional associations also post and contribute to sector-specific periodicals such as Overdrive Magazine, which offers information on topics of interest to freight forwarders. The Cass Freight Index published by Cass Information Systems, offers an analysis of monthly aggregate deliveries of freight within the United States. Data on more than 1,200 divisions of specific companies and manufacturers is published, providing a picture of freight volumes and trends in the freight sector.
WHAT WILL A FREIGHT FORWARDER BOND COST ME?
We require an application. A freight broker bond is a financial guarantee. The surety bond guarantees that the broker will properly account for money that come to him or her in a fiduciary capacity so, a surety bond applicant's personal history of financial responsibility is key to underwriting. That being said, we decline no one. We offer freight forwarder and freight broker bond quotes to ALL applicants. Premiums generally run from one percent (1%) to fifteen percent (15%) of bond penalty, based largely on credit history. To quote an applicant we need:
National surety bond leader, Surety One, Inc. is the MOST RESPONSIVE surety bond underwriter in North America. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here if you would like to have a conversation about your freight forwarder bond need.
FYI: Forwarders/freight operators may also need:
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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