On November 20, 2024, the Federal Motor Carrier Safety Administration (FMCSA) published a notice of proposed rulemaking (NPRM) entitled "Transparency in Property Broker Transactions." The Agency notes that this proposed rule is necessary to “address the lack of access to information among shippers and motor carriers that can impact fairness and efficiency of the transportation system.” Additionally, “correct imbalances in negotiating power.” 

Our response to that is simple, the proposed rule is continued overreach from this federal agency, who continues to be derelict in their duties of assigning safety ratings to motor carriers and addressing the rampant freight fraud. 

Specifically, the NPRM promulgates the following provisions:

• Requiring brokers to maintain records electronically, ostensibly to improve access for carriers and shippers.
• Eliminating the distinction between brokerage and non-brokerage services, mandating records for each shipment include all charges, payments, and related claims.
• Reframing brokers' duty to provide records as a regulatory obligation rather than a transactional right of request.
• Mandating brokers provide all requested records within 48 hours of delivery.
   

One of the provisions that our opposition asked for was for the FMCSA to bar brokers from including contract provisions in the form of a waiver to see financial information in their contracts. FMCSA did note that this is outside their jurisdiction and would not be addressing that provision. 

TIA has consistently maintained that the broker transparency regulation, rooted in the 1980s, is obsolete and un-American. Originally implemented in an era following trucking deregulation when brokers acted as commissioned sales agents for motor carriers, this rule has no place in today’s highly transparent marketplace. Any attempts to expand or enhance these outdated provisions should be shelved, and the FMCSA should redirect its attention to fulfilling its primary mission—ensuring safety on our highways and addressing rampant freight fraud.

Our message today: Please file a comment in opposition to the NPRM and overreach from the FMCSA.  

There are two ways to file your comment. Click on the link below or use the fillable form on the right side of the page below the talking points to make your comment. The comment period closes on January 21, 2025.