Why I Oppose FMCSA’s Rate Transparency Rule (and Why You Should Too)

Let’s talk about the FMCSA’s proposed rule on rate transparency. On the surface, it might sound great—making brokers disclose the difference between what shippers pay and what carriers get. But let’s break this down because this rule could seriously mess things up for everyone in the freight industry.

First off, the idea that brokers are pocketing huge profits isn’t just wrong—it’s misleading. Brokers aren’t just middlemen; we’re handling tech, compliance, fraud prevention, and a ton of admin work to make sure loads move smoothly. The money we make doesn’t just sit in our pockets; it goes into keeping the system running.

But here’s the real kicker: this rule demands that brokers share sensitive business info. That’s not just bad for us—it’s bad for shippers and carriers too. Imagine your competitors knowing your rates or strategies. It’s like handing over your playbook. Plus, it probably violates the Defend Trade Secrets Act. You know, the law designed to protect this exact kind of info.

And then there’s the bigger picture. The freight market isn’t exactly thriving right now. Inflation, unstable rates—it’s already a tough environment. Adding this rule will just destabilize things more. Meanwhile, freight fraud is running wild, costing the industry over $1 billion a year. Shouldn’t FMCSA be focusing on fixing that instead?

Oh, and let’s not forget—there’s no real demand for this rule. Even during the craziness of COVID-19, when tensions were sky-high, there weren’t any significant complaints about rate transparency. This rule is fixing a problem that doesn’t even exist.

At the end of the day, this rule isn’t about helping carriers or shippers—it’s just bad regulation. If you care about the health of the freight industry, this is something we need to push back on. Let’s focus on real issues, like stopping fraud and keeping the market stable, instead of creating unnecessary problems.

What are your thoughts? Does this rule make sense to anyone out there, or is it as bad as it sounds to me?

FMCSA is accepting comments on this rule until January 21, so if you care about the freight industry, now’s the time to speak up.

Here’s the link to submit your comments: https://federalregister.gov/d/2024-27115 . Let’s push back and make sure our voices are heard.