Recommendations to Strengthen Transparency and Protect Carriers in Government-Freight Brokerage
Hello,
I am writing to respectfully recommend improvements to transparency and accountability within government freight movements, particularly where third-party logistics brokers (TSP-participating brokers) are involved.
This arises from my effort to understand why vetted, approved motor carriers—with real assets, real operating costs, and federally mandated safety responsibilities—are routinely forced to compete directly against brokers for DoD freight. When a broker wins a bid that a carrier has also bid on, the result is harmful to the trucking industry: critical transportation dollars that should support equipment, maintenance, and safety are diverted to an intermediary that owns no trucks, operates no equipment, and assumes none of the risk. Redirecting freight revenue to a non-operating middleman weakens the financial stability of carriers and, ultimately, has a negative impact on highway safety. These diverted dollars often represent the difference between completing timely safety repairs and operating equipment that becomes increasingly unsafe on the road.
Your team’s GFM portal already demonstrates the value of transparency by allowing Transportation Service Providers (TSPs) to view rates, tenders, and payment details for the loads they handle. Unfortunately, many brokers participating in government freight simultaneously require motor carriers to waive the very transparency that the government itself upholds.
I have documented—and have heard from many others in the industry—that some brokers withhold funds, fail to remit full accessorial payments, or use contract clauses that appear to be inconsistent with federal requirements governing broker conduct. These practices are harmful, especially given the essential role that motor carriers play in supporting government supply chains.
Several common contractual provisions demanded by these brokers raise serious concerns:
- Waiver of 49 U.S.C. §14101(b) – a statute that applies strictly between shipper and carrier, not brokers.
- “No Back Solicitation” Clauses – which ironically rely on transparency for enforcement, while denying carriers transparency elsewhere.
- Waivers of 49 CFR 371.3 – the federal transparency regulation that guarantees carriers access to transactional records.
- Overreaching Indemnification Requirements – forcing carriers to pay all legal fees incurred by the broker and shipper, regardless of culpability.
Taken together, this broad collection of contractual waivers may indicate that some brokers are operating outside the spirit—or possibly the letter—of federal law. Ultimately, however, the focus of this correspondence is transparency.
Congressional Recognition of the Vital Role of Motor Carriers
It is important to note that both chambers of Congress have formally acknowledged the essential national importance of America’s motor carriers:
- U.S. Senate – S.Res. 827 (118th Congress, 2024)
- U.S. House – H.Res. 508 (119th Congress, 2025)
- Senate Hearing – “The State of Transportation and Critical Infrastructure: Examining the Impact of the COVID-19 Pandemic” (116th Congress)
These resolutions and hearings recognize that the trucking industry is “the backbone of the United States economy” and that American truck drivers are “indispensable to the well-being of the nation,” delivering crucial goods including medical supplies, food, and emergency relief.
Given this national reliance, maintaining transparency and fairness for carriers—especially when moving freight for the federal government—should be a matter of high priority.
Recommendation: Prioritize Asset-Based Carriers in the GFM and Require Asset-Based Brokers to Declare a Single Role When Bidding
For freight transported on U.S. highways, priority within the GFM system should be given to asset-based motor carriers rather than brokerage intermediaries. Highway safety is a national priority—so important that the Federal Motor Carrier Safety Administration (FMCSA) exists solely to regulate and protect it.
Motor carriers bear the full responsibility for maintaining equipment, ensuring driver readiness, and complying with rigorous safety standards. Non-Asset based Brokers, by contrast, own no equipment, assume no operational risk, and do not contribute to the upkeep or safety of the vehicles that actually move government freight. Given these realities, there is no practical justification for diverting transportation dollars away from the safety-critical service provider performing the work. Every dollar routed through a broker diminishes the carrier’s capacity to invest in maintenance, repairs, and compliance, all of which are essential to highway safety and national infrastructure integrity.
To further ensure fair competition and proper alignment with safety objectives, asset-based brokers should be required to choose a single role—either asset carrier or broker—when participating in Rate Based or Spot Bid Shipments bids. Allowing asset-based brokers to compete simultaneously as both creates an uneven playing field and distorts rate competition. Requiring a declared role ensures rate transparency, prevents double-positioning, and supports a system where carriers compete on service, safety, and operational capability rather than contractual ambiguity.
Once implemented, the recommended transparency portal—which would allow the actual transporting carriers to enter their SCAC, the TSP SCAC, and the BOL number to view full payment breakdowns—would also enable the Department of Defense to verify compliance. Through this system, the DoD could easily confirm whether asset-based brokers adhere to their declared operational category, ensuring the integrity of the bidding process and the proper prioritization of asset-based carriers.
Prioritizing asset-based carriers and enforcing role clarity for asset-based brokers will strengthen highway safety, reduce unnecessary costs, and ensure that government transportation spending directly supports the entities responsible for safe, reliable freight movement.
Recommendation: Prohibit Broker Retention of Carrier-Owned Accessorials
For obvious reasons, I strongly recommend that brokers be prohibited from withholding any portion of accessorial payments intended to reimburse the carrier’s actual costs. This includes detention, layover, drayage, and similar charges.
These funds compensate the carrier for real expenses incurred. Allowing brokers to retain any portion is inappropriate and undermines the carrier’s ability to operate safely and sustainably.
Recommendation: Establish a Government Transparency Mechanism for Non-Approved Carriers That Haul Gov't Loads Through Brokers
To ensure compliance with 49 CFR 371.3, I respectfully request that the government establish a mechanism enabling carriers who haul government freight to verify transparency directly.
One possible method would be:
- A secure online portal where the hauling carrier enters:
• Their SCAC code - Logged for record keeping, Gov't can see actual carrier data. There are many benefits here.
• The TSP’s SCAC
• The Bill of Lading (BOL) number
- Once authenticated, the system displays the full payment breakdown:
• Rate paid to the broker/TSP
• All accessorial amounts billed and paid
• Confirmation that the carrier received the full amount owed
This would ensure transparency, strengthen government oversight, protect carriers from abusive intermediary practices, and support the health of the trucking industry.
Federal law already provides for transparency under 49 CFR 371.3, and expanding transparency protections within government freight seems both logical and essential. Supporting the financial and operational stability of the U.S. motor carrier industry is fundamentally aligned with the government’s own interests, given the industry's recognized importance to national infrastructure and economic health.
I appreciate your consideration of these recommendations and would be happy to provide additional documentation, examples, or discussion if needed.
Thank you for your time and attention.
Respectfully,
Leander Richmond
Carriers United