“To the shady freight brokers, you’ve skirted federal regulations to take advantage of the hardworking men and women behind the wheel for too long and it’s far past time this era of screwing over truckers comes to an end,” said Todd Spencer, OOIDA president. “To the American trucker, now is your chance to hold bad brokers accountable. Jump into the arena and demand action from FMCSA. No more sitting on the sidelines complaining. If you speak up, we’ll win this fight.”
The proposal was published in the Federal Register on Nov. 20. FMCSA is proposing amendments to its property broker rules in response to petitions for rulemaking from the Owner-Operator Independent Drivers Association (OOIDA) and the Small Business in Transportation Coalition (SBTC).
Under current regulations, the parties to a brokered freight transaction have a right to review the broker’s record of the transaction, which stakeholders often refer to as “broker transparency.” Contracts between brokers and motor carriers frequently contain waivers of this right. OOIDA requested that FMCSA promulgate a requirement that property brokers provide an electronic copy of each transaction record automatically within 48 hours after the contractual service has been completed, and explicitly prohibit brokers from including any provision in their contracts that requires a motor carrier to waive its rights to access the transaction records. SBTC requested that FMCSA prohibit brokers of property from coercing or requiring parties to brokers’ transactions to waive their right to review the record of the transaction as a condition for doing business and prohibit the use of clause(s) exempting the broker from having to comply with this transparency requirement.
Though the proposed rule is responsive to the petitions in reinforcing the broker transparency requirement, the proposed provisions differ from those requested by OOIDA and SBTC. The proposed rule would revise the regulatory text to make clear that brokers have a regulatory obligation to provide transaction records to the transacting parties on request. The proposal would also make changes to the format and content of the records.
There are currently over 1k comments on the
proposal.“I’m a owner operator,” Jose O. said in the comment section. “Brokers are stealing from us everyday loads are paying less everyday, its time that there is some regulation on the brokers, please keep in mind who does 90% of the work in a load. Thank you.”
Valerie McDonald also spoke to the rule in the comment section.
“How can we be competitive when we don’t know what the rate is in the first place we’re just going off of what is offered in the offers are very low,” McDonald said. “They are low as they were 10 years ago everybody else is raising their prices. So to me that’s profiteering nothing changes over the years. They’re putting us out of business by doing this. They’ve definitely made a business out of it big business everybody wants to be a broker now. I want to know what the rules are going to be so I can decide whether to stay in business or not. I can’t afford the repairs on my vehicle because the price has increased not to mention everything else you know what it is gas diesel cost of living so that’s why we need transparency only need it ASAP.”
Joseph Ma believes that the freight industry is ripe for those wishing to steal.
“Where can bank robbers work nowadays,” Ma said. “Normal jobs? Nope. Background checks. Robbing banks? Nope. Much more difficult nowadays. Answer: the freight industry. Carriers are regulated and monitored to some extent (via highway patrol, scale houses, FMCSA, shippers, brokers). But that’s very minimal. Brokers are even less regulated. These ‘brokers’ are stealing from shippers, carriers and stealing customers from ‘good’ brokers. I do not believe the originators of ‘deregulating the freight industry’ foresaw how big of a problem these bad actors and fraud would become in the industry.”
Russell Caudell is against the proposal and believes fraud prevention efforts should be focused elsewhere.
“I am writing to oppose the recently proposed rulemaking for Transparency in Property Broker Transactions,” Caudell said. “Our efforts should be focused on fraud prevention in transportation instead of needless rules that no longer have application in the marketplace. In addition to being particularly burdensome from an administrative perspective, this rulemaking would also put a broker in the position of being in violation of the terms of many, if not most, shipper / broker transportation agreements. Putting this rule in place would provide fodder for attorneys to bring actions that at the end of the day, would make no difference and would not level the playing field in any shape form or fashion.”
Tiro Freight Solutions LLC is also against the proposal and issued this letter in the comment section:
“Dear FMCSA Rulemaking Team,
I am writing to express my strong opposition to the proposed rulemaking titled “Transparency in Property Broker Transactions” (Docket No. FMCSA-2023-0257-0001). This proposal represents excessive government overreach and fails to address the actual challenges faced by the transportation industry today.
Key Issues with the Proposed Rule
1. Outdated and Misaligned Framework
The proposed expansion of C.F.R. 371.3 is based on a regulatory framework created when brokers acted as commissioned sales agents for motor carriers. Today’s marketplace is vastly different, with brokers managing two independent transactions—one with the shipper and another with the carrier.
The original intent of these regulations, primarily to prevent freight rebating, is irrelevant in the context of modern industry practices.
2. Burdensome and Unnecessary Requirements
The transportation industry is already highly transparent, with load boards and technology platforms offering real-time pricing visibility to carriers and shippers.
Requiring electronic submissions through methods like EDI or API integration would impose significant financial burdens on brokers and carriers, with costs ranging from $2,500 to $10,000 per integration—expenses that smaller businesses can ill afford.
