Letters: Broker Woes

These Letters to the Editor appear in the Aug. 8 print edition of Transport Topics. Click here to subscribe today.

Broker Woes

I’ve read many articles on the proposed increase in bonds (“Bill Would Mandate Bond of $100,000 for Brokers,” 7-4, p. 3). It is clear there is a need to “shake out” the bad guys, but who is going to do that? The bad guys will remain or learn a new scam, and the honest guys will continue to pay more in bond fees and freight rates.

I’ve been around the industry for many years and started my business eight years ago. We pay all our carriers in 14 days or fewer and will continue to do so.

The $100,000 bond will hurt, but it will not put us out of business. However, why should the good guys who pay and operate in good faith suffer the consequences when the government can’t enforce anything?

Why aren’t the carriers held responsible for doing their own due diligence when issuing credit?

Who is going to protect a broker when a shipper doesn’t pay?

Does this mean government will get bigger and there will be more tax increases on our business?

Clearly, something needs to be done — but this latest proposal doesn’t seem fair. Should I pay the same amount the “megabrokers” pay for their bonds?

My idea is that bond size is based on last year’s revenue and credit rating. The $100,000 proposal will let the big get bigger, shippers will pay more and

the owner-operator association thinks they’ll get more money, but the big guys pay less per mile than anyone.

So, who wins in this situation?

A couple of years ago a political campaign was based on change. Things have changed, for sure, but I wish there was something positive about it.

Steve Turso

President

Fast Track Logistics LLC

Woodbridge, N.J.

In defense of the small broker (which I am not): There’s a situation where large importers use small brokers for a while and then move on to the next small broker without paying.

I think there should be some accountability on the part of the importer without the small broker having to take him to court in order to get paid. The trucker’s only recourse is to file against the surety bond.

As I was told by a large importer: “We realize we have no obligation to you, the trucker.”

Kathleen Dodd

President

Atlas Marine Intermodal Transportation and Warehouse Services

Bonded Carrier

Long Beach, Calif.