The Federal Motor Carrier Safety Administration announced on Tuesday a listening session it will hold at a major truck show to get more public input that will help the agency crack down on illegal brokering.
FMCSA, which will host the session March 31 at the Mid America Trucking Show (MATS) in Louisville, Kentucky, wants to hear comments on two matters: interim guidance issued in November on the agency’s interpretation of how brokers and bona fide agents are defined, and a proposal issued on Jan. 5 to regulate five areas of broker financial responsibility.
Because the comment periods for the interim guidance and the proposed rule closed on Jan. 17 and March 6, respectively, FMCSA is reopening the comment period for the interim guidance and has extended the comment period for the proposed rule to accommodate issues raised at the MATS meeting. The new comment deadline for both is April 6.
“FMCSA is taking this action to better define the terms in response to a mandate in the Infrastructure Investment and Jobs Act,” the agency stated with regard to the interim guidance.
“While the interim guidance was effective immediately upon publication [on Nov. 16], FMCSA sought comments to the interim guidance and will issue final guidance by June 16, 2023.”
In addition to clarifying the definitions of brokers and bona fide agents, Congress directed that FMCSA must, at a minimum:
- Examine the role of a dispatch service in the transportation industry.
- Examine the extent to which dispatch services could be considered brokers or bona fide agents.
- Clarify the level of financial penalties for unauthorized brokerage activities applicable to a dispatch service.
FMCSA’s Jan. 5 proposed rule requested public comment in five areas:
- Assets readily available.
- Immediate suspension of broker/freight forwarder operating authority.
- Surety or trust responsibilities in cases of broker/freight forwarder financial failure or insolvency.
- Enforcement authority.
- Entities eligible to provide trust funds for form BMC-85 trust fund filings.
The agency received relatively few comments on the two policies. It received just 14 comments on the initial guidelines, including from the American Trucking Associations’ Moving & Storage Conference (ATA-MSC), the Owner-Operator Independent Drivers Association, and the Small Business in Trucking Coalition (SBTC).
“The central problematic issue, here, is FMCSA draws misguided and improper conclusions that ‘arrangement of freight’ and ‘allocation of traffic’ can only be construed to mean arranging or allocating between a shipper and carrier and not a broker and carrier by a party purporting to be agents of competing carriers authorized by FMCSA,” SBTC stated.
“We believe if a third party is involved in any portion of the arrangement of transportation, including helping the carrier ‘find’ the load that the broker is trying to place for his shipper client, then that constitutes, well, arranging.”
The proposed rule received 55 comments, including from ATA-MSC. With regard to FMCSA considering assets readily available as it relates to trust funds secured with broker-funded assets, ATA-MSC contends that FMCSA is responsible for ensuring that trust funds “do not become a tool for bad actors to initiate brokerage companies, defraud motor carriers and shippers, and then move on when the call to make good on the guarantee comes in,” the association stated in its comments.
“Unfortunately, by taking a more permissive approach to what assets would be considered readily available, the agency risks opening the door to expanded — instead of restricted — use of broker-funded trust funds. While the agency’s proposal is clear that there are a number of asset types that are unable to meet an ability to liquidate within [the] seven business day standard, the proposal does not fully evaluate the more fundamental question of which asset types specifically meet a standard to serve as a financial guarantee.
“A prescriptive list would provide an answer to this question while also ensuring that the FMCSA is exercising its regulatory authority and responsibility to set financial responsibility policies that reduce unscrupulous brokers.”
Michael J DeLorenzo
As I agree with you 110% it’s also companies also using DM /driver managers / dispatchers get a % of the loads booked also an as a owner operator leased to a company , when using a broker or dispatcher they tell you 80% of the load paid but they don’t show you want loads paying actually so now you actually get 60/65% because brokers take % dispatchers take % an then they give you 80 of what’s left an companies are making money and DM’s an the broker were it ends up costing a owner operator like my more to deliver the load then it’s paying between price of fuel , tolls going up every other week example I’m getting less per mile now then in the 80’ & 90 after Regan went a deregulated the freight industry, I had a load went 780mls paid to the truck 890$ it’s cost 1125$ for fuel an tolls , the companies use dispatchers an brokers and there one in the same if ever ones getting a percentage of the load how does the driver make money I’m having trouble paying my bills and feeding my family on the road 18-21 days I made 1500$ I used to make that in 5 days in 1987 so when is government going to step in see 4-5 drivers in 1 truck an driver DOT regulations state “drivers must read write and speak fluent English “ end quote there’s more none speaking English drivers on the road ways now more then every an the states are issuing CDL’s in 8 or more languages & you couldn’t drive over the road cross country without 3+ yrs driving experience now you can train an get your license in a school got drive the next day or get it from companies who are driving school authorized , others 6mths driving experience and you have no idea how the big companies take advantage of this and these are the companies that have freight industries locked up with 500+ truck there own insurance company and they have biggest contracts with biggest an largest companies in USA n from all over the world. So they can drop rates so low that small companies who have 25 or less trucks with the experienced drivers an knowledge all around in general get push out an on average close there door’s because can’t afford insurance fuel and pay the drivers then you have brokers n dispatchers taking bigger % off the freight because they can an there no regulations anymore. Protecting drivers and small businesses and companies.
Steven Warrell
Start by making them be in USA only.
Citizens only. That’ll stop a lot of fly by nights.
Go after the ones double brokering.
DIANE BAUMANN
Owner operators earn less every year, but drive more Miles every year. I am in the bulk industry and very familiar whats is going on year after year. Trucking industry is a SICK and shameful JOKE! Why…
Illegal CDL’S issued!
Co/ double / illegal brokering invasion acrossed the board.
Zero transparency from brokers on bulk load boards.
Owner operators and small fleets going out of business, but not brokers on bulkloads.com.
Owner operators trying to earn a living to support their families, has nothing to do about people of color. It’s about our lively hoods and trying to stay alive(while driving on these interstates), so we can go home for a weekend per month. The whole world is here in the USA , driving truck….so let’s ask, what could go wrong?
Many ILLEGALS with Illegal CDL’s, wages are now a third world country wage, pretty sure terrorists organizations are driving trucks, being there is a drug and human trafficking problem, truck accidents and fatalities, road rage, anger, shootings, hit and runs, thievery and crimes all out if control.
Hyper- inflation for fuel, insurance, road ready requirements, parts, equipment, maintenance, travel expenses, are not affordable on a 3rd world wages.
So if any of you so called brokers (who the industry does not even need), want to put ALL THESE ISSUES inside your office, let’s see how well you can do your job and for how long!
Again, this has nothing to do with people of color, it’s does have EVERYTHING TO DO WITH ALL PEOPLE!
Again, we are fed up with all the co/ double, triple, etc brokering on loads. And Zero transparency per load. Brokers are forcing Owner operators to work harder to earn less. Brokers are a huge issue for destroying the trucking industry. Shippers should post their loads and Carriers should be allowed to respond. And ALL the information must be transparent on ALL BOL’S.