How Owner-Ops Feel About Broker Transparency
Broker transparency and the enforcement of 49 CFR 371.3, which covers broker record-keeping and carriers' right to review these records, are hotly debated in the trucking industry.
Small carriers and owner-operators demand more visibility from brokers, while large brokers prefer to keep information private.
The lack of enforcement frustrates owner-operators, as 371.3 exists on paper but is rarely implemented. Similarly, the Federal Motor Carrier Safety Administration (FMCSA) has been reluctant to assess fines for commercial violations or potential acts of perjury by registered bad actors.
Small trucking businesses are unusually seeking more regulatory enforcement.
Image: This chart, showing Overdrive owner-operator survey results around brokered-freight margins and transparency, was featured in a special report early in 2024
Despite promises to address petitions for increased freight-transaction transparency, the FMCSA delayed action last year. Jeffrey Tucker, CEO of Tucker Company Worldwide, explained that deregulation in the 1980s transformed the trucking industry from being highly regulated to a more open market.
Broker transparency originally aimed to ensure brokers received their agreed-upon percentage of a load. Today, this concept is outdated as there are no longer fixed percentage contracts.