?? TIA's Take: Transparency, Fraud, New DOT Leader

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Good afternoon. We're hearing from TIA's new President and CEO, Chris Burroughs on the latest broker transparency rulemaking, freight fraud, and President Elect Trump's DOT Secretary pick Rep. Sean Duffy.

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Tranparency, Fraud & a New DOT Boss – What’s Ahead for Freight Brokers?

In a media call with newly minted TIA President and CEO Chris Burroughs, joined by two member company leaders, we got an inside look at the biggest challenges and opportunities shaping freight brokerage in 2025.

From tackling a the 400% surge in fraud to grappling with freshly released FMCSA proposals on broker transparency and adjusting to a new DOT Secretary under the Trump administration, here’s what you need to know.

FMCSA’s Transparency Proposal: What’s on the Table

The FMCSA’s newly proposed rule aims to overhaul broker record-keeping requirements in response to years-long petitions from trucking groups like OOIDA and SBTC. While it addresses some concerns, the agency’s approach has sparked debate:

Key elements of the NPRM:

1. Electronic record-keeping: Brokers must maintain transaction records in an electronic format.
2. 48-hour record provision: Brokers must provide transaction records within 48 hours of a request.
3. Revised record contents: Transaction records must meet updated standards for transparency.
4. Requests on demand: Records must be available to carriers without undue delays.

Burroughs highlighted concerns about compliance costs and unintended consequences:

• Operational strain: Managing thousands of carrier requests could be overwhelming. One member remarked, “We work with 18,000 carriers—it’d be a logistical nightmare.”

TIA members on the call highlighted concerns about compliance costs and unintended consequences:

• Operational strain: Managing thousands of carrier requests could be overwhelming. One member remarked, “We work with 18,000 carriers—it’d be a logistical nightmare.”
• Contractual conflicts: Many shipper contracts, especially federal ones, include non-disclosure agreements. Sharing transaction details could put brokers in breach of contract.
• Market implications: Another member warned of “a slippery slope” undermining free-market principles, likening it to forcing retailers to disclose wholesale prices to customers.

Fraud: A Billion-Dollar Freight Industry Crisis

“The FMCSA told us there were 80,000 complaints in the National Consumer Complaint Database dealing with fraud or unlawful brokerage activities, and they’ve done very little to address them.”

Fraud remains a top concern, with Burroughs and member leaders emphasizing the need for stronger enforcement and collaboration. Freight fraud, including identity theft and double brokering, has surged 400% since 2022, costing the industry over $1 billion annually.

Legislative priorities:

• Principal place of business: TIA supports requiring brokers and carriers to have verifiable business locations, eliminating ghost companies operating out of P.O. boxes.
• Multiple authority flags: The FMCSA’s system must identify suspicious patterns, like one individual owning dozens of MC numbers.
• Accountability through penalties: Without enforcement of penalties, bad actors continue their schemes with impunity.

Burroughs pointed out the need for technology-driven solutions, citing examples like TIA’s Watchdog tool to help brokers vet carriers.

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Trump’s DOT Pick: What It Means for Brokers

As the freight industry adjusts to a new political landscape, Sean Duffy’s nomination as DOT Secretary could usher in significant changes. During the call, Burroughs expressed optimism about engaging with Duffy, who brings strong Capitol Hill connections and an understanding of transportation policy.

“Sean Duffy knows the inner workings of Capitol Hill and brings a unique perspective to the role of DOT Secretary. We had a relationship with him when he was in Congress, and I’m optimistic about working together.”

What’s ahead:

Safety Fitness Determination: TIA will push for long-overdue updates to carrier rating systems, moving from physical audits to data-driven evaluations.

"Currently, 92% of trucking companies are unrated because the safety fitness determination system is outdated and relies on physical audits. We’ve been advocating for data-driven evaluations to address this issue...and get that number down to zero."

Independent contractor clarity: Burroughs hopes for a rollback of Biden-era ambiguity, restoring Trump’s first-term approach to labor classifications.

“No matter who the pick is, our approach remains the same: building relationships, presenting our priorities, and pushing for solutions that benefit the entire supply chain.”

During the call, Burrough's made it clear he hadn't had the chance to be fully briefed on the new rule proposal and cautioned that Duffy has not been elected. Still, it'll be a complex environment ahead of government regulatory changes, new broker transparency obligation...combined with the rampant fraud challenges. He's got his work cut out for him.

?? THE FREIGHT CAVIAR CORNER

• Podcast: ShipperCRM announced Will Jenkins' investment and partnership. In this interview, we detail why Jenkins sees ShipperCRM (a FreightCaviar product) as the next big thing.
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• Freight Jobs: Find the latest freight job listings here.