3PL Perspectives Hot Article: The Value of Working with Reliable Trust and Bond Providers
The 3PL industry is seeing increased shipper requirements of financial security, and TIA is working to help shippers understand where unreasonable requirements only hurt their bottom line. Some shippers are requiring brokers and forwarders to have bonds or trusts up to $300,000. The benefits to the shipper for such a requirement are unclear: there is no market for a $300,000 bond, and the bond or trust only ensures payment of the carrier. The result is that shippers, who are stretching their own payment terms as long as 120 days, are putting the expertise and capacity of 3PLs out of reach over a payment guarantee for carriers.