For some time, the Federal Motor Carrier Safety Association (FMCSA) has been considering a request by a couple of organizations to change the way that brokers operate and require them to be more transparent with the carriers that haul for them. The FMCSA expects to have a decision on the rulemaking process in early 2023.
The request that has been before the FMCSA would require brokers to electronically provide transaction records to the motor carrier within 48 hours of the time the carrier completes the delivery. Such documentation would include the amount the broker received for its service, the name of the payer, the amount of freight charge collected by the broker, and the date it was paid to the carrier. Currently, such information is required to be provided by the broker only upon request by the carrier.
The Transportation Intermediaries Association (TIA) has opposed the request and even asked that the current regulation allowing carriers to review the brokered transaction be repealed. TIA has stated that the regulation hinders the “free, open, and competitive marketplace.”
The original request for added transparency was filed amid the beginning of the COVID-19 pandemic and the demand for it died down somewhat since as freight was plentiful. However, since loads have tightened up, accusations of brokers colluding on pricing have increased, leading to the calls for increased transparency on rates.
What do you think? Should brokers have to disclose the load information? Should that information even be available to the carrier? Let us know what your opinion is by emailing contact@safecarriers.org. We are interested in your opinion.
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