Broker group takes wild swings at broker transparency proposal

We’ve all seen it either in real life or at least on television – some angry, bordering on unhinged individual throwing wild punches in a fit of rage, hitting nothing. It’s comical to watch.

And we’re seeing a reaction like that to the Federal Motor Carrier Safety Administration’s newly released proposed broker transparency rule. In short, the proposal shores up existing regulations already on the books. The regulations intend for all parties in a freight movement agreement to have access to the details of the transaction.

For years, brokers have pouted and channeled their best pouty teenager tactics to get around the clear intent of this regulation.

“Fine, you want to see the paperwork, come to my office and look at it.” I imagine a door slam following the obstinate statement for dramatic effect.

Clearly, the Owner-Operator Independent Drivers Association is pushing not only for enforcement of the regulation but also for expansion of electronic access to records. I mean, come on, email has been around for decades.

It’s not like this is a big ask.

Unless you ask the Transportation Intermediaries Association – a group representing brokers. It lost its mind following the announcement from FMCSA.

Let’s break down a few of the more ridiculous comments.

“TIA has consistently maintained that the broker transparency regulation, rooted in the 1980s, is obsolete and un-American.”

Wow, OK.

I’m genuinely curious whether the predatory practice of skimming the lion’s share of the freight rates for pushing a few buttons is considered “American” or justifies screwing over truckers who actually do the work. Putting others out of business and getting rich in the process – that’s not much of a partnership.

“This rule has no place in today’s highly transparent marketplace.”

Seriously, I feel for those who hopefully had to hold their nose when writing such nonsense. If they actually believe it, then I have a super cheap bridge for sale, because that statement is delusional.

There is nothing transparent about the rates brokers charge for being a middle man. The broker industry has been rife with fraud and less-than-honest business practices since the dawn of time.

Among the more telling signs that transparency is not a goal for brokers are the waivers written into broker-carrier agreements.

Brokers demand truckers give up their rights under regulation 49 CFR 371 – the broker transparency requirements. Those brokers inserting language in their contracts have absolutely zero interest in transparency.

“During the COVID-19 pandemic, when broker transparency was last debated, the National Consumer Complaint Database recorded zero complaints related to this issue.”

This is 100% pure diversion. The percentage of people who know that the National Consumer Complaint Database exists and what it is for has to be in the single digits. It’s a poorly named, poorly promoted and – dare I say – almost useless program.

I cannot tell you how many times I have reached out to FMCSA looking for stats on enforcement activities related to complaints submitted to the program. Most times, the answer was generally nil.

But that isn’t the full story. TIA points to 80,000 claims of complaints related to freight fraud and unlawful brokerage activities – without any enforcement. Geeze, TIA, don’t you think if there were more transparency, we could root out the “freight fraud and unlawful brokerage activities?” You might actually know with whom you’re doing business. Just a thought.

The reality is brokers have run around unchecked and unapologetically getting rich off the hard work of truckers. (Although in fairness, there are good brokers out there who genuinely work with motor carriers in a mutually beneficial business arrangement.)

These claims from TIA following FMCSA’s announcement of the proposed rulemaking to perfect the transparency rule are not surprising. The group has been fighting transparency for decades. But the situation has gotten worse and, frankly, this rulemaking is way past due.

So, truckers, TIA claims there are no complaints. Let’s fill up a docket with them. Here’s a link. Enjoy. LL