OOIDA applauds FMCSA clarification on broker registration
The U.S. Federal Motor Carrier Safety Administration will be keeping brokers and freight forwarders on its radar screen thanks to a notice of determination published in the Federal Register, a move applauded by the Owner-Operator Independent Drivers Association.
In the notice, FMCSA acknowledged its authority over brokers and freight forwarders when it announced the continued registration requirement, OOIDA said in a statement.
'FMCSA ' is making a finding that registration of brokers and freight forwarders of non-household goods is needed for the protection of shippers. Accordingly, the agency will continue to register all general commodities brokers and freight forwarders subject to its jurisdiction,' the notice stated.
OOIDA said the decision helps establish clear federal oversight when it comes to broker regulation.
'When the current highway funding legislation was signed into law in August 2005, it raised some big questions in the minds of some when it came to broker and freight forwarder registration,' said the OOIDA statement, released Friday. 'The Safe Accountable Flexible, Efficient Transportation Equity Act: A Legacy for Users ' SAFETEA-LU for short ' included a reference that some people took to mean that brokers and freight forwarders would no longer have to register with FMCSA.
'Knowing that eliminating the registration would be a detriment to the industry, OOIDA increased its already present efforts on Capitol Hill regarding broker regulation. The association worked to educate members of Congress and FMCSA officials on the importance of broker oversight and pointed out that letting brokers off the registration hook would have been a big step in the wrong direction.'
OOIDA officials said regulating freight brokers helps the viability of small motor carriers.
'The limited oversight of DOT over brokers of general freight transportation is needed today more than ever,' OOIDA Executive Vice President Todd Spencer wrote to members of Congress. 'Just as brokers have proliferated in the household goods industry, and have used modern technology to take advantage of consumers, unscrupulous brokers of general freight transportation take advantage of small business motor carriers on a daily basis.'