US acts to root out crooked brokers and forwarders
Kizzi Nkwocha | Tue, 28 Jun 2011
New law would require financial guarantees to stamp out fraud
Two US Congressmen have introduced a bill aimed at clamping down on fraudulent brokers and freight forwarders.
The Fighting Fraud in Transportation Act 2011 would increase bond amounts and strengthen requirements before anyone can begin brokering freight.
Congressmen Russ Carnahan and Frank Guinta’s bill has won the backing of the US-based Owner-Operator Independent Drivers Association (OOIDA), the Transportation Intermediaries Association (TIA) and the powerful American Trucking Association (ATA).
Todd Spencer, OOIDA Executive VP, said: “This law would put a stop to a system that allows ruthless brokers and scam artists to continue to operate unchecked. Too often, we’ve seen deceitful brokers get away with collecting payments from shippers by cheating truckers out of what is rightfully theirs.”
TIA President and CEO Robert Voltmann said: “The FFIT Act will address serious fraud and confusion in the industry.
“It is supported by the leading transport associations in Washington, representing companies of all sizes, who are united in our belief that this will ensure that providers are properly capitalised and can meet their financial obligations.”
The Fighting Fraud in Transportation Act 2011 would require brokers and freight forwarders to carry a US$100,000 bond rather than the current requirement of $10,000.
"It would also improve transparency of those seeking to become brokers and establish “significant” penalties, including unlimited liability for freight charges, for those operating without authority.
Voltmann added: “Brokers, forwarders, owner-operators and carriers need each other, and the speed of today’s logistics marketplace means that companies must be able to reasonably rely on representations made in the terms of their agreement.
“Unfortunately, the seeping encroachment of fraudulent operations has left the legitimate industry vulnerable.”
The Fighting Fraud in Transportation Act 2011 would increase bond amounts and strengthen requirements before anyone can begin brokering freight.
Congressmen Russ Carnahan and Frank Guinta’s bill has won the backing of the US-based Owner-Operator Independent Drivers Association (OOIDA), the Transportation Intermediaries Association (TIA) and the powerful American Trucking Association (ATA).
Todd Spencer, OOIDA Executive VP, said: “This law would put a stop to a system that allows ruthless brokers and scam artists to continue to operate unchecked. Too often, we’ve seen deceitful brokers get away with collecting payments from shippers by cheating truckers out of what is rightfully theirs.”
TIA President and CEO Robert Voltmann said: “The FFIT Act will address serious fraud and confusion in the industry.
“It is supported by the leading transport associations in Washington, representing companies of all sizes, who are united in our belief that this will ensure that providers are properly capitalised and can meet their financial obligations.”
The Fighting Fraud in Transportation Act 2011 would require brokers and freight forwarders to carry a US$100,000 bond rather than the current requirement of $10,000.
"It would also improve transparency of those seeking to become brokers and establish “significant” penalties, including unlimited liability for freight charges, for those operating without authority.
Voltmann added: “Brokers, forwarders, owner-operators and carriers need each other, and the speed of today’s logistics marketplace means that companies must be able to reasonably rely on representations made in the terms of their agreement.
“Unfortunately, the seeping encroachment of fraudulent operations has left the legitimate industry vulnerable.”
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