Trinity Transport, Inc. Increases Surety Bond Protection to $100,000
Seaford, Delaware, April 14, 2008 – In response to industry and economic changes, Trinity Transport, Inc. of Seaford, DE, a third-party logistics company has chosen to upgrade the protection offered to its shippers by increasing the value of its property/surety bond from $10,000 to $100,000. A surety bond ensures the financial responsibility of brokers by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements for the supplying of transportation by authorized motor carriers.
Trinity Transport, Inc. is licensed by the Federal Highway Administration (FHWA) as a broker arranging the movement of materials by motor carrier. In this capacity, Trinity is currently required to meet certain qualifications to conduct business, which includes the compliance of a $10,000 surety bond. “In support of the Transportation Intermediaries Association (TIA) and other transportation lobbyists, “said Robert Farrell, VP of Corporate Risk, “Trinity has chosen to proactively get in front of the bill before Congress and do so in a voluntary way through the TIA. Eventually, all brokers will be required to increase their respective surety bonds.”
“The legal issues that go into defending brokers are centered on claims and negligence. Some carriers have $50,000 some have $100,000 in cargo insurance. If we put a carrier on a load and the insurance is not sufficient our contingent policy kicks in. However, the consignee can come back on Trinity for the ‘full value’ of the load. Trinity also has Errors and Risk Insurance for negligence issues. “ said Robert Farrell, ”In order to do business today brokers need to make sure their surety is sufficient in case a carrier or consignee files or co-files on our bond.” Trinity constantly looks for areas to provide greater value for its customers. Trinity believes the benefit for its customers outweighs the additional costs of increasing their surety bond.