MAP 21 Truckers and Brokers

MAP 21 is the new Law that changes almost every relationship in buying and selling trucking services. This Bill was once called the motor carrier Protection Act. The New LAW reflects transparency in the relationship between carriers and brokers and stops all broker predation on the carriers’ revenue stream.

Double brokering (two commissions taken from carriers’ revenue) is unlawful.

KNOW THIS:

No broker can ever take a load from a motor carrier.

Truck Brokering, as you understood, is OUTLAWED.

The only “BROKERING” allowed is BY Licensed Property Brokering.”

IMMEDIATE MAP 21 IMPACT FOR TRUCKER’S: EFFECTIVE OCT 1ST

No trucker may hire for loading another trucker to balance a dispatch, except by long-term lease.

Truckers can only take a load off a load board for brokering purposes; they can only haul that load in their equipment.

No trucker may take possession of cargo for brokering purposes.

Trucker’s name may only appear on a bill of lading for a cargo they own.

IMMEDIATE MAP 21 IMPACT FOR BROKERS: EFFECTIVE OCT 1ST

BROKER SURETY BOND- raises the Surety Bond for existing and all new Licensed property brokers from $10,000 to $75,000

EVERY LICENSED BROKER- must re-apply for their Bond and be Licensed every five years.

ALL NEW BROKER LICENSE applicants must receive training or prove three years prior brokering experience to qualify for License and Bond.

PENALTIES for unlawful brokering up to $10,000/load or subject to a right of private action.

NO BROKER MAY NEVER WORK WITH ANOTHER BROKER without an ACTUAL CO – BROKERING Agreement can ONLY allow two brokers, splitting one commission. The broker with the load has to pay the actual hauling carrier.

NO BROKER CAN TAKE A LOAD from a trucking company.

IMMEDIATE MAP 21 IMPACT FOR SHIPPERS AND BROKERS: EFFECTIVE OCT 1ST

SHIPPERS who allow double brokering SUBJECT TO PRIVATE RIGHT OF ACTION.

SHIPPERS may only install the actual hauling carrier’s name & MC numbers in the BOL carrier section.

LOGISTICS COMPANIES, warehouse workers, forwarders, some NVOCC, and others listed MUST obtain a broker’s license, and post a bond, TO ARRANGE TRANSPORTATION.

BROKERS ARE SHIPPERS; They are not carriers.

ALL SHIPPERS/BROKERS SUBJECT TO MAP 21, even for EXEMPT commodities.

About COMPLIANCE

TRUCKING AUTHORITY AND BROKERING LICENSE MUST BE SEPARATE REGISTRATIONS. A motor carrier must apply for a bond and license to continue brokering. The two companies are entirely separate, with different names, FEIN, and may not even share payroll. CARRIER NOT IN COMPLIANCE subject to the private right of action. It’s open season on a motor carrier that does not comply.

Contracts for brokering will have to be written to account for the fact that Brokers who act as motor carriers to get freight consideration are motor carriers. Brokers do not own cargo, do not “hire” pages, and are not insured for that risk.

Brokers are shippers and cannot assume any transportation act reserved to the mode of transportation, such as trucker, with that broker becoming liable for the outcome of that Act.

Brokers have no freight rates of their own as they are not a “MODE” of transportation, may not assess a fuel surcharge to a shipper unless the motor carrier considers that FSC charge, may not have any beneficial interest in the carriers’ cargo (49 USC 80101 ), and must pay the motor carrier for every load, regardless of claims.

A broker is a shipper and must pay the carrier’s freight bill in full, then sue on behalf of the shipper to recover freight charges plus the claim for loss. Brokers have no interest in the cargo without being responsible for that cargo.