FMCSA ENACTS NEWS REGULATIONS UNDER MAP-21 GOVERNING MOTOR CARRIERS AND FREIGHT BROKERS
The implications to the trucking industry, and the safety of people sharing the roads with trucks, are continuing to unfold after the passage of the Moving Ahead for Progress in the 21st Century Act (MAP-21). The carrier and broker lobbyists argued that the changes the FMCSA were putting through in MAP-21 were arbitrary to the trucking industry and it was not fair they should be singled out for more regulation. However, safety organizations and the government sided with FMCSA in finding that additional mandates were supportable by those companies who were “transparent” in their operations while also providing an additional level of protection to the driving public.
July 1, 2013 saw the implementation of new hours of service rules with the most notable changes being that long-haul truck drivers must now take a 30 minute break during the first 8 hours of their shift, and truckers cannot drive more than 70 hours in a week. Another rule creates the Unified Registration System (URS), which is a central database of information on trucking companies involved with transporting goods across state lines. The URS system will be used by the FMCSA to identify companies who exhibit a pattern of non-compliance with federal safety rules and the FMCSA will, in turn, use this information to suspend the licenses of companies who show a history of disregarding safety laws.
Sections 32915 and 32918 specifically address freight brokers and motor carrier companies who occasionally forward freight. Starting October 1, 2013 freight brokers and motor carriers who broker loads will be required to register as a freight forwarder or broker. Additionally, the minimum financial security requirement for freight brokers and motor carriers who broker loads will be increased to $75,000. Proponents for MAP-21 have long argued that this increase in the minimum financial security requirement will discourage “fly by night” brokers who put up a minimal amount of money and then, once too many complaints or investigations are leveled against them, close the business and move down the road to begin anew with no record of their previous bad business practices.
The FMCSA is going to phase in the MAP-21 requirements over a 60-day period beginning on October 1st. They are providing freight brokerage and motor carrier companies with detailed information and assistance in implementing the new standards. The FMCSA acknowledges it will take time for companies who have not previously been required to register with and be approved by the FMCSA to complete the necessary paperwork and filings; therefore, the 60-day grace period will enable these companies to come into compliance with the new rules. Additionally, the FMCSA will take complaints during the 60-day phase-in period against companies alleged to be operating unregistered brokerage activities.
Motor carrier companies are cautioned by the FMCSA to not accept loads from unregistered brokers or freight forwarders as these companies might not have the new minimum financial security requirement in place to protect companies doing business with them. They also add that motor carriers who engage in freight brokering without registering with and being approved by the FMSCA may be subject to private civil actions (49 U.S.C. Section 14707).