Freight Broker Bond (BMC-84 or ICC Bond)

Freight Broker Bond (BMC-84 or ICC Bond)

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A property or freight broke is one of several classes of companies licensed by the Federal Motor Carrier Safety Administration ( FMCSA ). A “ broker ” is a tape drive mediator that specializes in pairing a customer ( “ shipper ” ) that needs to move property or persons and a “ aircraft carrier ” that is able to move property or persons. As with all baffle activities, there are requirements for participating in the sector .

Freight Broker Application Requirements

Brokers registering for the first time must complete an on-line applicant for agent authority and be issued an “ MC ” number by the FMCSA. You may begin the serve here .
After registration, the FMCSA will require :

  • For brokers of property: A surety bond (Form BMC-84) in the amount of $75,000. BMC-84 Freight Broker Bond form
  • For brokers of household goods: A surety bond (Form BMC-84) in the amount of $75,000.
  • Form BOC-3, designation of the process agent for the applicant firm.
  • $300 application fee.

Freight Broker Bond Highlights

Obtaining a BMC-84 Freight Broker Bond

hostage bonds are similar to unguaranteed lines of recognition. In decree to quote a security attachment, we must get comfortable with the applicant ‘s credit and fiscal condition. To offer you terms for a BMC-84, we will generally need the following :

  • Freight Broker Bond Application
  • MC# (Get Operating Authority / MC number)

note : We offer non-standard plan entree to applicants with damaged credit and weak fiscal statements. Bad credit does not mean that you will be turned away.

WHAT IS THIS SURETY BOND?

A freight broke bind is a type of fiscal guarantee. Freight brokers and freight forwarders operating in the United States must electronically file a freight agent alliance in order to obtain and maintain a license. This guarantor bond was first base required in 1930 by the Interstate Commerce Commission, and denominated an “ interstate commerce commission bond ”. The Federal Motor Carrier Safety Administration ( FMCSA ) is nowadays the license body, regulating intermediaries that move property such as family goods or freight and centrifugal cargo ( drive vehicles ). The FMCSA monitors licensed brokers to ensure that they operate according to their agreements with shippers and motor carriers. If a freight mediator fails to comply with his or her contract, a carrier or a shipper may file a claim against the operator ‘s cargo broker adhesiveness. Read the Form BMC-84 Broker ’ mho or Freight Forwarder ’ s Surety Bond under 49 U.S.C. 13906 to understand more clearly the nature of the freight broke shackle obligation .

WHAT IS THE “BOND PENALTY”?

A security chemical bond must be written in a specific come, referred to as the “ bail penalty ” or the penal sum of the shackle. It is the utmost amount that a hostage company will pay in the event of a claim. The freight agent bond penalty stood at ten thousand dollars for forty years. It was increase on June 29, 2012, when the Congress passed in to jurisprudence the Moving Ahead for Progress in the twenty-first Century Act ( MAP-21 ). The union codified brought many changes to the freight mediator sector. Two affected the bonding requirements .

  • The freight broker bond penalty increased to a minimum of seventy five thousand dollars ($75,000).
  • The law imposed a seventy five thousand dollar ($75,000) surety bond requirement on freight forwarders (FF).

The Independent Property Brokers & Agents ( AIBPA ) and the National Association for Minority Truckers ( NAfMT ) objected to the increased freight broker attachment prerequisite. Abuses within the industry, bungling commercial enterprise practices and broadly the high rate of sign default option by both shippers and carriers supported the parties pushing for the changes .

WHERE CAN I LEARN MORE ABOUT THE FREIGHT INDUSTRY?

freight boards are an excellent source for data on the skill of of the most lucrative clientele and what their loads are. There are many. local associations of property brokers provide estimable general confirm of brokers and participate in legislative efforts on behalf of intermediaries. professional associations besides post and contribute to sector-specific periodicals such as Overdrive Magazine, which offers seasonably reporting on topics of interest to cargo brokers. The Cass Freight Index published by Cass Information Systems, offers an analysis of monthly aggregate deliveries of cargo within the United States. Data on more than 1,200 divisions of specific companies and manufacturers is published, providing a video of cargo volumes and trends in the sector .

WHAT WILL A FREIGHT BROKER BOND COST ME?

This is not a question that can be answered without an application. A freight broker bail is a fiscal undertake. The security bind guarantees that the broke will properly account for money that come to him or her in a fiduciary capacity. fiduciary means “ a financially responsible person ”. so, a security shackle applicant ‘s personal history of fiscal responsibility is key to underwriting. That being said, we decline no one. We offer cargo forward and freight agent attachment quotes to ALL applicants. Premiums broadly run from one percentage ( 1 % ) to fifteen percentage ( 15 % ) of attachment penalty, based largely on credit history. We need only the applicant ‘s MC # and an application to offer a quote .
National guarantor bond drawing card, Surety One, Inc. is the MOST RESPONSIVE security adhesiveness insurance broker in North America. Call ( 800 ) 373-2804, email us at Underwriting @ SuretyOne.com or pawl here if you would like to have a conversation about your freight forward or freight agent bail indigence .
FYI : Forwarders/freight operators may besides need :

Read more about these surety bonds by clicking on the associate !
Surety shackle application inspection and quoting are free of appoint. There is no duty to purchase .

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