Too often, it feels like lawmakers and government agencies aren’t listening to the needs of truck drivers.
However, the Federal Motor Carrier Safety Administration’s recent proposal to strengthen broker transparency regulations – as well as the agency’s denial of a petition from the Transportation Intermediaries Association to eliminate the existing rules – indicates that the decision-makers are paying attention to what truckers have to say on this issue.
That’s why the Owner-Operator Independent Drivers Association is urging all truck drivers to seize the opportunity to file comments on FMCSA’s broker transparency proposal by the Jan. 21 deadline.
On Wednesday, Jan. 8, OOIDA hosted an online “fireside chat” to explain why broker transparency is essential and to answer questions from truck drivers about FMCSA’s proposal.
“The broker transparency proposal has been around for a long, long time,” OOIDA President Todd Spencer said. “This is one of the requirements that actually has been in federal regulations for over 40 years – over 40 years. It’s just never been complied with. We need to change that. This is our opportunity to do it. (OOIDA) can let everybody know what’s going on, but our words mean so much more if they’re backed up by your words and your real-world experiences … Your voice matters. Your opinions matter. Let’s work together to fix some of these issues. (Broker transparency) is one of the issues that needs to be fixed.”
Despite broker transparency regulations being on the books for decades, many brokers have evaded compliance. That has caused truck drivers to be unsure whether they’re receiving a fair deal or are being hit with a bogus claim. In 2020, truckers’ frustrations boiled over to the point that hundreds traveled to Washington, D.C., and organized a weekslong protest about the issue.
The protest caught the attention of President Donald Trump. It also prompted OOIDA to petition the agency to require that brokers automatically provide an electronic copy of each transaction record within 48 hours and prohibit brokers from asking carriers to waive their rights.
Although FMCSA’s proposal does not exactly mirror OOIDA’s petition, it would take steps in a positive direction for truckers.
FMCSA’s broker transparency proposal would:
- Require brokers to keep their records in an electronic format
- Require brokers to provide an electronic copy of records within 48 hours after a carrier makes a request
- 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
Jay Grimes, OOIDA’s director of federal affairs, said the proposal isn’t perfect. OOIDA plans to use its comments to encourage the agency to provide specifics on enforcement and penalties.
“They are relying on the current civil penalties that are already approved in Federal Motor Carrier Safety Regulations,” Grimes said during OOIDA’s forum. “And frankly, they don’t provide enough of a strategy exactly on how they’re going to improve enforcement. We’ve got a couple of ideas that we’re going to throw out there in our comments, too, because that’s really going to be the key if and when this rulemaking is finalized … We think we’ve got the intent laid out pretty well in the notice of proposed rulemaking. But, obviously, we want to see that come to fruition.”
Concerns about free market
Some questions about the proposal voiced during the chat centered on an argument from brokers that transparency would disrupt a free market. TIA has gone as far as calling broker transparency regulations “un-American” and suggesting that they “threaten to erode the foundations of American capitalism.”
OOIDA, however, made it clear that providing access to the records is not a new rule and that the information would be sent after a transaction has already taken place.
“You’re still going to negotiate every load,” Spencer said. “You’re going to make the best deal that you can. That’s not going to change in any way.”
What would change is that all relevant parties would have the ability to see whether they were treated fairly and whether a broker was someone with whom they wanted to continue doing business.
“Once the record of the transaction becomes available, well, then you’ll figure out real quick, ‘Did I get a decent deal or not, or did this guy take advantage of me?’” Spencer said.
One of the final questions asked whether a broker transparency rule would make any difference.
“Hell yes,” Spencer replied. “It’ll make a difference. Some of the brokers are just apocalyptic about this. This will sort out the good guys from the bad guys. The good brokers will get more dedicated truckers that will be working with them … Truckers will figure out pretty quick who they don’t want to do business with. There are no losers here. Everybody’s a winner.”
FMCSA will accept comments on the broker transparency proposal through Jan. 21. Comments can be submitted through OOIDA’s site or by going to Regulations.gov and entering Docket No. FMCSA-2023-0257-0001. As of Thursday, Jan. 9, the agency had received more than 2,100 comments. LL
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