Thursday, September 5, 2013

Legislative Update - MAP-21 and Broker Requirements

The agency issued its long anticipated guidance on MAP-21 today.  Attached is my summary analysis of its points and a complete copy of the agency’s document. Basically, the agency has given an additional 60 days for brokers and forwarders to file the $75,000 bond. The agency has made clear that in the future motor carriers must obtain a broker’s license in order to arrange for transportation which is not “joint line in nature” (i.e., freight which the origin carrier does not provide service on its own equipment for at least a portion of the journey).

The soft landing on enforcement means that unless Congress acts, existing carriers and brokers need to ensure their surety or bank trust agreements are filed quickly and carriers which wish to continue past practices of convenience interlining must obtain a broker’s license or freight forwarder permit as soon as possible.  Importantly, the agency indicates that a carrier can file for this additional authority in its current corporate name and that the agency will later sort out how to meet the MAP-21 compliance for separating authorities.  The attached summary is fairly comprehensive. 

Yours truly,
Henry E. Seaton