Dive Brief:
The Federal Motor Carrier Safety Administration (FMCSA) is considering stricter regulations for broker record-keeping and information disclosure, as stated in a recent proposed rulemaking notice. Interested parties can submit their feedback until January 21 on regulations.gov. The new regulations would mandate that broker transaction records be kept electronically and made available to carriers within 48 hours upon request, aimed at enhancing transparency and accountability in the industry. This initiative seeks to facilitate access to important information, ensuring that claims related to damage or delays by shippers are comprehensively documented, which could lead to quicker, less costly resolutions between involved parties.
Dive Insight:
In 2020, the Owner-Operator Independent Drivers Association and the Small Business in Transportation Coalition urged the FMCSA to pursue reform, highlighting that broker contracts sometimes contain clauses that waive access rights. While existing regulations already grant relevant parties the right to access transaction records, carriers have faced challenges in obtaining them for years, according to the agency. The proposed regulation aims to make this right a regulatory requirement, thereby clarifying obligations for brokers.
The move to electronic record-keeping is prompted by the fact that brokers often hinder access by restricting inspections to their primary locations, which can effectively render access impractical. This concern is addressed in the notice.
The Transportation Intermediaries Association (TIA), which advocates for brokers, has criticized the proposed rulemaking as an overreach. In a statement, TIA expressed that the broker transparency regulations from the 1980s are outdated and not aligned with current market conditions. The group emphasized that these rules were introduced during a time when brokers functioned merely as sales agents for motor carriers, asserting that such regulations are unnecessary in today’s more transparent environment.
The proposed rule is designed to ensure that all parties involved have complete visibility into shipment payments, fees, and charges—an aspect of transparency that the FMCSA claims is currently lacking in the industry.
Todd Spencer, President of OOIDA, remarked that revising this rule would empower carriers to better defend against claims related to shipments while reinforcing brokers’ responsibilities to adhere to regulations.
