Federal regulators are now considering opposing petitions on rulemakings affecting how brokers conduct business in the latest development of a regulatory battle between brokers and independent owner-operators.
The Federal Motor Carrier Safety Administration (FMCSA) will publish on Wednesday a request for comment on the Transportation Intermediaries Association (TIA) petition to overturn a rule that allows parties involved in a brokered transaction to review records related to the transaction — a regulation created as trucking was being deregulated in 1980. TIA is also asking FMCSA to close a “dangerous loophole” that it claims allows unlicensed brokers to operate.
The revisions, according to TIA, “will improve safety for all entities within the transportation marketplace by removing bad actors from the marketplace and eliminating an administrative burden from the agency to enforce outdated and unnecessary regulations.”
TIA’s request contrasts with petitions filed earlier this year from the Owner-Operator Independent Drivers Association (OOIDA) and the Small Business in Transportation Coalition (SBTC) asking that FMCSA propose a rulemaking that offers more transparency and strengthens the rule in question – 49 CFR 371.3(c) – as opposed to eliminating it.
“Prior to this becoming a recent hot-button issue, with truck protests outside the White House during the COVID-19 pandemic, there has not been one single complaint made to the Department of Transportation’s National Consumer Complaint Database for a violation of a broker not disclosing their commission” under the regulation, TIA stated in its petition request.
“Moreover, motor carrier transportation on the spot market is one of the most transparent marketplaces in the world. Load boards, the internet and rate quotes in person-to-person communications within the industry provide the rate transparency that was intended by 49 CFR 371.3 when commissions paid by carriers to brokers were common. Motor carriers have sufficient access to current market rates without inspecting brokers’ shipment records to find out what the brokers’ gross margins are on a load-by-load basis.”
TIA wants FMCSA to also provide guidance on what constitutes a “dispatch service,” which the association asserts is essentially unlicensed brokers.
“The dispatch service is paid a commission by the motor carrier for their services, not the model that generally applies to brokers, where the shipper pays the broker for their service and the broker pays the motor carrier,” TIA stated. “We believe there are many illegal dispatch services that are operating illegally as unlicensed brokers. FMCSA should prohibit these companies from offering such a service without a license.”
A 60-day comment period will begin after the petition is posted in the Federal Register.
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Denis lih
FMCSA needs to apply thesame stringent rules on brokers as s they do with owner ops. We are not asking brokers to tell us the names of the specific carriers and what they pay. We want simple transparency by just telling us what percentage they are making off loads.
The reason they are against transparency is because these crooks who can’t drive a scooter hid behind computers and are making owner ops run thousands of miles at slave rates to pay bills while shippers keep complaining about rising cost of shipment…. where is the money going?
FMCSA SHOULD BE TRANSPARENT OR ATLEAST GET LUBE TO HUMP OWNER OPS.
Brandon
I believe there should be a 15% cap on what brokers make period! That way we don’t need to know exactly how much the shipper is paying. The broker will still get the max possible. Trucks will now get the fair share. Then it makes it easier to inforce the 15% rule or get fined or shut down. What do you guys think about this fix?
Ray
Plain and simple I would like the Fmcsa to get rid of the deadbeat’s so I can bid on a load for what it is really worth not what some scumbag working under someone else’s license says it’s worth . I need more better paying loads to justify me driving under rule of Fmcsa and cost of ownership of my truck , insurance , ifta , dot , mc , tolls , food , hygiene , fuel , stress from four wheelers , damn I could go for ever . I never had this much to worry about owning my truck repair business for thirty years. How about helping the ones who truly keep America running . Make scabs like hotshot hauling get cdls they tow trailers almost as long as mine but yet have open season on the roads they can drive as long as they want and do on. Who enforces them ? I know no one . True truckers have respect for the road scabs don’t hands down . One last thing how about educating automobile drivers that trucks need a lot of space to operate quit squeezing and filling the gaps otherwise there’s bound to be wrecks we just can’t stop that quick . This goes without saying prosecute the law breakers hard that will make roads much safer for everyone. I went off of brickers a bit but I believe it all works together. Truckers get paid what there worth , they don’t have to race to every pick-up and delivery . That saves lives. THE END !
