Despite a historically slow economic recovery from the latest recession, the trucking industry is expected to have solid growth in 2015 and the years to follow. Even with tighter trucking restrictions, higher equipment costs, and a continued truck driver shortage, freight growth is expected to average about 4% for the remainder of the decade.
As in many industries, with increased growth comes increased regulation. Since October 2013, freight brokers and forwarders have experienced an increase in their required Surety Bond amounts from $10,000 to $75,000, along with a corresponding increase in premium. These bonds are regulated by the Federal Motor Carrier Safety Administration (FMCSA). Brokers that do not comply with the bond requirement may have their broker authority revoked.
Why are Surety Bonds required? A bond is merely a guaranty that the freight broker will demonstrate financial responsibility and pay legitimate freight bills as agreed upon in the contract. This guaranty is backed by the surety company’s financial strength. If the bonded broker defaults on payment, a claim may be filed. If the broker is found at fault, the surety company will look to the broker for payment of any outstanding bills. Because the broker will ultimately be responsible for paying all claims, the underwriting on a Freight Broker Bond is based upon the broker’s credit history, reputation and financial strength.
Rising revenues in trucking and increased freight shipments across the nation point to a particularly strong future for freight trucking in 2015, despite an anticipated driver shortage. Make sure your surety bond needs are properly identified and in legal compliance each year by working with a solid, knowledgeable surety company that you can trust. SuretyGroup.com has been writing Freight Broker, DoD and Oversize/Overweight Freight Bonds for more than 35 years throughout the United States. Our team of experienced surety agents can help you navigate Freight Bond requirements. We have an in-house underwriting authority which means we are able to offer competitive, low rates, quick approvals, and immediate bond delivery. In most cases, we can approve your application today and deliver your bond tomorrow. If you have any questions about Freight or other bonds, please call our surety experts today at 1‑844‑432‑6637.