Truck drivers believe the ability to view transaction records will promote fairness and prevent fraudulent claims. Brokers argue that broker transparency regulations are outdated and “un-American.”
Now, it’s up to the Federal Motor Carrier Safety Administration to decide whether to move forward with a rulemaking that would strengthen 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. After a change in administrations, the comment period was opened for another month through March 20.
In all, about 6,900 comments were submitted.
“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.”
Regulation 371.3 already requires brokers to keep records of each transaction. Additionally, each party to a brokered transaction has the right to review the record. However, brokers often require carriers to waive that right or find other ways to evade the rule.
The Owner-Operator Independent Drivers Association told the agency that strengthening and enforcing existing broker transparency regulations will 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.”
The Transportation Intermediaries Association called the proposal “un-American” and numerous brokers commented that it “undermines capitalism.”
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?
The FMCSA will begin reviewing the comments and determine whether or not to move forward with a final rule. If the agency decides to do so, it could advance the current proposal or make amendments based off the comments received. LL
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