FMCSA to Consider Broker-Shipper Transparency

OOIDA Seeks Rulemaking to Require Pricing Documents Be Shared With Truckers

trucks on highway
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Federal trucking regulators have confirmed they plan to consider a controversial request by the seeking a rulemaking to require broker-shipper pricing documents be shared with truckers carrying the load.

The said in a June 16 that the agency, 鈥渁t the appropriate time,鈥 will take up the issue of OOIDA鈥檚 2020 transparency petition to provide an electronic copy of each transaction record automatically within 48 hours after the contractual service has been completed.

The is actively fighting the OOIDA petition, arguing that the documents are private transactions.

鈥淥OIDA has long fought to protect our members鈥 rights to access contractual documents guaranteed to them under federal regulations,鈥 OOIDA CEO wrote in a Sept. 22 follow-up letter to FMCSA Administrator . 鈥淣ot only does access to these documents protect carriers from unscrupulous brokers, it helps to protect the public by providing a marketplace in which each party behaves in a clear and transparent manner.鈥



鈥淚t has been over two years since OOIDA submitted its original petition, 20 months since the most recent comment period ended for broker transparency-related dockets, and nearly 1,500 comments have been filed on the dockets listed above,鈥 the letter said. 鈥淔or that reason, we believe an update is warranted on where the agency stands on our outstanding petition and related comments from motor carriers.鈥

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Todd Spencer

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In an interview, Spencer said he hopes the agency will soon act on OOIDA鈥檚 petition. He said that if the agency issues a regulation requiring the transparency, it could lower costs for consumers.

鈥淔rom the perspective of people who operate trucks, we assume that they [brokers] don鈥檛 want to disclose information because the position they have right now is advantageous to them,鈥 Spencer said. 鈥淥bviously, if you鈥檙e the carrier that moved the goods then you鈥檙e a party that鈥檚 entitled to see the information. Who knows what they鈥檙e hiding.鈥

TIA President disagrees. She thinks OOIDA is seeking the pricing between the shipper and broker so they can leverage their own pricing, but that the broker shipper pricing information is private.

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Anne Reinke

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鈥淭hey鈥檙e using a regulatory method to use leverage to negotiate,鈥 Reinke said. 鈥淭hat doesn鈥檛 sit well with us. It鈥檚 not clear to me what they think we鈥檙e protecting. There is some indication that FMCSA is going to act on the OOIDA petition, but they have not predisposed to act a certain way.鈥

Reinke said that during the COVID-19 epidemic, shipping prices went 鈥渢o the basement, and brokers were blamed for driving prices down, and making money off the pandemic.鈥

鈥淣othing could be further from the truth,鈥 she added. Since then, carrier rates have 鈥済one through the roof,鈥 because people have been ordering things 鈥渙ut the ying-yang.鈥

In December, TIA made it clear it is fighting OOIDA鈥檚 petition, asking regulators to sunset a decades-old regulation that the group argues is out of alignment with today鈥檚 brokerage marketplace.

The . According to TIA Vice President of Government Affairs , the 1980 law stretches back to a very different time in the brokerage business.

鈥淢otor carriers paid brokers a commission, and there was concern from the [Interstate Commerce Commission] of rebating and double-dipping in profits when brokers and shippers shared common ownership,鈥 he said. 鈥淭he marketplace does not operate like that today. It is drastically different, with two separate business transactions between the broker-shipper and the broker-carrier.鈥

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