Freight Management Services
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900 Dudley Avenue
Cherry Hill, NJ 08002
Phone: (856) 317-9600
team@tuckerco.com
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Letter to the Editor
By Jeff Tucker, CEO Tucker Company
March 7, 2005
Broker Bonds
In its response to my opposition to raising broker bonds (April 4, “Antiquated Broker Bonds”) the Owner-Operator and Independent Drivers Association ignored my points and seemed to lump me in a dishonest, illegitimate “bad actor.”
Nevertheless, when ABC Business contracts with XYZ Business, and ABC performs a service for XYZ without cash up front, ABC just lent money to XYZ. The moral: you better know to whom you’re lending your money.
Leading, ethical brokers like my fellow board members at TIA oppose increasing the broker bond, as do some of the nation’s leading carriers operating brokerages.
We check credit 100 percent of the time, stay on our accounts receivable and refuse business when credit looks bad. If more carriers took the time to verify that a caller is legitimate business, let alone do a credit check, there would be no issue here.
I find OOIDA’s petition to raise the broker bond reprehensible and irresponsible to our industry. A higher broker bond will be punitive to ethical brokers, will drive many out of business and will create unfair barriers to entry. Even worse, it will leave the bad actors unharmed, since most of them don’t have any bond, and the most carriers don’t check anyway.
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