Legislation to Combat Freight Fraud and Theft

Washington – The American Trucking Associations (ATA) expressed its support for Senator Todd Young (R-IN) today, commending him for introducing new legislation aimed at reducing freight fraud and theft, enhancing regulatory oversight, curbing illegal operations, and strengthening enforcement within the commercial motor carrier sector.

SAFER Transport Act Addressing Industry Concerns

The Securing American Freight, Enforcement, and Reliability in Transport (SAFER Transport) Act has been proposed in response to problems highlighted during a Senate Commerce Subcommittee hearing chaired by Senator Young last year, which focused on the rise in cargo theft incidents. During this hearing, an ATA representative discussed how advanced criminals stole his trucking business’s identity, diverting and stealing shipments using information obtained from the FMCSA’s Safety and Fitness Electronic Records (SAFER) System.

The Impact on Small Trucking Fleets

“Over 90% of trucking fleets consist of 10 trucks or fewer, representing the American Dream,” stated Chris Spear, President & CEO of the ATA. “While motor carriers invest years in building their reputations, they are facing exploitation from sophisticated criminals who use gaps in the USDOT’s registration processes to steal identities and commit cargo theft. It is vital to implement Senator Young’s sensible reforms to update USDOT’s systems, close loopholes, and enhance regulatory measures to protect small businesses.”

Challenges for Indiana’s Trucking Companies

Gary Langston, president of the Indiana Motor Truck Association, remarked, “Family-owned trucking companies in Indiana are in a fierce battle against high-tech thieves. Identity theft and cargo heists are rampant, and the current USDOT system has left gaps that criminals exploit. We appreciate Senator Young’s initiative to address these vulnerabilities in registration, CDL issuance, and training, which will ultimately strengthen our industry’s defenses against fraud.”

ATA’s Call for Improved Oversight

The ATA has long cautioned that lack of oversight compromises safety and enables wrongdoers to thrive. Besides urging action against fraud, the Federation advocates for enhanced regulations to ensure CDL integrity, elevate driver qualifications, eliminate CDL mills, and curb cabotage practices.

Key Reforms in the SAFER Transport Act

The SAFER Transport Act serves as a thorough reform bill focused on freight security and registration integrity, aligning with ATA’s recommendations by:

• Modernizing and securing the FMCSA’s registration system;
• Phasing out old MC numbers in favor of USDOT numbers;
• Strengthening fraud detection and enforcement mechanisms;
• Enhancing oversight of CDL issuance and training providers;
• Increasing penalties for fraudulent certifications;
• Improving coordination among agencies regarding freight theft and cabotage enforcement;
• Closing regulatory loopholes relating to foreign dispatch services.

The Growing Threat of Cargo Theft

Conclusion: Strengthening Protections for Trucking Companies

The SAFER Transport Act aims to bolster protection for trucking firms by enhancing the integrity of FMCSA’s registration system and implementing measures to combat fraud effectively.