Indy truckers push FMCSA to end evasion of broker transparency rules
THE Owner-Operator Independent Drivers Association (OOIDA) has filed a petition with the Federal Motor Carrier Safety Administration (FMCSA) urging immediate action against the evasion of federal transparency regulations by unscrupulous brokers and improve broker transparency
THE Owner-Operator Independent Drivers Association (OOIDA) has filed a petition with the Federal Motor Carrier Safety Administration (FMCSA) urging immediate action against the evasion of federal transparency regulations by unscrupulous brokers and improve broker transparency.
Brokers are third-party entities that contract with truckers to haul freight for shippers, commonly known as broker-carrier agreements. Federal regulations require brokers to maintain detailed records of their transactions with motor carriers, reported the American Journal of Transportation.
'Small-business truckers who have helped keep the nation safe, healthy and supplied through the COVID-19 pandemic are now struggling and worried that their businesses will not survive.' said the Kansas City, Missouri-based lobby.
'Brokers have been deliberately skirting federal transparency regulations for decades,' said president and CEO Todd Spencer. 'We certainly don't think exempting yourself from federal regulations is legal, but this is precisely what is happening. It has to stop.'
Motor carriers have the right to view this information, which includes how much a shipper is paying a broker and how much the broker is then paying the motor carrier.
The OOIDA petition explains that brokers often find ways of circumventing federal regulations (49 CFR ??371.3) that require them to keep records of transactions and make them available to carriers on demand.
OOIDA petitioned FMCSA to strengthen the regulations in 49 CFR ??371.3 by doing the following:
1. Require brokers to automatically provide an electronic copy of each transaction record within 48 hours after the contractual service has been completed.
2. Explicitly prohibit brokers from including any provision in their contracts that requires a carrier to waive their rights to access the transaction records as required by 49 CFR ??371.3.
Said Mr Spencer: 'Brokers must no longer be given a free pass to avoid compliance with federal transparency requirements and those who continue to evade the regulation.'
OOIDA represents the interests of small-business truckers and has 160,000 members.