?? Maximize Your Prospecting with Better Follow Up Calls

?? Maximize Your Prospecting with Better Follow Up Calls

In today's?newsletter:

  • Independent Contractor Rule Hits Roadblock
  • Freight Market Looks Strong
  • Trump Holds Off on Mexico Tariffs
  • Big Changes for LTL Rates
  • Broker Transparency Divides Industry
  • Sales Pipeline Management & Follow Up [VIDEO]
  • Low Rates, Claims & More Q&A [VIDEO]


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We get questions on a variety of freight broker related topics all the time, and we love to answer them in our weekly show "The Final Mile", so make sure to drop us a line!

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What's going on this week?

?? IC Rule Showdown Paused.

The Biden administration’s independent contractor (IC) rule just hit a roadblock, thanks to the Trump administration’s legal maneuvering. A federal appellate court has granted a delay in oral arguments for a case brought by trucking firms, including the Louisiana Motor Transport Association (LMTA). The move suggests the U.S. Department of Labor (DOL) under Trump may be gearing up to scrap the Biden rule altogether. Legal experts predict the administration won’t defend the existing rule but will either reinstate the 2021 Trump-era IC standard or let the courts handle it.

This ongoing IC rule tug-of-war has defined federal labor policy for years, with each administration rewriting classification guidelines. The Biden rule, designed to make worker misclassification harder, faced trucking-backed lawsuits. Now, legal analysts are questioning its real-world impact, noting that courts, not agencies, ultimately decide IC status. With Trump back in office, a fresh rule could be on the horizon, but any quick changes may face legal hurdles—just as Biden’s attempt to undo Trump’s IC rule did in 2021.

?? Freight Market Looks Strong.?

Truckers can breathe easy—consumer spending on goods remains strong heading into 2025, keeping freight demand steady despite economic uncertainties. While Federal Reserve Chair Jerome Powell held interest rates steady last week, inflation remains the Fed’s top concern. But for carriers, the key takeaway is that goods inflation has cooled, making retail purchases more attractive. Durable goods like appliances and furniture have even seen price drops, which could encourage more spending and keep truckloads moving. Meanwhile, Q4 GDP growth came in weaker than expected at 2.3%, but the real story for trucking is shrinking inventories and resilient consumer demand.

Low inventory levels and steady buying trends are setting the stage for stronger freight volumes. While no one expects another pandemic-era shipping boom, shippers will need to restock, creating upward pressure on carrier rates. Add in the fact that consumer spending on durable goods boosted GDP, and the outlook for truckload demand looks promising. As the freight market finds its footing, truckers who weathered the rate downturn may finally see conditions shift in their favor.


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Trump Holds Off Tariffs.

President Trump has agreed to pause tariffs on both Canada and Mexico for at least 30 days, following separate discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum. The talks with Trudeau resulted in Canada committing to a $1.3 billion border plan to enhance security measures, including the appointment of a "Fentanyl Czar" to address the drug flow across the border. This pause was announced after a series of calls on Monday, just hours before the tariffs were set to be implemented.

Conversely, China has moved forward with its own tariff measures in response to U.S. actions, imposing 10-15% tariffs on certain U.S. products like oil, agricultural equipment, coal, and LNG. Additionally, China has begun an anti-monopoly investigation into U.S. companies and is implementing export controls on critical metals, signaling a more aggressive counter-response to U.S. tariffs.

Market sentiments are mixed; while there's relief due to the temporary suspension of tariffs on Canada and Mexico, there's ongoing concern about the economic impact of the U.S.-China trade spat. The U.S. tariffs on Chinese goods are still set to take effect, with the implications of China's retaliatory measures being closely watched by global markets.

These developments underscore the volatile nature of current international trade relations, with businesses and investors on high alert for further policy shifts that could affect global trade flows, inflation, and economic growth.


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?? Big Changes for LTL Rates.

LTL freight classification is getting a major overhaul, with the National Motor Freight Traffic Association, Inc. (NMFTA) shifting to a single density-based scale starting July 19. Originally set for May, the change was delayed to give shippers, carriers, and 3PLs more time to adjust. A public docket on the proposed updates drops Thursday, followed by a comment period through Feb. 25 and a public meeting on March 3. NMFTA urges shippers to start measuring freight dimensions now to avoid last-minute surprises. The goal? Simplify classifications, reduce confusion, and improve pricing precision.

