• Henry Seaton

FMCSA to hold meeting on broker, forwarder financial responsibility

The Federal Motor Carrier Safety Administration has scheduled a May 20 roundtable discussion at its headquarter in Washington, D.C., regarding property broker and freight forwarder financial responsibility. The meeting, which will be open to the public, will focus on:

  • The adequacy of existing trust fund industry practices;

  • Federal requirements for such institutions; and

  • The underlying instruments they issue for use by brokers and freight forwarders submitting the Broker's or Freight Forwarder's Trust Fund Agreement (FMCSA Form BMC-85) to satisfy the agency's financial responsibility rules.

FMCSA seeks information from motor carriers and shippers that have experienced challenges receiving compensation for claims against freight forwarders and brokers due to insufficient funds.

For details of the meeting, read the April 27 Federal Register notice.

Avoid legal pitfalls

Rules of the Road offers practical help on avoiding legal pitfalls in working with customers, independent contractors, insurers, factoring companies, etc.

Many serious legal risks will go unnoticed unless you are watching for them. Don't take chances.

 Although successful food haulers already employ the common sense steps required in FDA's new transportation rule, declaring your compliance can help you stay competitive for spot-market freight.