OOIDA Petitions FMCSA to Crack Down on Freight Brokers
Washington D.C. – Yet another trucking group is petitioning the Federal Motor Carrier Safety Administration (FMCSA) to commence a rulemaking to strictly enforce rate transparency regulations between freight brokers and carriers.
In a newly filed petition, the Owner Operator Independent Driver’s Association (OOIDA) is asking the Agency to take multiple steps to ensure transparency in all transactions between brokers and carriers.
Specifically, OOIDA is asking the FMCSA to: 1) require brokers to automatically provide an electronic copy of each transaction record within 48 hours after the contractual service has been completed, and 2) explicitly prohibit brokers from including any provision that requires a carrier to waive their rights to access the transaction records.
As has been now widely reported since the beginning of the ongoing trucker protest in Washington D.C., federal regulations require brokers to keep a record of the transaction with carriers.
Under 49 CFR 371.3, each party to a transaction has a right to review the record including what the shipper paid the broker and the margin for the broker.
OOIDA is also asking the FMCSA to impose fines on brokers that choose to not comply with the regulations.
The new petition comes nearly two weeks after the Small Business in Transportation Coalition (SBTC) filed a similar petition.
The SBTC seeks a new provision to 49 CFR 371 to state, “Brokers may not coerce or otherwise require parties to the transaction to waive their right to review the record of the transaction as a condition for doing business. No stipulation or clause in any contract shall exempt any broker from having to comply with this rule, upon demand, by a party to the transaction.”
On Monday, President Donald Trump once again offered his take on freight brokers and the truckers protesting in Washington D.C.
In a roundtable discussion with restaurant industry leaders hosted at the White House, President Trump directed Eugene Scalia, Secretary of the U.S. Department of Labor, to “help the truckers.”
“Yeah, because they’ve been out there [on Constitution Avenue near the South Lawn of the White House] and I’ll tell you, they work hard and they have brokers that take a lot of their business away [and] they don’t work so hard. They sit in an office some place. It’s not good, so I’d like to help the truckers,” President Trump said.
“Elaine [Chao] and I have been talking about it,” Sec. Scalia responded.
“Alright? Good, please,” the President once again urged.
Read more on this story HERE.
On Wednesday, after almost three weeks of protesting in our nation’s capital, President Donald Trump’s Chief of Staff, Mark Meadows, along with Jim Mullen, Acting Administrator of the Federal Motor Carrier Safety Administration (FMCSA) met with two representatives of the group in the West Wing of the White House.
Mike Landis, founder of the United States Transportation Alliance (USTA) and Sergey “C.J.” Karman, founder and CEO of Ezlogz, emerged from the meeting and reported rate transparency was at the top of the list of items discussed.
Meadows reportedly urged Mullen to better enforce 49 CFR 371.
In fact, Karman explained to a group of protesters following the meeting that both Meadows and Mullen indicated it was “not a bad idea to make transparency mandatory before the load is booked.”
Read more on this story HERE.
TransportationNation.com will continue to follow new developments.