MAP 21 (The 2012 Highway Act) OUTLAWS CARRIERS FROM BROKERING

For years, many carriers were under the false impression that they could broker excess loads their own trucks couldn’t cover. That was illegal then, it is expressly illegal now. MAP-21 has cleared up the misunderstanding by explicitly outlawing the practice. In fact, carriers who continue the practice after the passing of MAP 21 may now be fined excessive amounts of money for each offense, and face the prospect of civil actions seeking millions of dollars. 

Effective October 2013, motor carriers who wish to broker excess loads, or any load, must (a) apply for and obtain a broker’s license; (b) maintain a $75,000 broker bond; and (c) inform the shipper of the carrier’s intent to broker the load rather than haul it on its own equipment, and obtain the shipper’s consent to do so; and (d) experts are also suggesting that many carrier insurers are unaware if a carrier is brokering. So since carrier risks and exposures differ greatly from those of a broker, shippers must also insist to see evidence that a carrier’s insurance covers its brokered loads risks. Carrier cargo does not cover freight that has been brokered by the carrier, unless the insurance certificate expressly states it does. For many carriers, that will require a business restructure, and new endorsements or policies.

We recommend you use a carrier as a carrier only. Leave the brokering to properly authorized, bonded, and insured brokers. Or, you may simply call Tucker.

Truckload Capacity Tightens; Drivers Flee to Owner - Operators

Capacity is reaching its boiling point— well maybe it’s more of a simmer. Nevertheless, large truckload fleets are awash in loads, and short on drivers. They’re shedding shippers for better volumes, better freight, better lanes and higher pay. Large carriers are increasingly investing in their dedicated fleets (turning over truck and driver to shipper for set fees and costs), since it’s more profitable and more predictable than spot market, or retail freight.

Since early spring, carriers have been seeing higher turnover, and driver loss. Some large carriers have hundreds of

trucks parked, wishing they had drivers to drive them. Where are the drivers going? Two places: they’re getting better jobs, where they are home more, or get more miles and more pay; or they’re going into business for themselves. According to our affiliate. QualifiedCarriers.com, 11,570 new trucking companies entered the marketplace since February 2011, for a 7.5% increase. 


So what’s the trick for shippers? Stick with your most trusted providers and treat them well. Remember who stuck by you in the tough times and forget the ones who did not. Shippers and brokers who chase the low rates are the first ones left holding the bag, chasing new “friends” when the going gets tough. Low price providers have no problem leaving shippers the minute they find better freight. Capacity is predicted to remain tight in 2012 and 2013.

Tucker Holds 5th Annual Strategic Council

Tucker Company Worldwide and QualifiedCarriers.com provided logistics professionals with two days of energetic, informative and data driven sessions. This year’s event brought together leading experts in transportation, regulation, industry economics and best practices and trends in complying with shipper and broker contract compliance and expectations.   A select group of participations had the opportunity to hear from former FMCSA Administrator Annette Sandberg, noted transportation economist Noël Perry, Managing Director Equity Research for Wells Fargo Securities Anthony Gallo, and compliance and auditing professional Allan Goldberg. The meeting dove deep into the issues directly impacting the logistics realm and provided participants with the opportunity to discuss and strategize ways to remain competitive in a capacity stifled, heavily regulated industry that continues to experience very slow recovery since the economic downturn.

In addition to industry issues Tucker Company Worldwide and QualifiedCarriers.com provided company updates and showcase their latest State of the DOT^TM report.  The sentiment regarding this year’s Strategic Council was overwhelmingly positive with requests for additional time at each session due to the captivating discussions that followed each presentations.

If you are interested in presenting or attending at next years Strategic Council please contact Rebecca Bierbach.

 We hope to see you Spring of 2014!