UPDATE: JW Surety Bonds now has a bond program to handle the $75K freight broker bond, created in an attempt to help the small brokers the AIPBA represents. We believe the bond program addresses many of the AIPBA’s concerns as it:
- Requires No Collateral
- Provides Approvals Regardless of Credit Strength
- Provides the Lowest Rates
- Provides Approvals in 5 Minutes
Continuing their effort to repeal an amendment to the federal transportation bill, Moving Ahead for Progress in the 21st Century, the Association of Independent Property Brokers and Agents (AIPBA), has engaged the services of a federal lobbying firm, LobbyIt.com of Washington, DC.
Learn everything you must know by viewing our $75K bond guide.
The amendment, which raises the surety bond requirement for freight brokers from $10,000 to $75,000, is scheduled to go into effect October 1, 2013. The AIPBA, a trade group for small and mid-sized freight brokers, has voiced serious concerns about the anti-competitive effects the bond increase will have on the industry.
The lobbyists will immediately attempt to introduce a “$75K Broker Bond Repeal Bill” to Congress. In addition, the AIPBA will consider court action if necessary to challenge the increase in federal court.
In a video announcement made in March of 2013, James Lamb, President of the AIPBA, stated if his organization’s attempt to repeal the law fails, both new entrepreneurs and existing small freight brokers may be forced out of the business. With greater demand for the remaining freight brokers’ services, large brokers will likely lower rates which could result in higher costs to the shipper, ultimately trickling down to the American consumer.
The AIPBA agrees that increasing the financial security in place to protect owner/operators is appropriate but would prefer to see the increase set at $25,000 to reflect the rate of inflation since the first bond requirement went into place in the 1970’s.
Take a look at our recently posted article to learn more about the freight broker bond increase.