3. Lack of Supporting Evidence
During the COVID-19 pandemic, a period of heightened scrutiny, the FMCSA’s consumer complaint database did not record any complaints relevant to the issues this rule seeks to address. This proposal targets a problem that does not exist.
4. Legal and Confidentiality Concerns
Requiring the disclosure of sensitive pricing and business terms risks violating the Defend Trade Secrets Act of 2016.
Recent legal precedents, such as the Supreme Court’s decision to reverse the Chevron case, also cast doubt on the FMCSA’s authority to enforce such a rule.
5. Misplaced Priorities
The FMCSA should be addressing urgent challenges facing the transportation sector, such as:
Improving highway safety.
Tackling the ongoing freight fraud crisis, which costs the industry over $1 billion annually.
Developing solutions to support supply chain resilience and efficiency.
Conclusion
The FMCSA’s proposal is unnecessary, burdensome, and misaligned with the realities of today’s transportation industry. It creates significant costs for brokers and carriers while ignoring the pressing issues affecting the industry. I strongly urge the FMCSA to withdraw this rule and instead focus on initiatives that enhance safety, reduce fraud, and promote the growth and sustainability of the transportation sector.
Thank you for considering these comments. I trust the FMCSA will prioritize meaningful policies that align with the needs of the industry and the broader economy.
Sincerely,
Tiro Freight LLC”
Comments on the proposal will be accepted through Jan. 21, 2025. To comment click
here.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
I pull load from nj to palm bay fl broker coyote from broker out of ga and they paid $2800 and I find out by reciver the broker coyote have charged them$5000 for load why broker got to keep $2200 of load they are stealing our profit that to much we need to put stop on this brokers for 3yrs I don’t make no money because brokers like coyote ch robison,tql and etc are keeping driver profits ooida we need you support like always to help owners operators is not only broker this companys out of il charges drivers 12 percent of loads but they change confirmation they take out of top plus they percent servian, and Russian trucking company.thank you.
It is only fair to award the persons responsible for the majority of the work the majority of the earnings from a load. These crooked brokers can offer whatever they want to move a load. How could a driver ever know what the load pays if that information is never shared. The time has come to regulate the load brokers. Drivers must comply with all sorts of rules and regulations daily to perform their jobs. Why are the brokers any different. I feel like this issue plays a huge part in the Driver shortage in this country. When Drivers start earning their true worth the shortage of Drivers in this country will shrink substantially. If something is not done soon I will be leaving this industry. Right now for everything Drivers must sacrifice in their personal lives and the risk to their safety the rewards just don’t add up. I see the Driver shortage getting bigger rather than shrinking if Driver compensation is not brought up to the level that it should be soon.
Brokers definitely need to to provide more information in reference to how much a load actually pays. Brokers mislead drivers everyday. The agents that work carriers are actually Brokers themselves. They take at least 12% off a load. Fuel surcharge is a joke. DEF need to be calculated in fsc. Brokers and agents claim fsc and tarp pay is calculated in the rate. Brokers need to be regulated just drivers.
Brokers definitely need to to provide more information in reference to how much a load actually pays. Brokers mislead drivers everyday. The agents that work for carriers are actually Brokers themselves. They take at least 12% off a load. Fuel surcharge is a joke. DEF need to be calculated in fsc. Brokers and agents claim fsc and tarp pay is calculated in the rate. Brokers need to be regulated just like drivers.
I think it’s important for transparency in the trucking industry when it comes to brokers, I’m not saying all brokers are bad, but some are abusing the position and power they have been given by carriers, it’s time for carriers to take back that power , but we are so divided it will never happen.
Some brokers went so low with the rates, that what they offer to pay cannot cover the cost of diesel to pull that load, so now you have to take your own money to help make up the cost of diesel, I experience that picking up a load out of Florida, I just refuse it.
you want a comment, here is a comment I used to be a real bad person and would do whatever it took to feed my family, but found trucking and was to take care of my family without hurting others to do so. but now that these brokers are robbing everyone and putting every small business out on its bum , not only do I have no choice but to return to old habits but many others will have to do the same. . then once all these small businesses are gone there will be no returning. if the FMCSA does not force these brokers to follow the rules and be transparent the fault of all the fallout will be the sole responsibility of the FMCSA.
More Regulation in Trucking Business is what we need? NO! The only way you learn about loosing money is the Hard way, when You lost it making a Bad Choice! Capishe? We don’t need the government coming in. No one points a gun to our heads & makes us choose & call a broker offering $1.25 cpm load. Same with any service or product out there we spend money at. We CHOOSE the best $ option. Government regulation is going to make this worse & Shit rolls down hill to reach us. That’s going to negatively effect my good business relationship with the 6 brokers I work with. I don’t want that. Do you think government can make a failing bad decision making O/O that never read or even try to a educational business book, get successful? The fact is there’s to many Trucks out there bringing the rates down. Just plain old Business of Supply & Demand. I knew that before I got in. Ask these dudes crying if they thought of that B4 they got in. Ask the Seattle Somalia immigrants that join the harbor container trucking world about the cut throat rates they created by having to many container haulers. Comprende?
