Brokers and truckers: An adversarial or partner relationship?
On October 28, 2020, the Federal Motor Carrier Safety Administration (FMCSA) hosted a virtual listening session regarding property carriers and brokers.
The agency wanted to hear from members of the public, truckers, carriers, and brokers regarding their views on the regulation of property carrier brokers in general, and on three pending petitions concerning specific property carrier broker regulation issues.
More transparency wanted
At the heart of the matter was a regulation stating that each party in a brokered relationship has the right to review the record of the transaction. To that end, both the Owner-Operator Independent Drivers Association (OOIDA) and the Small Business in Transportation Coalition (SBTC) petitioned the FMCSA to write rules providing carriers greater access to the full record of the transaction as required in the regulations. In turn, a third-party logistics association, Transportation Intermediaries Association (TIA), petitioned the FMCSA to eliminate the requirements of 49 CFR 371.3(c) and to develop guidance on what legally constitutes a “dispatch service.”
The two sides could not be further apart with OOIDA, SPTC, and carriers seeking greater transparency as in, “we want and have a right to know what the actual rate of the movement is” and brokers and logistics operators stating through the TIA, that they “strongly opposes the petitions filed by OOIDA and SBTC.”
The meeting was held with decorum from all sides: the FMCSA, OOIDA, SPTC, TIA, carriers, truckers, drivers, and brokers. There were many more brokers and logistics professionals making public comments than trucking associations, carriers, or drivers. In fact, the FMCSA attendees implored more drivers and carriers come forward to make a public comment.
Key to remember: Brokers cannot succeed unless there are drivers and carriers willing to haul the loads. While the pie is only so big, hopefully the two sides can work together so all leave the table satisfied.