FMCSA Seeks Comments on Forwarder Financial Responsibility Requirements

The Federal Motor Carrier Safety Administration seeks comments on its implementation of freight forwarder financial responsibility requirements under the Moving Ahead for Progress in the 21st Century Act (MAP-21), it said in an advance notice of proposed rulemaking. Among the issues on which the FMCSA wants input is under what circumstances should the FMCSA immediately suspend a forwarder or freight broker’s operating authority when its bond or trust fund falls below the required $75,000. Currently FMCSA waits 30 days before suspending that authority, a major driver of non-payment to carriers and shippers, the agency said. On the other hand, immediately suspending would “raise due process concerns, as the Agency would be prohibiting the broker/freight forwarder from lawfully operating, without affording the company a chance to respond.” FMCSA is also asking for comments on group surety bonds, surety or trust responsibilities in cases of forwarder financial failure, and entities that should be eligible to offer trust funds. Comments are due Nov. 26.