Broker transparency: help or harm?

By Shefali Kapadia | for The Inside Lane

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The Federal Motor Carrier Safety Administration recently reopened the comment period on its broker transparency proposal. To date, the proposed rule has received more than 5,000 comments. Trucking groups representing small carriers have been outspoken about the need for better transparency between fleets and intermediaries.

 Are regulations the way to go? Or are there best practices for brokers and carriers to work together more seamlessly? We spoke to Chris Burroughs, president and CEO of the Transportation Intermediaries Association (TIA), to get his take on the way forward. -Shefali Kapadia

 Would the FMCSA's broker transparency proposal rule help or hurt brokers? What about small biz trucking firms?
TIA commissioned the renowned transportation economist Noel Perry to examine the issue of broker transparency and its impact on all parties in the supply chain. The findings were alarming. All four parties involved in the supply chain—motor carriers, brokers, shippers, and consumers—would be negatively impacted by broker transparency and increased regulations. Specifically, the report notes increased costs associated with regulations and more competition, which would lead to a leveling of margins. 

What one thing do you hope the Trump administration will focus on that benefits fleets, brokers and other trucking industry players?
TIA would fully support the Trump Administration addressing the issue of strategic theft and fraud in the supply chain. We were told back in 2020 that there were over 80,000 complaints in the national consumer complaint database, and there has been no action to date to address this massive problem. Freight fraud affects all members of the supply chain. The FMCSA needs to get off the sideline and into the game to help the industry tackle this important issue.

"The FMCSA needs to get off the sideline and into the game to help the industry tackle this important issue." - Chris Burroughs

What advice do you have for small fleets trying to build stronger relationships with brokers?
Relationships are everything in any business. We would recommend finding a broker that looks at small carriers as an integral part of their business. Both parties need to have mutual respect and work to create wins for each other. TIA members would be an ideal place to look, as we have stringent membership requirements and require our members to have the necessary experience in the industry and sufficient knowledge of how the industry works, which includes building strong relationships with motor carriers. 

What technology do your members say they can't live without?
Technology that works to mitigate fraud. With the FMCSA using antiquated technology, including a registration system that is woefully inadequate, brokers and shippers are utilizing and making massive investments in technology to mitigate risks and protect their customers, both shippers and motor carriers. These would include carrier selection tools, AI, technology to track stolen freight and automated processes.    

 This interview was edited for brevity and clarity.

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The Inside Lane is curated and written by Shefali Kapadia and edited by Bianca Prieto.