• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Opinion: Four Tips to Renewing Your Freight Broker Bond

Opinion: Four Tips to Renewing Your Freight Broker Bond

October 2, 2017
Todd Bryant, president and founder, Bryant Surety Bonds

Every year, freight broker bond renewal deadlines for many brokers fall in early October, and a number of others follow in November and December. This typically means a lot of work for sureties and the Federal Motor Carrier Safety Administration (FMCSA) - which can create delays. In order to make the deadline brokers are advised to renew as early as possible.

Four tips to streamline the process

1. Remember the deadline. If you tend to forget deadlines, make sure to be reminded of this one because missing it can create difficulties for your status as a licensed freight broker. Typically sureties will remind their clients well in advance of a bond renewal deadline — often once within 90, and then within 60 and 30 days of the deadline.

If you haven't received notice of your surety, play it safe by double-checking your bond expiration date. If you operated as a freight broker in or before 2013, it is highly likely you will need to renew your bond in October or latest by December 1.

2. Renew early to avoid delays. While you should renew your bond no later than 30 days before its expiration date, it's much better to renew earlier. With so many brokers having to renew their bonds around the same time, delays can and often do occur.

Due to the FMCSA's requirement that sureties notify it 30 days prior to a bond's expiration, things can sometimes get complicated for brokers who renew in the last minute. To avoid delays and complications, strive to renew your bond as soon as you get notified by your surety or, roughly, between 60 and 30 days prior to its expiration date.

3. Improve your credit score to improve your rate. Generally, if you want to get a better rate on your bond, you need to make improvements in one or more of the various factors that influence bond cost. The most important such factor is your personal credit score. By regularly making improvements there, you can expect a year-over-year improvement in your bond premium as well.

This year in particular, your credit score is likely to improve on its own. As of July 1, tax liens, civil judgments and other civil debts have been excluded from credit reports. As a result you are also likely to see a lower premium on your bond. To be sure that any negative items have been removed from your credit report, contact a credit report to get your free yearly report.

4. Check your bond premium before you renew. Bond cost can vary from one year to the next. Typically, the cost of your freight broker bond is determined by your surety when you apply. Your surety considers your credit score, your financial statements as well as other personal financials in determining your premium.

If you've improved your credit score but haven't seen much of an improvement in your rate or are generally unhappy with your bond cost, you could request a quote at another surety agency for comparison. When requesting a quote at another surety, make sure you choose an agency that performs soft pulls of your credit. Each hard pull negatively affects your credit.

Second phase of the URS postponed

Apart from renewing your freight broker bond, you may also need to update your information with the FMCSA. While the Administration's intent was to launch the Unified Registration System (URS) this year, this has been executed only in part. Currently, only first-time applicants with the FMCSA can use the URS to complete and submit their application, including the submission of all relevant documents and forms.

For brokers who are already registered, updating your information or submitting forms is for now limited to the processes and procedures that were previously already in place. The FMCSA has rescinded its initial projection for the roll-out of the second phase of the URS, though it has not abandoned the project itself. This is not directly related to surety bonds, as sureties post their clients' bonds electronically with the FMCSA but concerns any other forms you may be required to submit.

New requirements for food and animal transportation in 2018

In other news, freight brokers who have not yet begun preparing for the new requirements of the FDA for transporting food and animals should take notice. The Final Rule on Sanitary Transportation of Human and Animal Food which came into effect for the biggest carriers, shippers, loaders and brokers on April 6, 2017 will come into effect for the rest of the industry on April 6, 2018. Brokers need to align themselves with these requirements as, according to the rule, they are considered equivalent to shippers when it comes to such transportation.

To help businesses meet the requirements of the rule, the FDA has provided a number of resources on its website among which is the Technical Assistance Network (TAN). The TAN includes information on all central questions related to the implementation of Food Safety Modernization Act (FSMA). Brokers who cannot find the answers to their questions, can submit such questions to the TAN.

Todd Bryant is the president and founder of Bryant Surety Bonds.

Source: Bryant Surety Bonds

RELATED CONTENT

RELATED VIDEOS

Logistics Freight Forwarding/Customs Brokerage Automotive
KEYWORDS Automotive Freight Forwarding/Customs Brokerage Logistics
  • Related Articles

    It's Time to Renew Your Freight Broker Bond

    A Freight Broker’s Cheat Sheet to Regulations and Compliance in 2018

    Opinion: End Your Global Supply Chain Paper Chase

  • Related Events

    How Every Shipper Can Benefit from Modern Drop-and-Hook: Four ways to get nationwide, flexible, and quality drop capacity with unparalleled visibility

    Let Increased Visibility Ignite Your Supply Chain to Become More Resilient and Agile

Todd Bryant, president and founder, Bryant Surety Bonds

Opinion: Four Tips to Renewing Your Freight Broker Bond

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Biden Sees Shots Widely Available by Spring; Third of Staffs Will Work From Home Permanently

    Coronavirus
  • Car Industry

    A Year of Poor Planning Led to Carmakers’ Massive Chip Shortage

    Technology
  • U.S. Vaccine Rollout Hindered by Faulty Coordination, Messaging

    WHO Fumes at Western Drugmakers As China Fills Vaccine Void

    Coronavirus
  • Third-Party Cybersecurity

    What Vaccine Supply Chains Must Do to Protect Against Cyberattack

    Coronavirus
  • California Trucker

    Why One Southern California Trucker Stays Independent

    Logistics

Digital Edition

Scb home issue 27

2020 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

  • LSP Wows Global Client, Quickly Advances to Become End-to-End Provider

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact GEP Honeywell Intelligrated
Infor Logility Magnitude Software
MPO Old Dominion Oliver Wight
OpenSky Ports America Purolator
QAD Precision Red Classic Riskmethods
TGW Systems Transportation Insights Watson Land Company
Westfalia Technologies Workjam Yang Ming
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing