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Who gets paid? * USA - If a truck broker goes bankrupt?
"Obtaining payment from brokers for shipments transportes in insterstate commerce" Applicable statutes under Title 49, U.S. Code
Wichita, KS,USA -International Shipping News, by Lynda Applegate -October 23, 2008: -- I made some statements in an earlier blog that truckers will probably get stiffed if Greatwide Logistics goes out of business. Later, I thought it best to research the regs.Things haven't changed much in 30 years. Here's the important stuff from the CFR 49, the bible of the trucking industry. The broker is required to maintain a surety bond or trust fund, but it doesn't say in what amount. Whatever the amount, it won't be enough to cover everyone if they go bankrupt. OBTAINING PAYMENT FROM BROKERS FOR SHIPMENTS TRANSPORTED IN INTERSTATE COMMERCE - Applicable statutes under Title 49, U.S. Code: The Federal Motor Carrier Safety Administration does not have the authority to order payment of monies owed on brokered loads. The law does require that brokers be licensed and maintain surety bonds or trust fund agreements for the protection of shippers and carriers when disputes arise. A broker may be requested by a carrier or shipper to state in writing whether it is acting as an agent of the carrier or shipper. However, there are no federal regulations containing specific guidelines relative to the legality of an agency relationship between carriers and brokers or shippers and brokers. Therefore, courts generally look to State laws of agency relationships to establish when payments to a third party should be considered. A motor carrier may pursue payment from a shipper when a broker fails to remit compensation to the carrier or the carrier may take the matter to court to determine liability...
Labels: freight brokerages
posted by Unknown @ 10:02 AM
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