Brokers book shipments and receive payments from shippers, then hire carriers to move the freight. The transaction creates free cash flow for brokers, who wait to receive bill of lading confirmations before making payments to carriers. The $10,000 bond threshold created a low surety bond premium, allowing pretty much anyone with a heart beat to get bonded and broker loads.
Some cite reducing fraud as a major positive impact of the higher $75,000 bond requirement, and we see the point having been burned by a few unpaid broker invoices, where the broker took the money and ran after getting in cheap with a $10,000 bond. However the $75,000 bond isn’t going to stop a highly motivated crook from ripping off a bunch of carriers.
The real benefit will be the elimination of part-time freight broker mom's. In the past couple years we have wasted a fair amount of time trying to book advertised loads with part time work at home freight brokers that were completely incompetent, and should not be in business. When a small part time broker makes a mistake, they remain comfortably waiting in the school student drop off lane, while the carrier spends money on fuel, manpower and equipment on a dispatch error. The reduced risks of fraud from MAP-21 are important, but eliminating the part-time freight broker mom's will save carriers from significant operational mistakes.