Truckers, brokers have spoken

Truck drivers and brokers have spoken. Now, it’s up to the Federal Motor Carrier Safety Administration to determine whether it will move forward a proposal to strengthen existing broker transparency regulations.

In November 2024, FMCSA issued a notice of proposed rulemaking that would:

• Require brokers to keep their records in an electronic format
• Require that records contain information about charges and payments connected to the shipment, including a description, amount and dates, as well as any claims connected to the shipment
• Affirm that brokers have a regulatory obligation to provide transaction records
• Require brokers to provide an electronic copy of records within 48 hours after a carrier makes a request

The public was originally given 60 days to comment on the proposal, prompting about 5,000 comments.

After a change in administrations, the comment period was opened for another month, through March 20.

In all, nearly 7,000 comments were submitted.

Comments from truckers

Generally, truck drivers told the agency that the ability to view transaction records would promote fairness and prevent fraudulent claims.

“I strongly support increased transparency in property broker transactions as a necessary step toward fairness and accountability in the trucking industry,” Tajinder Singh wrote in comments submitted on March 20. “For too long, motor carriers and owner-operators have operated with limited visibility into brokered transactions, often resulting in disputes over payments and a lack of trust in the system.”

Doug Ambeau told the agency that transparency would create fair competition and that no waivers should be allowed.

“As an owner-operator, I believe rate transparency is crucial for a fair and equitable marketplace,” he wrote. “Transparency ensures that carriers – who face significant operational costs – are adequately compensated for their services. Transparency does not dictate broker earnings but ensures carriers have the information needed to make informed decisions. Brokers’ claims of unsustainable margins are unfounded; reasonable markups will not be threatened by transparency but will instead encourage equitable competition.”

The Owner-Operator Independent Drivers Association told the agency that strengthening and enforcing existing broker transparency regulations would help level the playing field between brokers and motor carriers.

“Ignoring 371.3 regulations has directly led to an asymmetry of information between carriers, shippers and brokers,” OOIDA wrote. “An asymmetry of information not only creates an inequitable playing field between carriers and brokers but jeopardizes carriers’ ability to know if they are hauling fair-value loads.”

Comments from brokers

Brokers argued that broker transparency regulations are outdated.

“Do you all have belief in a free market economy or not? This level of regulation is how you kill capitalism,” wrote Tim Wilson.

The Transportation Intermediaries Association called the proposal “un-American,” and numerous brokers commented that it “undermines capitalism.”

“TIA strongly opposes this notice of proposed rulemaking,” the group wrote. “Simply put, FMCSA’s amplification of what is already an outdated, unnecessary and burdensome regulation is a solution in search of a problem.”

However, the rule would not prevent each party from negotiating the best deal, as the records wouldn’t be provided until after a transaction had already taken place. The ability to view completed transaction records would help the parties sort out any billing discrepancies, but it would not set the rates.

What’s next?

FMCSA will begin reviewing the comments and will determine whether to move forward with a final rule. If the agency decides to do so, it could advance the current proposal or make amendments based on the comments received. LL