Brokers Get Ready for New $75K Bond

 A recent survey we conducted demonstrates that most brokers—or at least most brokers on the DAT Network—are aware of requirements of the Moving Ahead for Progress in the 21st Century (MAP-21) Act, which takes effect October 1.

The survey contradicts opinions expressed in several recent articles saying that brokers are unprepared for the new rules, especially the new requirement that brokers secure a $75,000 bond or trust fund. Here are some of the key findings from the survey:

    • Two-thirds of DAT customers with broker authority report that they already have a $75,000 bond or trust fund. Of those who don’t, 79 percent say they are either shopping for the bond or intend to. Only 3 percent say they don’t intend to get a $75,000 bond.
    • More than two-thirds of respondents said they were either “very familiar” (18%) or “somewhat familiar” (51%) with this and other requirements of MAP-21. Large and mid-sized brokerage firms are generally more prepared than their smaller counterparts. Eighty percent of the respondents who had already procured a $75,000 bond were those who move 50 or more loads per week.
    • Among the 13 percent of respondents who had “never heard of MAP-21,” many referred to themselves as truck finders, dispatchers or had other operational jobs. Company owners and managers were more likely to be familiar with the new rules.
    • Those who were unfamiliar with the new requirement were more likely to be carriers who broker loads only occasionally. Those companies apparently did not realize that the $75,000 bond requirement applies to their business.

Excerpts from the survey results are shown below.

What about your company? Is it prepared for the $75,000 bond and other requirements of MAP 21?