On April 24, 2023, the Federal Motor Carrier Safety Administration (FMCSA) published a final rule amending the financial responsibility requirements for brokers and freight forwarders.
Purpose of the Final Rule
The final rule aims to improve the financial stability of brokers and freight forwarders and protect shippers from potential losses in the event of broker or freight forwarder bankruptcy. The rule establishes new minimum financial responsibility levels and requires brokers and freight forwarders to maintain evidence of financial responsibility.
Key Changes
Minimum Financial Responsibility Levels
The final rule sets new minimum financial responsibility levels for brokers and freight forwarders, as follows:
- Brokers: $75,000
- Freight forwarders: $50,000
Evidence of Financial Responsibility
Brokers and freight forwarders must maintain evidence of financial responsibility, which can include:
- Surety bond
- Trust fund
- Letter of credit
- Insurance policy
Annual Certification
Brokers and freight forwarders must certify annually to the FMCSA that they maintain the required level of financial responsibility.
Effective Date
The final rule will take effect on July 24, 2023.
Kind regards,
R. Byrd
