Double brokering and bankruptcy

FMCSA says it can’t fight fraud

FreightWaves

Fighting double brokers — Last week, regulators with the Federal Motor Carrier Safety Administration sent their “Unlawful Brokerage Activities” report to Congress. The results aren’t likely to make shippers and brokers happy. 

“As brokers do not typically engage in the actual transportation of goods, however, the direct safety impact of failing to register with FMCSA as a broker is unclear.” – FMCSA report

While the agency called out some actions, like how double brokers tend to use virtual principal places of business, it says its hands are tied.

FreightWaves’ John Gallagher reports, “But because an administrative law judge with the U.S. Department of Transportation held in 2019 that FMCSA does not have statutory authority to assess civil penalties for violations by unauthorized brokers, the agency’s ability to combat broker fraud generally is ‘significantly limited,’ FMCSA stated.” 

Due to that, the FMCSA says it has to refer cases to the Department of Justice, which can be lengthy and inefficient. Now the agency says it would need a revised statute to assess civil penalties.

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Sound off – Is the FMCSA doing enough to combat fraud, or is it kicking the can down the road? Email me your answer.

Trump’s tariffs and the Port of Los Angeles

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Tariffs and imports – With President Joe Biden out of the election and Donald Trump leading many polls, supply chain stakeholders are starting to take the proposition of Trump seriously. One of Trump’s main agenda items is to propose a 10% tariff across all goods and a 60% tariff on Chinese goods.

SONAR

Noi Mahoney reports, “Container import volume into the U.S. increased 14% year over year in June and as of July 18 is up 18% compared to the same period in July 2023, according to FreightWaves’ SONAR Inbound Ocean TEUs Volume Index.” 

Now, Gene Seroka, executive director of Port of Los Angeles, says a Trump win could “Change the landscape for the future.”

Seroka says that in light of Trump’s previous tariffs, the port has diversified its portfolio by focusing on more cross-border activity out of Mexico. 

A wise move as tariffs are likely to be a massive accelerant poured on an already hot Mexican market. 

“I think we’ll see a lot more optimism just because there’s clarity. Whether you love a Donald Trump presidency or absolutely hate it, businesses want clarity. Consumers want clarity.” – FreightWaves CEO and founder Craig Fuller

While imports may suffer, not everyone thinks freight in general will. FreightWaves’ Craig Fuller pointed out during his monthly “State of Freight” webinar that businesses seek clarity and direction. Like tariffs or not, it’s pretty clear where we’d be going with Trump.

USA is on the line – Head on over to WTTGear.com to get your WTT USA T-shirt and show your patriotic pride! They’re $30 and made from some of the softest Bella & Canvas cotton around. Readers of this newsletter can take 10% off with code WTTFans. Get yours today right here.

Memes you can feel in your bones

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WTT Wednesday

Hard truths in freight; AI driver trainers; lithium ion APUs — On Episode 739 of WHAT THE TRUCK?!?, I’m talking to Metafora’s Ryan Schreiber about hard truths in freight and tech. I don’t know who needs to hear this, but Schreiber is here to deliver a dose of reality to the industry.

DOTsfty wants to evolve driver training and usher it into the AI era. We’ll hear from a driver and a supervisor who are using the tool to learn if it is helping their fleet. We’re joined by Doyles Sheehan’s Aarron Harshbarger and Brenden Magill as well as DOTsfty’s Tim Buski.

We’ll meet Dragonfly Energy’s Tyler Bourns. When Bourns isn’t making lithium ion auxiliary power units, he’s busy on the John Lennon Educational Tour Bus. Lennon Buses in the United States and Europe are dedicated to providing young people, communities and schools with free events, workshops, interactive experiences and hands-on opportunities to produce audio, video and digital media projects.

Plus, DOT’s $1.8 billion for freight; cargo theft in Mexico; stuck between a rock and a hard place; and more.

Catch new shows live at noon EDT Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM’s Road Dog Trucking Channel 146.

Now on demand

Pain and gain in the freight market; Biden drops out; generative AI RFPs

Microsoft and CloudStrike outage grounds flights, trucking, global trade

The rest of the noise

• CrowdStrike disruption far from over
• Benchmark retail diesel price sees another downturn
• FMC rejects claims it is using new container rule to regulate prices

Thanks for reading, and feel free to forward this to a friend.

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Don’t be a stranger,

Dooner