I find this truly disturbing, how is transparency going to work 2 days later it’s useless, It should be transparent as soon as companies send them to these brokers that gives us owner operators/independent contractors and chance to negotiate our rates fairly with brokers and mega carriers who use the same methods of brokers from shippers and not be black balled,we drivers out here are the backbone out here that deliver the goods throughout the United States of America I may not be in a position to get. into this fight but I’ve been trucking over 30 plus years and it’s only getting worse….
The main issue with Carriers trying to get Brokers to admit to the actual amount they except load for before they place it on a load board is: If the carrier asks the Broker will either hang up and put the carrier on a negative post on the Nationwide Bad Carrier list or just not tell the carrier. how much they except the lane for.
I can not count the times brokers happened to spill it to someone, who then passed it to me, that the broker made as much as me, owner operator, and sometimes even 1.5 times of what I got. I also know that if I got a load through a dispatcher it always paid low, and if I got a job through the company coordinator, which she sometimes for fun loaded us, I always got double the pay. To my surprise, and saying Ma’am you are allocating such a good pay to me, and she would just say This:
Ivan, I will not rip off a driver! Do you see?
The question is, where did the money go, when I got loaded by dispatch itself! I am fed up beyond any say. my engine went out in 2022, and I am still struggling to get back in business!!! Bidenomics absolutely destroyed us!
I feel as a broker is just a middle person they are reaping all the profit as they are living pretty well off of the trucker who does all the work. A broker has no idea what all is involved with moving the freight at all they low ball everything and with the cost from fuel to the rising cost of everything that we buy and pay for. It’s going to force all small businesses owners from 1 to 10 or maybe even 20 trucks running out of business.I have seen a brokers life style as I know one he lives pretty damn good always golfing and drinking goes in to his work place 1 to 3 times a month it’s time that these people start taking a pay cut they don’t deserve to live a lavish lifestyle off or the truckers as far as I am concerned they deserve about $20 an hour and let see if they go around boasting about their job then.
I was an owner operator for 18 years and it’s been my experience that freight brokers are taking roughly half of the money from each load. On numerous occasions, I would be picking up a load and a manager would come out to me and asked me why I was three days late when I just got the load the day before and did I get my truck fixed finally when it hadn’t been down after further Examination, I realized that he had been dealing with the freight broker who was lying to him. The freight broker had listed the load at a low price and no one would take it so he was lying to the customer saying the truck was in the shop, but the truth was the broker was keeping most of the money. The customer was paying a premium price for the load to be moved and the broker was trying to find the cheapest truck to haul it finally, in desperation, the broker put more money on the load and that’s when I took the load when I got to the Customer to load he was with me because I was three days late when I was on, he was also paying three times as much as I was told the load was paying the broker was keeping all the money. This is a common occurrence nowadays brokers need to be regulated quite heavily to stop.
Transparency is how it should be.We’re out here doing all the work.Thank you in the quarter of the pay
Well, there’s sitting there on the computer.Not doing nothing and gettting thousands a thousand dollars for us we are out here struggling. barely. keep our trucks on the road.
I am an owner operator and I’m absolutely for 100% transparency. For far to long the crooked brokers popping up overnight and stealing hard earned money from truck drivers who are doing 90% percent of the work to deliver loads. We are making almost all the sacrifices to insure 100% on time deliveries, not to mention 14 to 16 hr days to make it happen. In close I would say if the load pays 2k, the said brokers should have to say upfront. thank you for your time.
I think having transparency act is not going to help the trucking industry if the broker doesn’t have a limite how much commission they can keep. thanks.
the Defend Trade Secrets Act of 2016 is a loophole for the bad actors if understood incorrectly.
For example: as an O/O driver, I report to the IRS every penny I earned. That is not a public information, but all Legal Entities like Banks have access to that information.
Back to the broker transparency.
The money which broker take from the customer, for the Freight Movement may not be a public information, but
the carrier company (not a broker)
1. is a Main part of this Freight Movement transaction;
2. is a Legal Entity, and
3. must to know about the Load Price Immediately, before any negotiations.
…to keep the carrier in the dark in this situation is a big gift to those who wants to profiteer, and why would even to create such a possibilities?…
the rates is to low. can’t afford to keep my truck maintenance.
Joseph Brooks Owner Operator I’m in agreement with the broker transparency clause. it’s just sad how people are setting up shops as broker and robbing the truck drivers. it’s gotten so bad I had to pay to drive a.load from Laremie Wyoming to flagstaff Arizona. the load would not pay enough for fuel but I had to take it cause my truck aftertreatment was about to break due to the cold weather. It is very insulting when a broker get on the phone and tell you a load is only paying 600 when the same load you’ve done before paid much much more. Very very disturbing. Truckers are making less than McDonald’s employees now. it’s pitiful if your truck breaks you’re out of business cause you can’t make enough money to fix it. Just pitiful very sad rip off by the brokers.. Something need to be done ASAP!!!