Brokers lose court bid to stop Dec. 1 bond increase

| December 02, 2013

A federal court has denied a broker trade association’s motion to halt an increase in the surety bond from $10,000 to $75,000.

A three-judge panel of the U.S. Court of Appeals for the 11th Circuit rejected the Association of Independent Property Brokers & Agents’ motion for a temporary stay of the hike.


Beefing Up the Bond

Small brokers oppose proposed regs to increase the minimum bond to $100,000 and add other owner-operator protection.

The 2012 surface transportation act stipulated brokers must obtain the increased amount by Oct 1. Last September, the Federal Motor Carrier Safety Administration published notice it will revoke the operating authority of brokers who are not compliant by Dec. 1.

The association of small-and mid-sized independent property brokers argued the FMCSA failed to conduct proper rulemaking and fact-finding before issuing the rule, which it says will put thousands of brokers out of business.


How-to: File against a broker’s bond

Federal rules pertaining to broker surety filings are in flux following congressional action last year that raised the minimum bond from $10,000 to $75,000. Still, ...

The agency countered that since Congress set the amount, it does not have the discretion to change it. Additionally, federal law does not require a notice-and-comment period when an agency is responding to a statutory change and the rulemaking procedure would be impractical or unnecessary.

The Transportation Intermediaries Association, the American Trucking Associations and the Owner-Operator Independent Drivers Association supported the increased bond requirement.

  • together we accomplish

    Ofcourse they did. I’m not sure if this is a good or bad thing. I think the whole brokers thing sucks. why is it they get a load from a company for say 4 bucks a mile and then they turn around and get joe shmoe idiots to haul it for a 1.15 mile. we have all the fees and maintenance cost. I ever hear a driver saying he took a load for a buck just to move the truck. i’ll sit outside your truck after dark and if you come out to pee or check something i’ll beat you with my baseball bat. morons ruin it for everyone

  • guest

    Those RIP OFF brokers are nothing but Thieves any way you look at it…the absolute SCUM of the Earth.

  • guest

    Brokers are MAGGOTS feasting off the TRUCKER.
    They Steal, Lie, Mooch….anything so they don’t have to WORK fora living..they sit on their fat asses smoking cigars and looking for CHUMPS to haul their Loads for the LOWEST price…they POCKET every single PENNY they can suck up.

  • rcgauto

    Glad to hear that they kept the increased bond in place. This should add protection to carriers when brokes go out of business.

    In response to the broker bashing in the earlier comments, one has to wonder if the brokers really do make so much money – why they would object to a relatively small increase in cost of doing business. Also no one ever talks about brokers losing money when shippers refuse to pay.

    I think this provisions will hurt really new & small brokers and mainly carriers that used to broker on the side. A bit ironic.

    Any decent sized brokerage will have no problem getting the higher bond at all. Most will be glad to pay if it means less competition for them.

  • Mike

    Your very Ill informed that all brokers are (MAGGOTS) as you say. I myself was a broker for 2 years and a trucker for 34 years. First get your facts right. Before you open your mouth.

  • JIM

    I am a broker with a resume that includes 30 years of trucking experience. I started my brokerage with the mindset that there ARE too many brokers out there, and Some of them are World Wide, taking WAY to much off the top. My commission is 10% or less. Most of the time I average 3-6%, ON A GOOD DAY!! I pay my Carriers as much as I can possibly pay and still keep the lights on and have happy customers and carriers. Keep in mind though, if a carriers’ CSA sucks, You won’t get a load from me or any other reputable broker! NUFF SAID!?

  • richard biggs

    I am in no way pro broker, the industry was much better off when they just did exempt freight. If you haul a broker load that is too cheap you are the problem not the broker.

  • guest

    Sure beats working right?? You middlemen MOOCHES dont NEED to be sucking ANY money out of the equation…Brokers are LEACHES…sit on their ass and SUCK money that belongs to TRUCKERS.

  • guest

    Sure you specialize in making truckers Miserable, Broke, and Now you are a Self Imposed COP..bending over for CSA JIVE. You are a prime example of why we dont need brokers who are sucking the Pay out of the Load…and fattening YOUR wallet..and NOW Judging a hard working truckers by this BOGUS CSA Tyranny. YOU are certainly NO Friend of any trucker….you and your MOOCHING PARSITE breed need to be exterminated…..Gov. needs to flush you turds down the toilet and put and END to you CROOKS!!!

