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Comment Tracking Number: m7c-46ol-eteo

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Agency: FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION (FMCSA)
Document Type: Proposed Rule
Title: Transparency in Property Broker Transactions
Document ID: FMCSA-2023-0257-0001

Comment:
Brokers circumvent 49 CFR § 371.3 by requiring carriers to sign waivers that nullify their right to review transactional records. This regulation mandates brokers to maintain and provide access to financial records for transparency and to prevent price manipulation. However, these waivers effectively strip carriers of this protection, undermining fair market practices.

By restricting access to transaction details, brokers have created an environment where freight rates are manipulated without oversight. This distorts fair competition, suppresses carrier earnings, and consolidates market power in favor of brokers. This is dangerous. Such practices erode trust and stability within the trucking industry, harming over 900,000 small carriers the most. A continuation of non compliance could eventually destabilize the trucking industry.

To address this issue, the FMCSA should amend 49 CFR § 371.3 to explicitly state that this law is unwaivable. Strict enforcement should be implemented for four years to ensure compliance. This period would allow for data collection to evaluate the impact and determine if further adjustments are necessary.

Additionally, the FMCSA should establish a clear list of consequences for violations, with escalating penalties for repeat offenses. These should include fines, increased scrutiny, and eventual suspension or termination of broker authority in extreme cases. Strong enforcement measures will deter noncompliance and help restore fairness to the industry.

Everyone should be deeply concerned about what happens when brokers, double brokers, and dispatch services outnumber carriers and drivers. As these intermediaries continue to grow while the balance of power shifts entirely away from those who physically move the freight. Carriers will struggle to survive under excessive rate manipulation and shrinking margins. If this trend continues unchecked, the trucking industry could face a complete collapse, leaving the economy in turmoil as the nation loses its most vital transportation backbone.

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