FreightCenter strongly supports an industry regulation addressed in the 27-month transportation bill recently approved by Congress and signed by President Obama. The provision, which takes effect in July 2013, mandates freight brokers and forwarders to carry a minimum $75,000 surety bond. In an effort to preemptively support this provision, FreightCenter increased its surety bond requirement in December 2011 to $100,000. The change in legislation allows for better protection for carriers and shippers.
Unchanged since mid-1980, the surety bond requirement ensures the financial stability of a third-party logistics provider and its integrity to uphold contractual obligations between carriers and shippers. According to the Transportation Intermediaries Association, the legislation establishes new bond and certification requirements for freight brokers like FreightCenter. Additionally, the new legislation establishes requirements to obtain licensing to broker freight; including three years of relevant experience or certified training.
“Because carriers and shippers are our main customers, we believe it is only fair to protect both parties. As the freight brokerage business continues to expand, FreightCenter needs to further separate itself from small, financially unstable firms in the industry,” said Matthew Brosious, chief executive officer and co-founder of FreightCenter.
Consistently doubling annual revenues for the past four years, FreightCenter harnesses the ability to connect carriers with residential and commercial shippers. With expertise in supply chain logistics and freight technology, the company arranges freight planning for any size shipper from large enterprise supply chains to residential households.
“We understand that stricter regulations make it difficult for other legitimate freight brokers to stay in business, which is why we offer solutions that help small, privately-owned businesses manage their expenses and generate new streams of revenue from less than truckload, truckload, intermodal and specialized freight,” said Brosious.
The company offers flexible software options that allow smaller brokerages that cannot afford to acquire a high-cost bond in order to maintain their book of business by booking through FreightCenter or through software integration. Offering a private-label transportation management system and various levels of system integrations, FreightCenter invites businesses to leverage its financial stability, procurement power and partner-carrier contracts.