Broker Regulation
During the 110th Congress, there were several legislative initiatives to re-regulate the third party logistics industry under the guise of fuel surcharge relief. Among these were S. 2910, H.R. 5934, H.R. 5977 and H.R. 5997 known as the TRUCC Act or the “Trust in Reliable Understanding of Consumer Costs Act”.
The bills were essentially identical and would amend the sections of the Interstate Commerce Act dealing with the leasing of motor vehicles, billing and collection practices to ensure that a motor carrier, broker or freight forwarder using motor vehicles not owned by it and which use fuel for which it does not bear the cost, provide to the person bearing that cost a payment equal to the charges invoiced or otherwise presented to the person responsible for payment of the fuel surcharge. In addition, the legislation mandates that “a written list that specifically identifies any freight charge, brokerage fee or commission, fuel surcharge or adjustment and any other charges invoiced or otherwise presented to the person described in this paragraph.
TIA opposed these bills and continues to oppose any effort to re-regulate the industry. Brokers, forwarders and motor carriers should not be required to reveal their margins as required by the TRUCC Act. TIA will continue to work to keep language addressing margin disclosure and broker regulation out of the Highway Reauthorization bill during the 111th Congress.
The Department of Defense Authorization Act for Fiscal Year 2009, passed in late September 2008, included language that mandates the pass-through of any fuel surcharges collected on DOD Loads to the person who bears the cost of the fuel. The bill directs that language must be inserted into all DOD contracts that outlines the pass-through requirement with motor carriers, brokers and freight forwarders. The legislation eliminated a proposed shipment-by-shipment reporting requirement because DOD already posts the amount of its fuel surcharge on its website. Also eliminated was a private right of action thereby reducing the threat of class-action lawsuits against motor carriers, brokers and freight forwarders.
