Should freight brokers' required bond amount vary according to company size?

Overdrive Radio

Manteca, California, Gill Freightlines small fleet owner Surinder Gill's family's trucking lineage traces back through 60 years of OTR work done by his father, Gurmail Singh Gill, over more than one continent. The elder Gill hauled first in his native India, some in the Middle East, and finished out his career in the United States. Surinder Gill had dipped his feet in trucking as a dispatcher by the time his father passed in 2018. "I wanted to do something to honor my father," Gill said. "How do I honor my father and his legacy? So we purchased a truck and got a trailer, and I put his photo on the back." His trailers to this day feature that photo and the "In loving memory" text for Gurmail Singh Gill. "He'll always be on the road, in a way," as his son puts it in this edition of Overdrive Radio, telling that story but much else besides. Small fleet owner Gill was in part the subject of Overdrive Executive Editor Alex Lockie's reporting on the now-infamous collapse of the Convoy company as a going brokerage concern this past Fall. That reporting told the tale of a variety of owner-operators and small fleet owners just like 28-year-old Surinder Gill who, months following the abrupt shuttering of Convoy in October, remained unpaid for in some cases thousands’ worth of work hauling: https://www.overdriveonline.com/business/article/15666087/convoys-unpaid-carriers-signing-back-up-to-haul-loads In Gill’s case, unpaid invoices were to the tune of around $35,000 in dedicated contract loads his several company drivers and a larger number of owner-operators pulled for big names in canning and food generally, like the Post company. Convoy's debt to Gill alone is nearly half of the worth of the required $75,000 bond any broker is required to have to cover claims. As you'll hear in the podcast, Gill believes that bond amount shouldn't but a static number but rather dependent on the amount of business a broker handles. Larger the broker, larger the bond. Convoy, readers will recall, had a valuation in the billions, according to pre-collapse reports. Given the volume of freight -- and money -- that flowed through the broker, Gill asks, shouldn't they be required to hold a bond much, much higher than $75,000? By the time he got to the bond company with his own claim, the full amount in the surety had already been kicked to court deliberation on just who would get paid, and how much. As of this past week, Gill remained entirely unpaid for those final loads, though the small fleet owner offered up a bit of information he'd learned since the conversation featured in this podcast. Contact made with the Hercules Capital company, responsible for business debt incurred by Convoy, yielded a name there for everything having to do with the shuttered brokerage. “I have reached out to Hercules Capital,” Gill said, “and was given the contact of a Greg Peterson” for everything Convoy-related with the company, a venture funding company that took control of all of the imploded company but for the technology platform. That platform, also previously reported, was sold to Flexport and rebooted for freight brokered through them, a fact that frustrates Gill and others among the unpaid carriers who’d worked with Convoy for years, as you'll hear.