Things Carriers Should Know: Load Coverage and Getting Paid
Over the years, the government has placed restrictions on drivers to keep the roads safe. It’s easy to think that the only thing our legislators care about is the other person, but they also consider protecting drivers against unethical brokers. In the Motor Carrier Protection Act of 2010, Congress passed laws which related to the trucking industry.
What Is the Motor Carrier Act?
The new rules that have been going into effect since the bill was passed are designed to protect truckers. The industry was rife with brokers who didn’t pay on time, or even filed bankruptcy before making payments to carriers. One major change of the Act was to increase the surety bond from $10,000 to $75,000. It also:
- Increased penalties for brokers who operate without a license
- Created licensing requirements for brokers that must be renewed annually
- Created guidelines for the companies that provide bonds to brokers
- Established clarity in the industry, concerning who must have the broker’s license and bonds when arranging freight
What Does This Mean for Carriers?
Carriers have more protection when taking a load. Freight Tec takes this law seriously and maintains a $100,000 bond and ensures that its carriers get paid for each load in a timely fashion. We carried this bond amount before it was required to demonstrate the creditworthiness of our company. You can depend on quick payment from us.
Working With a Legitimate Broker
Even with the Motor Carrier Act, there are still brokers who try to take advantage of carriers. Inbound Logistics, providing industry information since 1981, still advises that carriers know the broker who they are using. Ask these questions before signing with a broker:
- Is the broker registered with the proper authorities? Freight Tec maintains all applicable licenses.
- Does the broker carry insurance? Freight Tec maintains a policy, which can be checked through the insurance company to make sure it’s in effect.
- Does the broker have a surety bond? As mentioned, Freight Tec maintains a surety bond of $100,000. This, too, can be verified.
- Check to see how long the Broker has been in business. MC numbers are a good indication of how long a company has been in business.
- Check with industry loadboards’ credit ratings and reports about the broker before you work with them.
Whether you’re an owner-operator working with one of our agents or have a full fleet of trucks that provide shipping for our clients, you are going to get paid. We want to take care of you. Trust us, not because we say that you can, but because we back up our words with the licenses and bonds to ensure you won’t lose money, and because we’ve been doing treating carriers right for 25+ years.