Sam May
Brittany said it best. There are scabs out there who are looking to exploit the loopholes and will do anything for a dollar. The best way to defend against that is to clearly define what a dispatcher is, what they can do, and what they can not do. As long as I’ve been doing this, I’ve operated under the principle that I work for the carrier, I am their agent, their representative. I don’t handle money, I don’t have customers, I don’t have lanes, and I don’t have freight. I use my knowledge and skill set, to find the best freight for that truck on any given day, and it changes all the time based on what the owner wants. As Brittany said, this isn’t for everyone, there are some carriers out there who do not need me, in fact, I try and teach my guys the market and lanes, so they don’t need me if they so choose. There’s a lot of moving parts in dispatch, but it’s not hard to stay above board with honesty and integrity.
Brittany Hamstreet
My name is Brittany Hamstreet and I built Brittany Dispatch to help people. I started dispatching with Edwards Trucking LLC out of Le Claire, IA in 2012. I learned a lot about the industry, but I also learned a lot about how not to behave and treat people in this industry. I had different moral and ethical beliefs and a new set of skills I wanted to apply somewhere.
I started my company in May 2016. A friend of mine was stranded in Northern California and needed to get home. It took me 20 mins and I had him a load. I knew there were more people out there who needed help and with him came 3 more. Over the year’s drivers have come and gone. Their needs change or family situations change. What hasn’t changed is that they all need help in some way or another.
I’m just a dispatcher but to my carriers I am so much more. I help ease the stress of finding their next load. I take the burden of paperwork away from their family unit and help to ease tension that sometimes arises over working with family. I keep them safe by making sure they know where they are going, helping them when they need directions. I maintain communication at all time with the brokers, relieving the driver of that sometimes-frustrating call. Most of all, I keep them safe by taking on the responsibilities of paperwork and load finding so they’re aren’t driving down the road looking at the load board or trying to get a broker paperwork.
The beauty of what I do is each carrier gets to maintain their independence. They are the captain of their own ship. I am but merely another tool/service to help them be successful to support their family and build their dreams. I am not contracted to move freight; I am contracted to move the truck. It would be no different than hiring a full-time dispatcher but what I do allows them to save on costs. By paying % on the work we do, I am only paid for the work we do together.
I do not solicit customers for my carriers. If they want a direct customer, they must solicit that customer themselves. If we book a load, that trucking company will show up. I agree there are ‘scabs’ out there using this loophole to conduct shady business practices. There are those of us who legitiamately want to help Owner Operators maintain their independence against the big corporate companies. There is so much detail that goes into what we do. We aren’t a good fit for everyone but for those who need us we are invaluable. Ask any of my carriers what I mean to them and you will see.
I have so much more to say because I am passionate about my job. I have reached out to Freightwaves and TIA in the hopes they will speak with me and allow me and my fellow dispatchers who operate honestly and with respect to the industry rules, a say in how we are defined. I don’t feel that it is right that we have been asking for years for a definition to have a rightful place in this industry and yet no one has reached out to our group for insight.
If you have questions or would like talk further please email dispatch@brittanydispatch.com
d trucker
bs thats how i call it why we need thieves in our industry half the time brokers make more than drivers that work hard to deliver loads do away with brokers look at there wealth more than trucking companys
Brittany Hamstreet
Then you should do a better job of choosing who you work with sir. If you don’t understand the need some carriers have a Dispatcher, you should as and we can give you references. Just like some carriers don’t need a factoring company, others do. We do the same thing any dispatcher would do for a trucking company but we structure it differently to save them time and money. You should educate yourself on what we do and how those we help benefit before you call something BS. If you would like to know more, you can send me an email and we can have a conversation. I’d be happy to talk with you.
Zyndallnelson
Ok just what does this mean for us owner operations can we as broker to show us what load pay for are we just have keep on be under pay why broker sits the pay for us
John Turner
Old news not going to work until you get brokers out of the chain of payment. Shippers pay carriers and carriers pay brokers. Until this happens brokers will continue to cheat. Brokers got a phone call in the deal what do truckers got in the deal?.
Stephen Hardridge
Why are not addressing the real issue? Just get rid of freight brokers!!! I know it would leave some people unemployed, but look at how owner operators that have went out of business because of the rates we have have to accept in order to pay our bills. Get rid of the freight brokerage system asap!!!
Dave
YES all dispatch service should be licensed!!!!! They are doing the exact same thing as a broker each day but just getting paid by the carrier or driver that’s all. they are still handling dispatch, money, payables, receivables, negotiating with shippers etc etc.
there are some really bad dispatch services screwing over carriers and shippers and they need to have the same rules as brokers do.