The Federal Motor Carrier Safety Administration (FMCSA) has proposed amendments to its regulations concerning property broker transactions, aiming to enhance transparency and protect motor carriers and shippers. These proposed changes, published on November 20, 2024, are designed to address information gaps and power imbalances in brokered transportation agreements.
Key Proposed Amendments:
- Electronic Record Maintenance: Brokers would be required to maintain transaction records in an electronic format, facilitating easier access and review by transacting parties.
- Comprehensive Record Content: The distinction between brokerage and non-brokerage services would be eliminated. Records would need to include all charges and payments related to each shipment, such as descriptions, amounts, and dates, as well as any claims associated with the shipment.
- Clarified Broker Obligations: The regulation would reframe broker transparency as a regulatory duty, obligating brokers to provide transaction records to the transacting parties upon request.
- Timely Record Provision: Brokers would be required to provide the requested records within 48 hours, ensuring prompt access to information necessary for resolving service or payment issues.
These proposed amendments aim to empower motor carriers and shippers with the information needed to make informed business decisions and resolve disputes efficiently. The FMCSA believes that increased transparency will lead to more efficient outcomes in the transportation industry. The FMCSA is currently seeking public comments on these proposed changes. Stakeholders are encouraged to review the proposed rule and submit their feedback to ensure that the final regulations effectively address the needs of all parties involved.
