Owner-operators seek DOT enforcement of broker regulations

OOIDA made a similar request to all 535 members of Congress earlier this month. In its petition to DOT and FMCSA, OOIDA is also requesting that the administration add teeth to its enforcement measures.

“In order to dissuade brokers from knowingly skirting these regulations, FMCSA must levy and enforce a structured fine system that would penalize non-compliance,” the letter states.

“Furthermore, FMCSA must suspend or revoke the authority of unscrupulous brokers that exhibit a pattern of noncompliance. We believe this would improve transparency between brokers and carriers” as intended by the law. With rates on the decline, many truckers are concerned they’re the only ones feeling the pain – or at least feeling a disproportionate share of the pain. This will not change until federal regulators enhance and enforce the broker transparency regulations.”

OOIDA pointed out in the petition that it has “long pushed” for greater broker transparency. However, downward pressure on rates exerted by the effects of COVID-19 led owner-operators to take their case to Washington, D.C., including an ongoing demonstration within sight of the White House that caught the attention of President Donald Trump.

The Transportation Intermediaries Association (TIA), which represents brokers, denies assertions of price-gouging – one of the allegations from the demonstrators – pointing out that “there is simply not enough freight to support all of the carriers,” TIA President and CEO Robert Voltmann has asserted. Following President Trump’s recent tweet alleging broker price gouging, TIA said it was willing to formally discuss the situation with the Administration. 

In first-quarter performance measures released on May 18, TIA reported total broker and 3PL shipments from members declined 3.4% to 1.33 million compared with the same period in 2019. Total revenue declined 8.5% to $2.6 million, and gross margins dropped from 17.5% to 15.8%.