What is Freight Broker Bond?There are

requirements in the transportation industry in Australia which freight brokers can’t seem to do without. This is because these requirements help to certify and confirm their claims as freight brokers in the eyes of the law. One of such requirements happens to be freight broker bond. You may be wondering what this requirement is all about. You don’t have to bother again as this post will be aimed at explaining what you may need to know about freight broker bond in Australia. This will help you to make your choice in the process of having to consider which freight broker to select to handle your shipping.

What It Is Actually All About

Freight broker bond is more of a surety body which is required to be purchased by freight brokers. It is their condition for getting licensed and recognised by the law. This means that a failure to do that may lead to the license of a broker being revoked. This is a bond which creates that trust and credibility for freight brokers as it establishes them as experts. The reason for this is being the fact that they must have shown that they will work in alignment with the rules and regulations that are guiding the movement of goods and services within and outside of Australia.

Its Core Requirements

As a freight broker, such bond is very important because that is the only way to be in the business of shipping goods. As of the year 2013, the sum required to purchase the bond in Australia was $10,000. However, as time went on, the amount got raised to $75,000. Another name for this bond is BMC-84.

What is the Essence of the Bond?

It should be noted that the bond is not meant to protect freight brokers. Rather, they are to protect the interest of shippers that who must have entered into one or two agreements with freight brokers to have their goods transported.

How to Find Out Brokers that Have Active Surety

You could get into some troubles with the law being passed by the government of Australia if you happen to be dealing with a broker who doesn’t have an active surety. Always find out if the surety of a broker is still active. If you want to find out, you can visit the official website of the FMCSA. This website will be able to inform you of whether the surety bond of a broker is still active or not.