The Federal Motor Carrier Safety Administration (FMCSA) recently introduced a Notice of Proposed Rulemaking (NPRM) aimed at enhancing transparency in freight broker and motor carrier transactions. This rule responds to long-standing demands from trucking organizations, including the Owner-Operator Independent Drivers Association (OOIDA) and the Small Business in Transportation Coalition (SBTC), who have advocated for these changes since 2020.
Key Proposals in the New Rule
Electronic Records Requirement: Brokers would be required to maintain electronic records to streamline sharing and review. This replaces the current system where records may only be available physically, complicating access for carriers.
Comprehensive Transaction Records: The rule mandates detailed recordkeeping of all charges and payments associated with each shipment, including amounts, dates, and descriptions. This transparency aims to mitigate disputes between parties.
Reframed Obligations: The proposed changes shift the responsibility to brokers, making it their regulatory duty to provide transaction records upon request rather than treating this as a carrier's right.
Timely Disclosure: Brokers must deliver requested records within 48 hours to expedite issue resolution and improve accountability.
Implications for Carriers and Brokers
For carriers, these amendments could address issues such as unfair deductions, hidden fees, and limited access to rate details. However, for brokers, the changes might increase administrative burdens and concerns over the confidentiality of their economic arrangements with shippers.
Next Steps
The FMCSA is accepting public comments for 60 days following the NPRM’s publication on November 20, 2024. This period provides stakeholders the opportunity to voice support, propose refinements, or express concerns about the new rule.