06/09/2022
FMCSA investigating Broker/Dispatch roles and financial responsibility and moving closer to settling a controversy over how to define truck brokers and dispatchers and also clarifying the level of financial penalties for unauthorized brokerages.
This notice is scheduled to be published on Friday.
They're asking for the publics help by answering a series of questions “to inform future guidance on the definitions of broker and bona fide agents,” the agency stated.
Questions for which FMCSA is seeking responses include:
What evaluation criteria should FMCSA use when determining whether a business model/entity meets the definition of a broker?
Provide examples of operations that meet the definition of broker in 49 CFR 371.2 and examples of operations that do not meet the definition in 49 CFR 371.2.
What role should the possession of money exchanged between shippers and motor carriers in a brokered transaction play in determining whether one is conducting brokerage?
How would you define the term dispatch service? Is there a commonly accepted definition?
What role do dispatch services play in the transportation industry?
Do dispatch services need to obtain a business license/employer identification number from the state in which they primarily conduct business?
If a dispatch service represents more than one carrier, does this in and of itself make it a broker operating without authority?
When should a dispatch service be considered a bona fide agent?
What role do bona fide agents play in the transportation of freight?
Electronic bulletin boards match shippers and carriers for a fee. The fee is a membership fee to have access to the bulletin board information. Should electronic bulletin boards be considered brokers and required to register with FMCSA to obtain broker operating authority? If so, when and why?
How has technology changed the nature of freight brokerage, and how should these changes be reflected, if at all, in FMCSA’s guidance?
Are there other business models/services, other than dispatch services and electronic bulletin boards, that should be considered when clarifying the definition of broker?
Are there other aspects of the freight transportation industry that FMCSA should consider in issuing guidance pertaining to the definitions of broker and bona fide agents?
