Owner-Operator Independent Drivers Association
For Immediate Release
OOIDA asks Congress to ensure transparency in broker transactions
(Washington DC, May 6, 2020) – The Owner-Operator Independent Drivers Association sent a letter to Congress today urging immediate action to help truckers know they are being compensated fairly.
Recent protests by truckers in Houston, Hartford, El Paso and other cities have largely focused on concerns that brokers are taking advantage of independent truckers. This has also been a central theme of the demonstrations currently taking place near the White House.
The economic downturn caused by COVID-19 has resulted in significant over capacity in trucking. This has driven freight rates to historic lows. Truckers who have helped keep the nation safe, healthy and supplied, are now struggling mightily. Many small motor carriers and owner-operators are concerned their businesses will not survive the crisis.
One long-time problem that has boiled over as a result of COVID-19 is the lack of transparency between brokers and motor carriers.
Brokers are third-party entities that contract with truckers to haul freight for shippers. Federal regulations require these brokers to maintain detailed records of their transactions with motor carriers. Motor carriers have the right to view this information, which includes how much a shipper is paying a broker and how much the broker is then paying the motor carrier. Unfortunately, brokers routinely circumvent these requirements.
The letter we sent today explains that brokers often find ways of avoiding federal regulations (CFR 371.3) requiring them to keep records of transactions and making them available to carriers. OOIDA demanded that brokers should immediately provide an electronic copy of each transaction record once the contractual service has been completed and that brokers should be prohibited from waiving 371.3 requirements. You can read a copy of the letter here.
The Owner-Operator Independent Drivers Association is the largest national trade association representing the interests of small-business trucking professionals and professional truck drivers. The Association currently has more than 160,000 members nationwide. OOIDA was established in 1973 and is headquartered in the greater Kansas City, Mo. area.