FMCSA Releases Transparency in Property Broker Transactions Proposed Rule
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The Federal Motor Carrier Safety Administration (FMCSA) has introduced a notice of proposed rulemaking (NPRM) titled “Transparency in Property Broker Transactions.” Published on November 20, 2024, the rule aims to address what FMCSA describes as “information gaps” and “power imbalances” in brokered transportation agreements. However, the proposed changes have sparked significant debate within the industry, raising questions about their necessity, effectiveness, and impact on stakeholders.
The proposed rule includes several key provisions intended to enhance recordkeeping and information sharing:
Mandatory Electronic Recordkeeping:Brokers would be required to maintain electronic records to facilitate access for carriers and shippers.
Expanded Record Requirements: Brokers must document charges, payments, and related claims for all shipments, regardless of whether the transaction is classified as brokerage or non-brokerage.
Regulatory Obligation for Record Access:Brokers’ duty to provide transaction records would shift from a right requested by carriers and shippers to a mandatory regulatory requirement.
48-Hour Record Access Deadline: Brokers would need to supply requested records within 48 hours of delivery.
Importantly, FMCSA stopped short of prohibiting brokers from including contract provisions that waive access to financial records, citing jurisdictional limitations.
The FMCSA’s proposed rule underscores the ongoing debate about balancing transparency with regulatory efficiency in the transportation industry. With the public comment period underway, the coming weeks will provide a critical forum for industry voices to shape the future of broker transparency regulations. Stakeholders are encouraged to submit comments for Docket Number FMCSA-2023-0257 here. Comments must be received on or before January 21, 2025.
