The purpose of 49 U.S. Code § 13101 - Transportation policy is for the Secretary of Transportation (FMCSA) to promote sound economic conditions in transportation, including sound economic conditions among carriers. To encourage the establishment and maintenance of reasonable rates for transportation, without unreasonable discrimination or unfair or destructive competitive practices. To encourage fair wages and working conditions in the transportation industry. Enable efficient and well-managed carriers to earn adequate profits, attract capital, and maintain fair wages and working conditions. Provide and maintain service to small communities and small shippers and intrastate bus services, and many other matters. 49 U.S. Code § 13101 - Transportation policy (b) "This part shall be administered and enforced to carry out the policy..."
Our issues are as follows:
Brokers - Broker Transparency/Contract Waivers
Freight brokers negotiate rates based on market capacities, Which causes rates to drop below a reasonable threshold regarding the cost of doing business as a carrier. According to the American Trucking Research Institute, the average price of operating a truck is $2.25 per mile. Allowing these poor business practices negates safety and violates transportation policy. Vehicle maintenance is compromised when carriers are not adequately compensated for their work. Price gouging has been another concern for carriers. Brokers have been allowed to force carriers to waive 49 CFR 371.3 Records to be kept by Brokers (c) (Broker Transparency) by withholding work if the carriers refuse to sign the contract. Brokers also include clauses that prevent the carrier from pursuing other beneficial parties for payment therefore eliminating all other options to recover compensation. This requirement violates 49 USC §14101 (b) “The parties may not waive the provisions governing registration, insurance, or safety fitness.” This is regarding 49 USC §13904. Registration of brokers (e) Regulation to Protect Motor Carriers and Shippers. The Federal Motor Carriers Safety Administration has been reluctant and slow to prioritize these issues.
Back Solicitation - Brokers require a contractual clause that the carrier will not solicit direct freight from the shipper within a certain period of the termination of the contract. The NATA feels that a non-compete clause is a "Restraint of Trade" and enforcement needs to be taken.
Fraudulent Brokers - The FMCSA has put little effort into remediating the issue of fraudulent brokers. Double brokering has been an issue for a long time and we are seeing people doing business in the United States that don't have residence within the United States. Illicit practices within the trucking industry create a strain on our supply chain and safety concerns.
Rates and Wages - There must be a measure for adequate rates in the trucking industry. Allowing rates to diminish creates safety-related concerns. It drives small carriers out of the business, which creates economic hardship for small businesses and Low rates lead to low wages, which pushes good drivers out of the trucking industry.
Detention Time - Truck drivers spend a lot of time at docks. It is time lost and poor utilization of equipment. Trucking companies and drivers cannot make up for lost time. Rail carriers and Shipping companies charge demurrage for holding their equipment in excessive time. The trucking industry needs a set standard for detention fees and an enforcement mechanism to ensure that shippers/receivers are paying the cost.
Drivers Wages - Many drivers are paid piece work and are required to perform work that is not driving-related. Trucking companies like to inform drivers that the pay is built into their rate. In many cases, trucking companies receive compensation for assessorial work and do not pay the driver for the work.
Speed limiters - The FMCSA is attempting to promulgate a rule to set a national speed limit for commercial motor vehicles over 26,000 pounds using a speed limiter device (Engine Control Unit). As a joint effort, in 2016, the FMCSA claimed the (National Highway Traffic Safety Administration's (NHTSA) authority for such a device is within 49 USC 3101, the Secretary of Transportation is responsible for prescribing motor vehicle safety standards that are practicable, meet the need for motor vehicle safety. The FMCSA claims its authority under 49 U.S.C. 31502 (b)(1) qualifications and maximum hours of service of employees of, and safety of operation and equipment of, a motor carrier; and (2) qualifications and maximum hours of service of employees of, and standards of equipment of, a motor private carrier, when needed to promote safety of operations”. Apparently, the FMCSA quoted laws that do not apply to their claims for regulatory purposes.
The NATA finds that the speed limiter proposal lacks statutory authority due to repealing the national speed limit under the National Highway System Designation Act of 1995.
https://www.congress.gov/bill/104th-congress/senate-bill/440
Loading and Unloading -
Hours of Service Rules - Please visit Hours of Service Changes page.
Our Solution:
The FMCSA has devoted too much of its resources to regulations that have restricted the movement of freight and that have impeded economic growth without the benefit of safety. The NATA feels that poor regulatory actions have diminished small carriers to the benefit of large, corporate, carriers and freight brokers. The FMCSA has established no financial regulations as prescribed in transportation policy and has failed to recognize the safety benefits of doing so. while at the same time, the Surface Transportation Board has discontinued functioning with Rate Bureaus and decided to suspend motor carrier general rate increases. The NATA believes that the free market is an adequate method for pricing in most businesses but we feel that the private sector in the trucking industry has developed processes to control the market. The NATA feels that the FMCSA is a captured agency and the time has come to investigate that possibility. The NATA feels that the Surface Transportation Board must create an advisory committee regarding the business in trucking and how small carriers may be protected as a disadvantaged sector of the trucking industry. In addition to the advisory committee, the NATA would like Congress to work on legislation to allow the creation of a Self-Regulatory Organization. The trucking industry must be better organized and structured in a manner that best benefits all of the participants in the industry, including the drivers who require better working conditions and wages.