  • guest

    Broker is actually spelled PARASITE. Serves no purposeexcept to enrich himself……middleman…like we NEED more middlemen???? They need to abolish the Broker. ALL the PAY needs to go to the truck……a broker is a pre historic CON Man that needs to disappear. USELESSmoney sucking worthless TURDS.

  • Ai Pba

    Over 1,900 brokerages’ licenses were revoked yesterday, that’s nearly 10% of the entire brokerage industry. That was just day one. Revocations will continue for the next month affecting we believe tens of thousands of people most of whom, will head for the unemployment lines.

    But no matter how much you want to wish them away, the multi-billion dollar brokerages are not going anywhere. They will now be able to charge shippers more and pay truckers less. Consumer prices will now drastically rise.

    Not too long ago, OOIDA’s Todd Spencer said:

    “The big broker should never be the first call you make. Small brokers should treat you better and work harder to develop a mutually profitable relationship…”

    A year or two from now when you are getting paid less per mile by that Mega-brokerage who has all the loads, your grocery bill goes up, your insurance is increased (there’s an attempt in Congress to raise it to $4.4 million right now) and you feel the squeeze, you truckers will then realize how you shot yourselves in the foot by not recognizing that all small business is under attack.

    Lastly, although the motion was denied the actual case before the U.S. Court of Appeals is still pending.

  • guest

    Crooked Brokers having licenses REVOKED!! Good work Coppers!!! Finally getting RID of you Parasites…Big Brokers are high Profile they have to acknowledge LAWS and CLAIMS…these CROOKED dumps can get the HELL out of trucking and take along some of your Scumbag pals. A Broker is a Pimple on the ASS of Humanity…..let them go LEACH elsewhere…they are the Scum of the EARTH..we need LESS MOOCHES in trucking.

  • guest

    Brokers sit on their fat asses smoking expensive Cigars while the trucker works his ass off in Freezing weather…brokers are MOOCHES always getting Very Rich..driving expensive cars…always a nice Mercedes parked at the Broker office..nice Gold watches…all MOOCHED from Truckers PAY….those ANUSES should only be ALLOWED Minimum WAGE and be MONITORED 100% by COP agencies…they are usually EX CONVICTS doing what they do best STEALING…they damn sure dont lift a finger to do a Days WORK…NOPE only the SLAVE/TRUCKER does THAT Lowly stuff….and gets very LOW PAY for it. Brokers do NOT deserve more than TOKEN money…the TRUCKER deserves ALL Money allocated for transporting the LOAD…why in HELL should some CON ARTIST be sucking MONEY for doing absolutely NOTHING????

  • whatever

    I’m a trucker, a warehouse and a broker.i now have a $75,000 bond. That means i have to have $75,000 in a bond. It’s not a get our of jail bond with 10% and collateral.I don’t broker trailer loads. i do LTL and Air Freight. LTL Carriers and Air Freight companies cannot go to my bond to collect if i don’t pay. Why is their not a bond for those who do not do truckload? ASk CHR and the other huge guys. BTW – who did you get your last TL from? Who set the rate? i doubt it was the small broker.

  • twoshoes

    You are more than welcome to call all the customers yourself and get the loads! You don’t have to go through a broker, who is the lazy one?

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  • Ai Pba

    We Need Truckers Who Realize the $75k Bond is Really a Ploy to Get Rid of Small Brokers (nearly 10,000 were revoked in December) so the Big Brokerages Can Pay Them Less to Please Write to FMCSA to Support AIPBA’s Application for Exemption from $75k Bond for All Brokers and Forwarders, which is Currently Being Considered by FMCSA:

    Don’t Let Big Brokers Take Advantage of You, Truckers!

  • together we accomplish

    Mike, Most brokers are pieces of shit. go ahead and try to candy coat it because it won’t be a m&m it will still be a candy coated piece of shirt. strives to maintain an open forum for reader opinions. Click here to read our comment policy.