Trucking news and briefs for Thursday, Dec. 21, 2023:
The Federal Motor Carrier Safety Administration in November issued a final rule that, among other things, will allow the agency to shut a broker or freight forwarder down quickly in the event of a drawdown on a bond or other required financial security with valid claims, or for other reasons.
The Owner-Operator Independent Drivers Association said it’s generally supportive of the rule, noting that it’s an improvement over the notice of proposed rulemaking that preceded the final rule in January 2023.
However, OOIDA said in a petition for reconsideration that the rulemaking “can be supplemented to further alleviate the concern of broker nonpayment of claims.” The group added that “various modifications can improve the economic health of the broker/motor carrier component of the transportation industry. Additionally, small-business motor carriers who rely upon brokers will be spared financial loss from both brokers and ineffective bonds or trusts under these suggested amendments.”
Among changes to the final rule OOIDA is requesting:
“OOIDA supports FMCSA finalizing the Broker and Freight Forwarder Financial Responsibility rule, but believes the agency can further address problems with the broker bond claims process,” the group concluded. “The final rule should be enhanced to ensure transparency when a broker/freight forwarder’s financial responsibility falls below $75,000. The agency should also stipulate a 7-day period for the surety provider or financial institution to investigate and determine the validity of the claim. These and other modifications will promote a fair working environment between brokers/freight forwarders and motor carriers that will best serve the public interest.”
[Related: FMCSA tightens screws on brokers who 'do not intend to pay' carriers: Final rule]
