At the time of this writing, there is less than a week until the new US federal $75,000 financial security requirement for freight brokers and forwarders goes into effect.  By now, most everyone has the deadline of October 1^st committed to memory, but many still do not understand the options available to meet the FMCSA requirement.

October 1^st Deadline Stands

According to the FMCSA (Federal Motor Safety Administration), all brokers and forwarders must file new BMC-84 and BMC-85 forms confirming $75,000 financial security as of October 1, 2013.  Although the FMCSA has allowed for a “phase-in” period which has created confusion, the agency’s guidance released September 5^th indicated the extension was provided solely to allow the industry to complete all necessary filings.

If proof of the $75,000 bond or trust is not filed on time, freight brokers and forwarders will receive notification from the FMCSA giving 30 days to get the bond or trust in place before revoking the broker or forwarder authority.  The fact remains that brokers and forwarders must have the $75,000 financial security in place in order to operate legally.  Even though a broker may not be penalized by the FMCSA until December 1st, their clients will not be guaranteed payment until the $75,000 financial security is in place, likely affecting their ability to continue operations.

Map-21