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Quote of the Day

Tough times call for tough quotes, including these timeless classics:

“Tough times never last, but tough people do.”
-- Robert H. Schuller, American televangelist, pastor and author

“The only thing that overcomes hard luck is hard work.”
-- Harry Golden, American journalist and newspaper publisher

Senate bill targets "'bad" freight brokers

Senator Olympia Snowe (R-Maine) and Senator Amy Klobuchar (D-Minn.) recently introduced the “Motor Carrier Protection Act of 2010”  (Senate bill 3483) in response to concerns about “unscrupulous brokering practices that continually take advantage of small business truckers.” The bill is designed to beef up regulatory oversight of brokers and freight forwarders in the trucking industry.
The senators worked with the Owner-Operator Independent Drivers Association (OOIDA) and the Transportation Intermediaries Association to develop the legislation.
“If passed, this law would put a stop to a system that allows rogue brokers and scam artists to operate unchecked,” says Todd Spencer, executive vice president of OOIDA. “Too often, we’ve seen bad brokers get away with collecting payment from shippers but leaving truckers holding the bag.”
If passed, the “Motor Carrier Protection Act of 2010” will:
* Increase the broker bond from $10,000 to $100,000 and expand that bond requirement to freight forwarders.
* Increase requirements and disclosures for any person or company seeking to obtain broker or freight forwarder authority.
* Establish significant penalties for violations of broker regulations, including unlimited liability for freight charges for conducting brokerage activities without a license or bond.
* Create a requirement for brokers and freight forwarders to renew their operating authority annually and require FMCSA to revoke operating authority that is not renewed annually. Revenue generated from the renewal fees will be dedicated to FMCSA’s oversight and enforcement of broker regulations.
* Establish strict guidelines on companies that provide brokers with surety bonds and on how they administer bonds.
* Clarify that trucking companies must have a broker’s or freight forwarder’s license and an appropriate bond in addition to their motor carrier operating authority to arrange freight for another carrier for compensation.