Small Business Coalition Questions Broker Claims, Opposes New FMCSA Standards
The Small Business Transportation Coalition (SBTC) recently filed a petition questioning the Transportation Intermediaries Association's (TIA) request for new standards from the Federal Motor Carrier Safety Administration (FMCSA) following the Supreme Court's ruling in Montgomery v. Caribe Transport II. The SBTC argues that the FMCSA should assume a more limited regulatory role and suggests that the TIA should seek support from Congress rather than an administrative agency.
Quick Overview
- The Small Business Transportation Coalition (SBTC) is challenging a petition filed by the Transportation Intermediaries Association (TIA) following a landmark Supreme Court ruling.
- The coalition says the Federal Motor Carrier Safety Administration (FMCSA) should play a more limited role than what TIA is requesting. According to the petition TIA filed last month, new federal standards would help brokers and shippers assess safety risks when selecting carriers.
- "It appears TIA should be knocking on Congress's door rather than the agency's," SBTC said in its latest petition. The Supreme Court's ruling in Montgomery v. Caribe Transport II et al. dismantled the legal defenses brokers could use in response to negligent hiring claims.
In-Depth Analysis
TIA is asking the FMCSA to step in, and its CEO and President Chris Burroughs told Trucking Dive that the agency could provide brokers with more information. He mentioned that possible solutions include improving the rating process or speeding up regulatory reviews.
"We are open to any ideas," Burroughs said. "We just need clarity." He stated that the currently available data is severely insufficient for brokers and shippers to make reliable decisions about carrier safety.
The industry group wants the agency to more clearly indicate which carriers have been deemed "unfit for safe operations" by the FMCSA, and to confirm whether carriers are properly registered and have minimum insurance coverage.
TIA also wants the agency to provide a list of "high-risk" carriers.
"Asking the FMCSA to better define 'safe' is not shirking responsibility—it is asking the agency to fulfill its duties so that other parties can do their jobs more effectively," Burroughs also said in a LinkedIn comment.
SBTC counters that the FMCSA should limit the "high-risk" carrier list to only those carriers the agency has rated as "unfit." The group points out that an unrated carrier does not mean it is unsafe, just that the agency has not yet conducted a full evaluation.
Burroughs said TIA is seeking relief through both the FMCSA and Congress in the wake of the Montgomery ruling, but he added that lawmakers have failed to bring about substantial change for years.
The impact of the Supreme Court ruling on the brokerage industry has reached some carriers, with C.H. Robinson Worldwide having already revised its carrier selection criteria.