Brokerage Reform

In the heart of America’s economic machine, truck drivers are the unsung heroes, delivering goods across vast distances to keep the nation running. However, this lifeline of the economy often faces exploitation, particularly from predatory brokerage operations. American Truckers United (ATU) stands at the forefront of a movement demanding reform in the freight brokerage sector to ensure fair treatment for truck drivers.

Freight brokers act as intermediaries, connecting shippers who need to transport goods with carriers who have the capacity to move them. However, what should be a simple logistical service has evolved into a more complex issue, particularly affecting American truck drivers. Despite the advent of technologies like AI-driven insights and predictive analytics, which should theoretically streamline the connection between shippers and carriers, the role and influence of freight brokers have, paradoxically, grown.

Given the availability of modern sales technologies that facilitate direct partnerships between carriers and shippers, one might expect the relevance of brokers to decline. Instead, their business is expanding. This phenomenon prompts questions about the origins of this increased capacity, especially in what is often described as a “driver shortage” era. If there truly was a shortage, wouldn’t shippers leverage the latest AI technologies to directly secure truck services? And wouldn’t carriers, in turn, charge higher rates, thereby successfully negotiating strong direct contracts with shippers? Is it possible to have a simultaneous freight recession and driver shortage? Or is it more likely that the driver shortage mantra is a cover for replacement migration throughout the trucking industry?

The explanation partially lies in the labor dynamics within the industry. Discussions with brokers frequently reveal a pivot away from employing American drivers, which could imply either a decrease in American participation in their shipments or a strategic operational choice by brokers. However, sectors such as tanker operations, livestock transport, oversized loads, and various bulk transports, which remain largely broker-free, are still dominated by American workers. These areas tend to experience less market fluctuation and labor issues, because they have much less broker interference.

This scenario indicates that while technology has the potential to optimize logistics, the brokerage system might be perpetuating, or even expanding, its necessity through practices like wage dumping. This practice impacts the traditional dynamics between carriers and shippers and adversely affects job prospects and wages for American drivers. The business model of brokerages seems to thrive by exploiting foreign labor, thereby exerting unsustainable downward pressure on wages for American truck drivers and on rates for American carriers. If the market were to suddenly shift back to one that does not allow for the exploitation of immigrant labor due to stricter border controls, we would see an immediate return to the proper living standards for our American Truck Drivers. Lets do this together! Lets unite to take our Standard of Living Back! American Roads – American Safety Standards – American Wages – American Truckers United

• Wage Dumping: Brokers are the primary revenue stream for illegal trucking operators using foreign labor to compete with American Truck Drivers. While some shippers are sourcing these operators direct, most are using brokers as intermediaries to hide behind willful blindness
• Unfair Compensation: Drivers are frequently underpaid or not compensated for delays, known as detention time, which can eat into their earnings significantly.
• Lack of Transparency: Brokerage fees and rate structures are often opaque, leaving drivers in the dark about how loads are priced and how much of that price reaches their pockets
• Changes to Agreement: Some brokers engage in practices that prioritize their profits at the expense of drivers, such as load rejections after acceptance, last-minute cancellations, posting the wrong origin and destination to conceal the actual miles of the load or non-payment for services rendered
• Invoice Deductions: Brokers are profiting in unethical fees such as no tracking, no check call, no timely pod, late fees. None of which are charged by the shipping community to the brokers
• Illegal Dispatching Practices: Brokers are tendering orders to carriers with transit times that cannot be met under federal hours of service regulations

The call for reform isn’t just about correcting injustices but about ensuring the sustainability of the trucking industry:

• Legislative Measures: ATU supports initiatives like
  • Broker and Shipper Transparency: Require brokers and shippers to file an annual public report that includes how many shipments they move using any capacity other than US Licensed American Truck Drivers with proof of citizenship in the United States
  • Broker and Shipper Accountability: Establish harsh penalties for wage dumping that includes taxing Shippers and Brokers 30% of the gross invoice amount. Applicable to the party responsible for securing the capacity. All funds collected should be allocated to a fund dedicated to the enforcement of these policies.
  • Work Visa Use Oversight: Implement stricter oversight on the issuance and use of work visas in the trucking industry to prevent their misuse. This includes regular audits of companies employing foreign drivers and the publication of all visa counts in the industry and the companies utilizing them
  • Tourist Visa Abuse: Introduce severe penalties for individuals and their companies performing work in the trucking industry on a tourist visa.

American Truckers United isn’t just advocating; it’s mobilizing:

• Lobbying and Advocacy: Engaging with legislators to push for laws that protect driver rights and ensure broker accountability.
• Legal Challenges: We will take the fight to them in the court room
• Education: Informing drivers about their rights, the current state of brokerage practices, and how to navigate or challenge unfair practices.
• Community Building: Creating a network of support where experiences can be shared, and collective action can be organized against predatory brokers.

The trucking industry’s health is vital for America’s economic well-being. Reforming freight brokerage to protect truck drivers from predatory practices isn’t just about fairness; it’s about ensuring that the drivers who keep the country moving are treated with the respect and compensation they deserve. American Truckers United calls upon all stakeholders—from policymakers to the drivers themselves—to join this movement. Together, we can drive change, ensuring a future where the roads are not just highways for goods but pathways to justice for truckers.