With the move from 11 to 13 freight classes, shippers moving dense freight could see lower rates, while those relying on Freight of All Kinds (FAKs) may need to rethink their strategy. Experts compare the shift to moving from an all-you-can-eat buffet to a pay-by-the-ounce frozen yogurt model—more accurate and cost-effective. Industry leaders see this as a win for better pricing and efficiency, but shippers need to act now to understand how these changes impact their freight costs.

?? Broker Transparency: Industry Divided.

FMCSA’s proposed broker transparency rule has drawn more than 4,800 comments, with trucking groups split on whether it promotes fairness or oversteps regulatory bounds. The proposal aims to require brokers to disclose transaction records upon request and prevent waivers that strip carriers of their right to access those records. But while owner-operators and small carriers argue that these measures would level the playing field, major trade groups representing brokers and large carriers say the rule threatens competition, adds regulatory burdens, and could disrupt existing business models.

Big Players Push Back

The American Trucking Associations (ATA) and Truckload Carriers Association (TCA) oppose the rule, claiming it could harm brokers who play a key role in the supply chain. ATA argues that the rule is unnecessary and would "impose a burdensome layer of economic regulation" inconsistent with trucking deregulation. TCA insists that maintaining confidentiality in freight transactions is vital, warning that forced transparency could violate antitrust laws and lead to price-fixing concerns. The TIA (Transportation Intermediaries Association) (TIA) went further, calling the proposal a "solution in search of a problem" and urging FMCSA to focus on combating freight fraud rather than regulating brokers.

Owner-Operators Demand Fairness

On the other side, the National Owner Operators Association (NOOA) and North American Punjabi Trucking Association (NAPTA) argue that transparency is long overdue. They say brokers currently hold too much power over carriers by controlling access to freight and withholding key pricing details. NOOA dismissed claims that compliance would be costly, pointing out that brokers already keep transaction records digitally and could easily share them. NAPTA CEO Raman Dhillon emphasized that a lack of transparency has led to payment disputes and mistrust, making this proposal a necessary step toward fairness.

Intermodal and Movers Wary of Government Overreach

The International Association of Movers (IAM) and Intermodal Association of North America (IANA) warn that the rule could backfire. IAM is concerned that exposing proprietary rate data would hurt negotiations and drive up costs. IANA argues that the rule "sets a dangerous precedent for government intrusion into private business operations" and could erode trust between brokers and carriers.

What’s Next?

With strong opinions on both sides, Federal Motor Carrier Safety Administration faces a tough decision. Owner-operators see this as a fight for fairness, while brokers and large carriers view it as a regulatory overreach that threatens competition. If the rule moves forward, it could reshape freight brokerage dynamics—potentially giving small carriers more power but also raising concerns about government intervention in private contracts. The industry is watching closely to see if FMCSA stands firm or backs down under pressure from powerful trade groups.


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Our Latest Podcast Episode????

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Sales Pipeline Management & Follow Up | Episode 279

We recently talked about prospecting and lead generation, but how do you follow up with a shipper? What do you say? When should you follow up? These are common questions and we're breaking this down in detail on this second episode in a series on freight broker prospecting.


Weekly Q&A ??♂?

Low Rates, Claims, & More Q&A | Final Mile 79

In this episode, the hosts tackle listener questions about becoming a freight broker as a non-citizen, understanding freight rates, and handling claims in co-broker situations. They discuss the legalities and practicalities of starting a freight brokerage without US citizenship, the dynamics of freight rates influenced by supply and demand, and the importance of having clear contracts in co-broker agreements to manage claims effectively.

Nate Cross & Benjamin Kowalski answer your freight brokering questions and discuss:

  • Working as a Freight Broker as a Foreigner
  • Low Rates Explained
  • Freight Claims with a Co-Broker Arrangement


Resources???

All of our content is available on our website in the resources section.? It's packed full of blogs, videos, podcast episodes, and more!

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Freight Broker Basics Course


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The Freight Broker Basics Course from Freight 360?provides you with everything you'll need to become a freight broker, as well as the step-by-step process to move freight, locate carriers as well as how to locate customers.

These training modules are written and taught by experienced freight brokers and industry experts.


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