Largest Broker Group Challenges President Trump on Price Gouging Claims
Alexandria, VA – The head of the largest association representing third party logistics (3PL) companies is firing back at President Donald Trump after comments he made Friday morning during a televised interview.
During an interview by phone on Fox News, President Trump was asked about alleged “price gouging” by some freight brokers during the COVID-19 recession.
“Everything in front of us, our paper, our water bottles, our pencils, our phones are delivered on a truck, and you tweeted about American truckers being price gouged, what are you going to do about that?” Ainsley Earhardt of Fox & Friends asked the President.
As part of a rather lengthy response, Mr. Trump stated, “Oh they are price gouged. We’re going to take care of that.”
Click HERE to read President Trump’s full comments.
It didn’t take long before Chris Burroughs, VP of Government Affairs with the Transportation Intermediaries Association (TIA), took to social media to strongly object to the President’s assertion.
“Truckers are not being gouged by brokers on rates,” Burroughs argued. “The problem is 95% of the trucking industry is chasing 75% of the freight because of COVID-19 w/ market factors driving the rates down.”
Also, in a statement released shortly after the President made his remarks, TIA President and CEO, Robert A. Voltmann, said he was “disappointed.”
“[President Trump’s] position could not be further from the truth,” Voltmann stated. “As the President should know, real estate agents don’t determine the sales price of buildings, the market does. The same is true in trucking.”
Voltmann indicated TIA’s members are being scapegoating as a result of awful market conditions.
“Picking on one segment of one industry is not the answer. Getting America back to work, however, is the answer,” he argued.
Voltmann also pointed out, “All of the publicly traded 3PLs reported losses in revenue and gross margin in the first quarter.”
Further, he said he “welcomes the opportunity to discuss the situation with the Administration, as well as with all parties involved, in a formal setting – not through completely misconstrued and misrepresented statements across social media and other channels.”
The issue of alleged broker abuses has captured industry-wide attention since the release of a series of recent social media videos made by New Jersey trucker Rick Santiago.
The videos, which quickly went viral, mobilized many of the truckers who are currently demonstrating in Washington D.C.
Click HERE to read more about Santiago and the response from the brokers mentioned in his videos.
In response to the growing furor, multiple trucking groups including the Small Business in Transportation Coalition (SBTC) and the Owner Operator Independent Driver’s Association (OOIDA) have now called for the Federal Motor Carrier Safety Administration (FMCSA) and the United States Congress to take action to require brokers to provide more transparency in the carrier/broker/shipper relationship.
Click HERE to read exactly what these groups are demanding.
Meanwhile, the Department of Justice (DOJ) is seeking evidence of potential violations of antitrust laws on the part of brokers before possibly opening an investigation into the matter.
Click HERE to read more on what actions the DOJ is taking.
Stay with TransportationNation.com for the latest on this fast moving story.