US forwarders face bonding
- Latest News
- Friday, 18 June 2010
The bill, the Motor Carrier Protection Act of 2010, would make it more expensive for brokers, freight forwarders and other intermediaries to operate.
The bill increases the US$10,000 bond placed currently by brokers to US$100,000 and for the first time imposes a bond on freight forwarders.
The legislation also tightens government requirements for entities seeking broker and forwarder authority and levies tough penalties - such as unlimited liability for freight charges - for such violations as conducting brokerage activities without a bond or licence.
Operating licences would be granted for only a year at a time, potentially impacting on the value of companies put up for sale.
