TIA President Chris Burroughs & Trinity CFO Doug Potvin Discuss the FMCSA Transparency Issue | Episode 45
The logistics industry faces a critical moment as the January 21 deadline approaches for comments on the Federal Motor Carrier Safety Administration’s (FMCSA) NPRM aimed at enhancing transparency in brokered motor-carriage transactions. The push for transparency brings both opportunities and challenges, raising important questions about how to balance regulatory compliance with operational efficiency and stakeholder collaboration.
In episode 45 of Banyan Technology’s Tire Tracks® podcast, Chris Burroughs, President and CEO of the Transportation Intermediaries Association (TIA), and Doug Potvin, CFO of Trinity Logistics, discuss the far-reaching effects of CFR 371.3 and broker transparency regulations.
“This is an interesting dilemma for the capitalist society we operate in,” said Potvin. “The proposed regulation could disrupt the delicate balance between Shippers and carriers, increasing costs and hindering the efficiency that keeps the supply chain moving. Collaboration, not excessive regulation, is the key to ensuring everyone succeeds.”
The podcast examines the history behind freight brokerage regulations, exploring their origins and relevance in today’s evolving logistics landscape. The conversation highlights the challenges of balancing the growing demand for transparency with the need to maintain operational efficiency. Burroughs and Potvin also emphasize why collaboration among industry stakeholders, rather than overregulation, is essential to building a resilient and sustainable freight ecosystem.
“Transparency doesn’t have to come at the cost of progress. By working together, we can achieve a regulatory balance that benefits everyone,” said Burroughs.
FMCSA Rule Episode Key Points
- Chris Burroughs outlines FMCSA proposed regulation CFR 371.3.
- The origins of broker transparency regulations.
- “Freight rebating” and why this was a major concern for regulators.
- Time frames and the level of detail CFR 371.3 requires.
- How the new regulations could unintentionally harm small Carriers.
- The potential consequences of increased regulation on carriers and the end consumer.
- Why regulators have targeted brokers and reasons why this focus is misplaced.
- Ways transparency regulations could negatively impact the industry and supply chain.
- How the industry can raise their concerns about CFR 371.3.
- Why fraud prevention should be a priority instead of broker transparency.
“In the end, I believe [rate negotiations] is a happy medium that is done between both parties, between the shippers and customers.” — Doug Potvin [0:10:05]
“This is going to hurt the small carriers more than the large carriers who have salesforces to go work with these brand-name companies to source freight.” — Chris Burroughs [0:14:52]
“All [broker transparency] does is disrupt and will cause increased costs in the entire supply chain.” — Doug Potvin [0:18:30]
“I think broker transparency is a perfect example of an over-reaching regulation that does nothing new to improve safety.” — Chris Burroughs [0:21:33]
Don’t miss this expert analysis on the current and future state of logistics market trends. Click above to view Tire Tracks episode 45.
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Click here to submit a comment on CFR 371.3.