Pink Cheetah Express Sues TQL Over Broker Transparency

Pink Cheetah Express has filed a lawsuit against Total Quality Logistics (TQL) in the District of Columbia District Court, accusing the company of failing to comply with a Federal Motor Carrier Safety Administration (FMCSA) order to provide shipper-broker rate transparency records. 

The lawsuit stems from TQL’s refusal to release transactional records that Pink Cheetah claims are required under 49 C.F.R. 371.3, which grants motor carriers the right to inspect transaction records.

TQL & The FMCSA

The dispute began in January 2023 when Pink Cheetah contracted with TQL to haul a load of ice cream. After completing the load, Pink Cheetah requested TQL’s records, but TQL refused, citing a contract clause that waived the carrier’s right to inspect records. In response, FMCSA intervened, strengthening broker rate transparency rules and issuing an order for TQL to comply with record inspection requests.

TQL's Compliance and Continued Issues

By November 2023, TQL complied with FMCSA’s order and released the records, revealing that TQL made a 56% margin on the load, significantly higher than the industry average. Despite statistics from the brokerage industry suggesting that the average broker margin is 14-16%, Pink Cheetah claims that TQL has not fully complied with FMCSA’s directive and has continued to deny requests for additional records.

Pink Cheetah is now asking the court to compel TQL to provide all relevant records, including those for additional loads, and to enforce FMCSA’s order. The company is urging others in the trucking industry who have been affected by poor rates to speak up and support the push for greater broker transparency.

The FMCSA has reopened the comment period for broker transparency rules, which will last until March 20, 2024. OOIDA president Todd Spencer has also called on truckers to demand action from FMCSA, emphasizing the need to hold freight brokers accountable.