WJM Logistics LLC

04/23/2025

Find loads and trucks fast with full access to the trusted DAT Network. Freight matching designed for shippers, brokers and carriers.

11/22/2024

07/26/2024

This is what happens when you don’t wait on the green light 🚦

07/22/2024

The Federal Motor Carrier Safety Administration (FMCSA) has introduced new rules aimed at protecting truckers from brokers who take high percentages of shipping costs, potentially improving profits for carriers. These rules, which take effect on January 16, 2024, include stricter financial security requirements for brokers, immediate suspension of operating authority if financial security falls below a set threshold, and enhanced enforcement authority for the FMCSA​ (CDLLife)​.

These changes are designed to crack down on unscrupulous brokers and ensure that carriers are fairly compensated for their services. This is part of a broader effort under the Bipartisan Infrastructure Law to clarify definitions and responsibilities within the industry, ultimately aiming to protect motor carriers from financial hardships caused by brokers who fail to pay​ (FMCSA)​.

The new rules implemented by the FMCSA to regulate brokers and protect carriers include several key changes:

Assets Readily Available: The definition of assets readily available for broker/freight forwarder trust funds has been updated to include only those that are stable in value and can be easily liquidated within seven days of a payment-triggering event.

Immediate Suspension of Operating Authority: The FMCSA can immediately suspend a broker or freight forwarder’s operating authority if their financial security falls below $75,000. This can happen if a broker consents to a drawdown, fails to respond to a valid claim, or a claim is converted to a judgment. If the broker doesn't replenish the funds within seven days, their operating authority is suspended.

Surety or Trust Responsibilities: If a surety/trustee becomes aware of a broker's financial failure or insolvency, it must notify the FMCSA and initiate cancellation of the financial responsibility. The FMCSA will then publish a notice of failure. If the broker rectifies the default, the suspension notice can be lifted.

Enforcement Authority: The FMCSA has the authority to suspend a surety or trust fund provider’s authority in certain circumstances, ensuring stricter compliance and protection for carriers.

Eligible Trust Fund Providers: Loan and finance companies are removed from the list of entities eligible to provide trust funds for brokers and freight forwarders, unless they obtain certification to operate as a different type of financial institution that remains eligible​ (CDLLife)​​ (FMCSA)​.

These rules are part of a broader effort to ensure financial responsibility and fair payment practices in the trucking industry, protecting carriers from brokers who might otherwise engage in unethical financial practices.

12/29/2023

https://www.ntassoc.com/new-fmcsa-regulation-targets-fraudulent-and-insolvent-freight-brokers

12/24/2023

Shielding Our Truckers On the Road

12/18/2023

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