Last month, the Federal Motor Carrier Safety Administration asked for input from the trucking industry to help guide the agency in developing future guidance on the definitions of “broker” and “bona fide agents,” as required by the Infrastructure Investment and Jobs Act (IIJA), legislation passed last year by Congress and signed into law by President Biden.
FMCSA asked respondents to answer 13 specific questions related to brokers, bona fide agents, dispatch services and more. During the month the comment period was open, the agency received 92 comments from a variety of groups and individuals, including trucking groups, brokerage groups and individual brokers and carriers.
One of the biggest topics of discussion among commenters was the definition of “dispatch services” and the role they play in trucking -- and whether they should be required to obtain broker operating authority.
The Owner-Operator Independent Drivers Association in its comments said that can depend on what the dispatch service is actually doing for the carrier. OOIDA said in general, if an intermediary is handling money between the shipper and the motor carrier, then the intermediary is conducting a brokered transaction and should have broker operating authority. However, if an intermediary is not directly handing money between a shipper and carrier, they should not be considered a broker.
“If the dispatch service is in party to the contract between the shipper and the carrier or plays a financial role directly between the shipper and the carrier, then they should need to obtain broker operating authority,” OOIDA said. “If the dispatch service holds themselves out as a contractor, and a carrier can hire them to work for them as part of their normal organization by signing an agreement with a continuing relationship whereby the carrier directs the duties of the dispatch service, then they should not need to obtain broker operating authority.”
The Transportation Intermediaries Association group, representing brokers and freight forwarders, said there is currently a “dangerous loophole” in FMCSA’s regulations for companies who operate as dispatch services for more than one motor carrier.
“Many such services are illegally operating as unlicensed brokers,” TIA said. “These services handle freight payments but do not meet the statutory licensing or financial security requirements otherwise applicable to brokers.”
