The Federal Motor Carriers Safety Association is taking some feedback, both positive and negative, regarding a rulemaking proposal.
The 78-page document garnered some negativity in some circles.
The Transportation Intermediaries Association (TIA) issued a press release on Tuesday stating in part that it is “deeply disappointed by the FMCSA’s decision to release a Notice of Proposed Rulemaking (NPRM) on broker transparency.”
TIA stated that FMCSA’s priority should have been what it called “a far more pressing issue” of freight fraud.
The release pointed out that freight fraud costs the U.S. supply chain more than $1 billion annually.
“This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA’s release stated.
“TIA has consistently maintained that the broker transparency regulation, rooted in the 1980s, is obsolete and un-American,” the release added.
“Originally implemented in an era following trucking deregulation when brokers acted as commissioned sales agents for motor carriers, this rule has no place in today’s highly transparent marketplace. Any attempts to expand or enhance these outdated provisions should be shelved, and the FMCSA should redirect its attention to fulfilling its primary mission—ensuring safety on our highways and addressing rampant freight fraud.”
It was also pointed out as notable that during the COVID-19 pandemic there were zero complaints registered to the National Consumer Complaint Database.
“In stark contrast, there were more than 80,000 complaints related to freight fraud and unlawful brokerage activities,” TIA stated. “This stark disparity highlights the misaligned priorities of the FMCSA under the current administration.”
“TIA opposes this NPRM and any attempt by the Biden administration to overreach into commercial business activities,” the release stated. “Regulations like these threaten to erode the foundations of American capitalism, stifling innovation and efficiency. FMCSA must abandon this regulatory overreach and focus instead on its core mission: improving safety and addressing the rampant freight fraud plaguing the transportation industry.”
There were more responses to TIA’s decision as well.
Small Business in Transportation Coalition Director James Lamb called the FMCSA “misguided.”
“The move toward rate transparency being a ‘duty’ of broker means nothing unless FMCSA also says brokers cannot waive their new regulatory duty without such a waiver constituting ‘evasion of regulation’ in furtherance of ‘unreasonable restraint of trade’ in violation of the Sherman Antitrust Act,” said Small Business in Transportation Coalition Director James Lamb. “Without expressly prohibiting such contractual waivers, FMCSA is allowing brokers to continue to evade regulation and deregulate themselves. The status quo remains. While Congress has explicitly allowed shippers and carriers to agree to waive certain requirements, Congress has not passed a law allowing the same for brokers. FMCSA already knows this and they have determined brokers are NOT shippers. FMCSA is therefore misguided in their logic and has this backwards. There does not have to be a law specifically prohibiting brokers from waiving because there already is a general law called Evasion of Regul ation. There would need to be a law allowing brokers to waive, and no such law exists.”
OOIDA president Todd Spencer came out in favor of the FMCSA’s announcement.
“Four years ago we asked FMCSA to improve broker transparency and we welcome this overdue Notice of Proposed Rulemaking. We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations.” Spencer said. “As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment. We look forward to responding to FMCSA’s request for feedback, and most importantly, will continue to press the agency, lawmakers, and other regulators to make all resources available to enforce these regulations and ensure that brokers finally play by the rules.”
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
