On November 16, 2022, FMCSA issued guidance regarding the definition of what constitutes a “broker” and a “bona fide agent” of a broker. The guidance is issued pursuant to a mandate of the Infrastructure Investment and Jobs Act (“IIJA”), which directed FMCSA to consider the role of so-called “dispatch services” in transportation and whether such services, which often purport to “represent” multiple motor carriers, can be considered a “bona fide agent” of a motor carrier. The question of whether a dispatch service can be a bona fide agent of a motor carrier is important because bona fide agents of motor carriers are not required to hold broker authority when acting in the capacity of an agent of the motor carrier.

Under existing regulations, a bona fide agent of a motor carrier is defined as “persons who are part of the normal organization of a motor carrier and perform duties under the carrier’s directions pursuant to a preexisting agreement which provides for a continuing relationship, precluding the exercise of discretion on the part of the agent in allocating traffic between the carrier and others.” 49 C.F.R. 371.2(b).  GCCA Service Partner Scopelitis has issued a Law Alert providing additional analysis on the FMCSA guidance.

Published Date

November 21, 2022

Topic

Government & Regulatory Affairs

Region

United States

Sector

Controlled Environment Building, GCCA Transportation, GCCA Warehouse