Broker Transparency Maintains October Target Date

Broker Transparency Maintains October Target Date

A proposal aimed at improving broker transparency is expected to be released this fall. According to the U.S. Department of Transportation’s Spring 2024 Unified Regulatory Agenda, the Federal Motor Carrier Safety Administration (FMCSA) is targeting October to unveil its notice of proposed rulemaking regarding transparency in property broker transactions.

Key Details

  • OOIDA’s petition requests brokers provide an electronic copy of each transaction record within 48 hours post-service and prohibit waiver provisions.
  • Regulation CFR 371.3 requires brokers to keep transaction records and grants parties the right to view these records; OOIDA urges enforcement and closing loopholes.
  • OOIDA highlighted issues such as unpaid claims, double-brokered loads, and load-phishing schemes, stressing that better transparency would reduce disputes and litigation.
  • FMCSA granted the petition in March 2023, initially aiming for a June 2023 proposal, later adjusted to October 2023.
  • FMCSA’s communication director confirmed the agency’s commitment to initiating rulemaking in 2024, with OOIDA continuing to push for prompt action.

Why It Matters
The FMCSA is moving forward with a proposal to improve broker transparency, following OOIDA’s call for better regulatory enforcement.

The proposed rulemaking aims to address significant issues in the industry, with a focus on reducing fraud and enhancing the economic health of broker/motor carrier relationships. OOIDA remains vigilant, emphasizing the importance of timely action from FMCSA.