WHAT IS A FREIGHT BROKER BOND
A Freight Broker Bond, also known as Property Brokers Surety Bond, BMC-84, or a ICC Bond, is necessary for those operating as a transportation broker in the United States. The bond is required by the Federal Motor Carrier Safety Commission and must be obtained before receiving a license. This bond is a contract that protects motor carriers and shippers and ensures you follow all FMCSA regulations.
WHY IS A FREIGHT BROKER BOND REQUIRED
In order to operate legally as a transportation broker, a freight broker bond is required by the FMCSA (Federal Motor Carrier Safety Administration). A Freight Broker Bond is required by the FMCSA to ensure that all licensed freight brokers live up to certain standards and to prevent any kind of fraud or failures to pay in a timely manner.
HOW MUCH IS A FREIGHT BROKER BOND?
Typically a freight broker bond will cost 1% to 3% of the bond amount ($75,000), but like any bond, the cost can vary. While you will most likely pay anywhere from 1% to 3% of the bond amount, we have offered rates lower and higher, depending on the applicant’s qualifications. The percentage you are responsible for paying varies based on your personal credit, surety history, and business financials. At Bonding Solutions, we have worked hard over the past 25 years to ensure our clients are receiving the best rates in the industry.
HOW DO I APPLY FOR A FREIGHT BROKER BOND
What is a Freight Broker
In order to understand the need for a freight broker bond, you first have to understand what a freight broker is exactly. A freight broker is a middleman between carriers and shippers, facilitating communication between the two parties. A freight broker ensures that the process of handing off the freight and delivery goes smoothly. A freight broker negotiates a price with the carrier for the shipper, plans the route, and tracks the shipment which is beneficial for both shipper and carrier. Working with a freight broker can save a carrier money as the freight broker plans the route in order to eliminate deadhead miles which is the point of unloading to the point where your new shipment is ready for pickup. Shippers prefer to work with a freight broker because they have a point of contact from beginning to end, making it easy to stay up-to-date on their shipment’s whereabouts. A freight broker must obtain be bonded and licensed in order to operate legally in the United States. A freight broker bond must be obtained prior to receiving a freight broker license.
What are the benefits of working with a Freight Broker
A freight broker is a master of his/her craft. They understand the importance of finding affordable shipping options because that can make or break a company’s financials. Freight brokers work with shippers and carriers to negotiate the best price for both parties. Freight brokers are also required to be bonded, which is an added form of insurance for shippers and carriers. If a shipper decides to negotiate their own terms with a carrier, they will not have the added protection of a bond like they would if they chose to use a freight broker. Freight brokers create relationships with carriers they trust, which help give shippers peace of mind knowing that their freight will be handled by an established, trustworthy carrier. Freight brokers add an extra level of comfort and stability for shippers.
What is a Freight Broker Bond
A Freight Broker Bond, also known as Property Brokers Surety Bond, BMC-84, or a ICC Bond, is necessary for those operating as a transportation broker (freight broker) in the United States. The bond is required by the Federal Motor Carrier Safety Commission and must be obtained before receiving a license. This bond is a contract that protects motor carriers and shippers and ensures the freight broker will follow all FMCSA regulations.
Why is a Freight Broker Bond Required
In order to operate legally as a transportation broker, a freight broker bond is required by the FMCSA (Federal Motor Carrier Safety Administration). A Freight Broker Bond is required by the FMCSA to ensure that all licensed freight brokers live up to certain standards and to prevent any kind of fraud or failure to pay in a timely manner. Because a freight broker is 1 of 3 parties responsible for the freight getting from point A to Point B, a bond is required. The bond protects the shipper or carrier from any fraudulent activity on behalf of the freight broker. This bond ensures that the carrier or shipper will not incur financial loss or hardship due to the fault of the freight broker.
How much is a Freight Broker Bond?
How Do I Apply For a Freight Broker Bond
Choosing the right surety agency to help you obtain a Freight Broker Bond is crucial. Bonding Solutions is a leading surety agency with decades of combined experience. We help our clients get the best rates in the industry. The application process is simple, once Bonding Solutions has been provided with your financial credentials, we can get a Freight Broker Bond underwritten in 24 hours.
Understanding Freight Broker Bonds
Whether you are just starting out or you are looking for a freight broker bond renewal, Bonding Solutions is the team to help you. We know the freight industry and know how important it is for freight brokers to obtain a freight broker bond in order to operate legally. Our team works fast so that your business can continue to operate and grow.