Archive for March 19, 2014

Transport Brokers Now Required To Be Bonded Up To 75K

auto transport

In July 2012, the Federal Motor Carrier Safety Administration (FMCSA) announced new regulations after the President signed into law the Moving Ahead for Progress Act-21. The new law included a series of changes to the old FMCSA programs, which amended the guidelines for transport brokers and freight forwarders who are bound by the FMCSA rules.

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. The new guidelines are meant to increase consumer protections in the event of damage during car transport.

These statutory provisions took effect on October 1, 2013, and all brokerage firms dealing with transportation are bound by this new regulation.  Here is a link to the new regulation

Aware of the need for increased consumer confidence and protection, Ship A Car Direct had already been in full compliance well before this new regulation was signed into law.

Ship A Car Direct is taking an active role in keeping the auto transport industry safe, trustworthy, and reliable.  The result is more customer protections, satisfaction, and a better overall reputation for that car shipping industry.

When you are looking for a car shipping company, choose Ship A Car Direct – Home of the industries only Damage Free Guarantee.

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Can I Just Book the Car Carrier Directly?

Carriers vs Brokers or, Why can’t I just book the trucker directly?
Car Carriers
If you are like many first-time shippers, you may be surprised to learn the person who quotes your auto transport is not going to be driving the truck. He or she is in an office with a phone headset, and nowhere near a truck. In fact, everyone responding to your quote request is a broker who uses that quote to contract a carrier. Not everyone will tell you that. Some brokers are perfectly content to let you make assumptions about the industry. And some are aggressively telling you whatever you want to hear.

It may seem more convenient and cost effective for you to just deal with the guy with the truck. The truth is, the truckers are busy driving the trucks. They don’t have time to take phone calls, to haggle, to explain the process – they have to drive and keep driving. As soon as they finish one run, the have to turn around and hit the road again. There aren’t office hours for truckers.

All truckers find their loads through broker listings on the industry hub: Central Dispatch. That is where all of the waiting jobs are listed, and where truckers can pick and choose the routes – and the pay – they want. Frankly, they respond to the easiest, best paying jobs. They will lock down a good contract immediately. Jobs that have lots of time restrictions, are located in rural areas, or are for super-sized vehicles or offer low pay don’t get contracted. Or, if they do get contracted, it’s to a desperate carrier.

That’s why you want a reputable broker handling the contract. A good broker will recommend a realistic, market price to confirm a good carrier. A good broker will check the carriers documentation to make sure their license and insurance are up to date. And a good broker has a history with carriers, knowing which ones have responsible track records and which are loosey-goosey with safety. A good broker is available during office hours to answer your questions, to provide you with industry information and realistic expectations.

Of course you will have access directly to your driver later in the process, but carriers do not offer estimates directly or prepare customers for pre-transport. That is a reality that has evolved logistically for both the good of the driver and the good of the customer. Your broker is there for a reason, and that relationship is industry standard.