Freight Broker Bond / Property Broker Bond / BMC-84 / ICC Bond
PLEASE NOTE: Beginning October 1, 2013, all FMCSA regulated brokers and freight forwarders must obtain and file with FMCSA a surety bond or trust fund agreement in the amount of $75,000. For further information, see FMCSA’s Federal Register Notice dated September 5, 2013
In order to receive or renew a license, Property Brokers, Freight Brokers and Freight Forwarders must get a Freight Broker Bond / BMC-84 / ICC Bond
In the United States, freight broker bond / BMC-84 / ICC Bond are required by the Federal Motor Carrier Safety Administration (FMCSA). Their role is to guarantee that the broker will operate according to their agreements with shippers and motor carriers. If a freight broker does not comply with their contract, the carrier or the shipper may file a claim.
The three parties to the agreement are:
Principal: the freight broker
Obligee: the party requiring the bond (FMCSA)
Licensing and Home Page FMCSA
Surety: the Surety Company / Insurance Carrier
A freight broker bond is also known as a BMC-84 surety bond, trucking surety bond, transportation broker surety bond, or property broker bond. FMCSA use the term “property broker” instead of freight broker.
This first freight broker bond requirement took into effect in the 1930. In the 1970s the bond amount was increased to $10,000 and wasn’t changed until June 29, 2012 when the Congress passed the Moving Ahead for Progress in the 21st Century Act (MAP-21).
The two main changes that came with the MAP-21 were:
The freight broker bond increase – from $10,000 to $75,000
Freight forwarders must now also meet the $75,000.00 requirement
Many freight brokers were against the change because they expected they wouldn’t be able to meet the new requirement: it was a 7 X increase, moreover the previous price was set constant for about 40 years. According to FMCSA there had been too many cases where shippers and carriers had been delayed (or entirely denied) payment so the bond increase was necessary. Please apply online or download the License & Permit fillable application and receive a speedy no obligation quote.
These pages are for informational purposes only, you should always consult with legal counsel, State, County and City Departments for their specific licensing requirements.