Carriers United Calls for Enforcement of Broker Transparency Rules Amid Rising Freight Fraud
By Carriers United News Desk
Carriers United fully supports the lawful and ethical operation of freight brokerages throughout the United States. Brokers play an essential role in the nation’s supply chain, connecting shippers and motor carriers and enabling freight to move efficiently across the country.
However, an increasing share of the broker segment—many, if not most, according to industry observations—is no longer operating in accordance with the federal rules and regulations they agreed to follow when obtaining their authority. This growing pattern of non-compliance is contributing directly to today’s surge in freight fraud, freight theft, and the rise of double brokering.
A Legal Oath Many Brokers Have Forgotten
Every entity operating under a USDOT authority—whether engaged in air, sea, rail, motor carrier operations, or freight brokerage—must sign an oath affirming they will comply with all applicable federal laws and regulations. This attestation is not symbolic. It is a mandatory prerequisite to receiving federal authority. Without signing it, authority is never granted.
Despite this, broker transparency obligations outlined in 49 CFR 371.3 have been systematically weakened over the last three decades. Many brokers began inserting waivers, nondisclosure clauses, or contract language designed to prevent motor carriers from accessing transaction records that federal regulations were explicitly written to make available. These practices have eroded accountability across the industry.
How Contract Ambiguity Fueled Today’s Fraud Explosion
In the modern digital freight environment, opacity has real consequences. The lack of transparency—caused in part by broker-written waivers—has created ideal conditions for double brokering and identity-based freight fraud to flourish.
When carriers cannot verify the origin of a load, confirm the legal chain of tender, or see whether a load has already been rebrokered, fraudulent actors are able to disguise themselves as legitimate intermediaries. Millions of dollars in freight theft now occur annually because legitimate carriers are prevented from accessing the information the law was designed to guarantee them.
Transparency would not only make the marketplace more efficient and more profitable for legitimate carriers—it would also dramatically reduce fraud by exposing unauthorized intermediaries before freight ever hits the road.
A Call for Accountability and Enforcement
Carriers United believes that freight brokers who operate outside the regulations upon which their authority was granted are violating the very oath that secured them their position in the industry.
We further contend that federal authorities should apply a structured enforcement process to bring the broker segment back into compliance:
- Immediate corrective action for violations of 49 CFR 371.3 and alll other regulations
- Suspension of authority until full compliance is achieved
- Escalating penalties for repeat offenses
- Revocation upon a fourth violation
- A five-year prohibition from operating a brokerage for owners—and, where applicable, immediate family members—when revocation occurs.
These measures are not punitive for the sake of punishment; they are a necessary safeguard for the integrity of the U.S. freight market.
Why This Matters to the American Economy
The U.S. freight system is foundational to the economy. Every consumer product, every manufacturing input, and every shipment that keeps American businesses running depends on a transparent and trustworthy logistics chain.
Fraud, double brokering, and regulatory evasion introduce operational risks, inflate costs, and undermine both safety and national economic security. The freight industry is simply too important—and too closely tied to public safety—to allow non-compliance to continue unchecked.