It’s time for broker transparency.
That was the Owner-Operator Independent Drivers Association’s message to the Federal Motor Carrier Safety Administration about the agency’s proposal to strengthen existing regulations regarding the disclosure of transaction records between motor carriers, shippers and brokers.
OOIDA filed its formal comments on the morning of Tuesday, Jan. 21, the final day for submissions. Comments will be accepted online until 11:59 p.m. Eastern.
The Association, which represents small-business truckers, supports FMCSA’s proposal but also calls for amendments that will lead to a level playing field.
“OOIDA has long pushed for greater transparency in transactions with brokers and supports FMCSA’s initiative to bring overdue improvements to broker regulations,” the Association wrote in comments signed by President Todd Spencer. “OOIDA supports the notice of proposed rulemaking’s intent along with many of its technical provisions. However, FMCSA must strengthen the rulemaking by clarifying how they will enforce the rules and closing all loopholes that let brokers waive transparency rights.”
The rulemaking
In November, FMCSA issued a notice of proposed rulemaking that aims to strengthen existing broker transparency regulations. Broker transparency regulations have been on the books since the 1980s but are often not enforced.
FMCSA’s broker transparency proposal includes four main provisions:
- It requires brokers to keep their records in an electronic format.
- It requires 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.
- It affirms that brokers have a regulatory obligation to provide transaction records.
- It requires brokers to provide an electronic copy of records within 48 hours after a carrier makes a request.
A deeper dive into each of the broker transparency provisions can be found here.
OOIDA comments
OOIDA applauded FMCSA for the provision regarding electronic records and for emphasizing that brokers have a regulatory obligation. However, the Association said that more must be done.
First, the Association wants the transaction records to be required automatically rather than upon request.
“Our 2020 petition sought a provision making disclosure of the records automatic,” OOIDA wrote. “We believe automatic disclosure is necessary to prevent selective retaliation. We disagree with the agency’s position that an automatic disclosure provision is unnecessary and could be excessively burdensome to brokers … Automatic disclosure of records will close the asymmetry of information gap and put carriers on equal footing with brokers who are receiving automatic alerts themselves.”
OOIDA said that FMCSA also must issue strict penalties to brokers who do not comply with the regulations.
“FMCSA must levy and enforce a structured fine system for 371.3 violations that would penalize noncompliance with broker regulations,” OOIDA wrote. “The agency should suspend or revoke the authority of unscrupulous brokers that exhibit a pattern of noncompliance.”
Although OOIDA has been calling for broker transparency for decades, the effort escalated when truckers traveled to Washington, D.C., to protest the issue in May 2020. OOIDA then petitioned FMCSA to issue a rulemaking. Now, the Association is hopeful the Trump administration will quickly move forward with a final rule.
“The proposal can help restore honesty and integrity between all brokers and carriers,” OOIDA wrote. “If implemented effectively, broker transparency can forge mutually beneficial partnerships that will cultivate economic stability within the trucking industry, improve driver retention and benefit highway safety.”
How to comment
FMCSA will accept online comments on the broker transparency proposal through 11:59 p.m. Eastern on Tuesday, Jan. 21. Comments can be submitted at FightingForTruckers.com or by going to Regulations.gov and entering Docket No. FMCSA-2023-0257-0001.
As of the morning of this final day for commenting, FMCSA had received more than 4,400 comments. LL
Credit: Source link
