Truck carriers have long been kept in the dark when it comes to broker transaction records. These hidden activities can make business interactions murky and create a unique set of challenges for carriers. In an attempt to improve this problem, the FMCSA proposes a plan to reinforce broker transparency regulations for truck carriers.
MehaffyWeber is watching this situation closely, so our Texas transportation lawyers can provide support as guidance changes. Our team is ready to answer your questions should they arise as you conduct business. Contact us at your convenience to arrange a consultation if this FMCSA plan may impact your company.
The Relationship Between Brokers and Truck Carriers
Truck carriers often work with freight brokers to coordinate and move their loads. Brokers act as the go-between to organize and manage logistics for both the shipper and carrier. The goal is to reduce the stress and logistical burden on each party.
Brokers work with a network of carriers that can move freight according to a shipper’s requirements and timelines. As such, brokers coordinate and maintain a high volume of records, transactions, and data. However, vital information is not always shared with the carrier who is moving the freight, which can cause issues with transparency and limit the carrier’s agency in various matters.
Brokers May Hide Records From Carriers
Broker agencies have been known to hide transaction records from the carriers they work with. They often do this through carrier waivers that force carriers to waive their right to transaction information. If brokers are willing to provide this documentation, they may choose to only provide it in a physical format, which continues to limit a carrier’s access to it. With the current regulations, brokers can easily avoid transparency.
Brokers Would be Required to Provide Access to Records if These Legislative Amendments Pass
To remedy this problem, the Federal Motor Carrier Safety Administration (FMCSA) has proposed four provisions to improve the transparency between brokers and truck carriers. These provisions would make it harder for brokers to find and use loopholes to avoid providing the information requested by carriers. The amendments would also give carriers greater access to the information they need to complete their jobs and resolve issues that come up.
The proposed changes include the following four amendments:
- Provision 1: This change would require brokers to maintain and provide all transaction records in a digital format.
- Provision 2: This change would require brokers to no longer distinguish between brokerage and non-brokerage services and charges. Brokers would now be required to make charges, payments, fees, and shipping information available with each transaction so carriers can see all information connected to what they are carrying.
- Provision 3: This change would obligate brokers to supply records to carriers requesting such information. It would eliminate any language, making this aspect optional and improving the required process all parties are to follow regarding transaction records.
- Provision 4: This change would require brokers to provide the requested records within 48 hours. These records are often used to resolve payment, service issues, or complaints.
Context Around the FMCSA’s Proposed Changes
As with any issue, context matters. The FMCSA has proposed these changes to address specific issues and challenges carriers have had within the last several years. Because they are unable to access the transaction data they need, carriers are unable to provide evidence or resolve issues when shipping problems occur. This can result in financial losses and lost business for carriers. It can also be detrimental to the relationship between the shipper, broker, and carrier.
These proposed changes are an effort to not only increase transparency but also create a more equitable system that creates efficiency for all three parties. If the amendments pass, the FMCSA will execute and oversee these regulations.
History and Status of Broker Transparency Changes
Changes to broker regulations were first initiated in May of 2020 when both the Small Business in Transportation Coalition (SBTC) and the Owner-Operator Independent Drivers Association (OOIDA) filed petitions to seek an increase in transparency. Since then, the matter has been opened to public comment, and discussions have been conducted on the topic. While the current provisions do not necessarily address all the concerns from the original petitions (such as carrier waivers), the amendments are in the rulemaking process.
As of January 2025, the issue has been reopened to the public for comments and feedback. Since this matter is still ongoing, the final outcome and ramifications remain to be seen.
Transportation Lawyers Protect Your Rights
When problems arise between freight brokers and your trucking company that lead to legal problems, transportation lawyers can provide you with sound legal counsel to ensure your rights are protected. They understand there are many situations that can arise in the course of doing business, and they will endeavor to minimize your liability while fighting against those who would hinder your business.
Your lawyer will diligently investigate the problem you are facing to assess what actions are needed and what your options are. They will advocate for you when you are treated unjustly by brokers. While your matter may be resolved out of court, your lawyer will not hesitate to utilize litigation to secure the results that you need.
Additionally, your lawyer will also provide guidance in light of the shifting legislation around broker transparency. As regulations change, you can be confident that you will receive current advice from your lawyer. They will also ensure that you are made aware of changes to your rights depending on what decisions are made.
Contact MehaffyWeber Today for Legal Representation
MehaffyWeber continues to monitor these proposed changes to broker transparency regulations so we can act quickly and provide the most up-to-date counsel on this matter. Our team fights to ensure you receive the legal protections you need in the transportation industry.
We understand the regulation challenges you may face, and we endeavor to provide you with the support you need for smooth and efficient operations. Contact our Texas transportation lawyers today to learn more about how we can represent you.