The U.S. Federal Motor Carrier Safety Administration (FMCSA) has issued interim guidance clarifying the definitions of "broker" and "bona fide agent" in the trucking industry. The guidance aims to inform decision-making and ensure compliance within the trucking industry.
“This final guidance arms freight brokers and entities operating as bona fide agents or dispatch services in the trucking industry with information needed to help make appropriate decisions for their operations,” said FMCSA Administrator Robin Hutcheson, according to a June 16 news release. “It also helps clarify for regulated carriers whether they should work with entities that do not have broker authority and associated financial responsibility.”
According to the release, the FMCSA has provided regulatory guidance regarding the definitions of "broker" and "bona fide agents." The issuance of this guidance is a direct response to the mandates outlined in the Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) and the Fiscal Year 2023 Appropriations Act.
Documents retrieved from the Federal Register reveal that the interim guidance provided by the U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) focused on six key areas. First, it addressed the definition of a broker, outlining the criteria that distinguish brokers within the industry. Second, the guidance clarified the definition of a bona fide agent and the role they play in the transportation sector. Additionally, the interim guidance shed light on the role of dispatch services in the industry and how to differentiate between when a dispatch service is functioning as a broker or as a bona fide agent. It provided insights into the specific services that dispatchers can offer without requiring broker authority, as well as services for which dispatchers must obtain broker authority.
The release highlights that the guidance has undergone a thorough review process, incorporating feedback from various stakeholders. More than 130 comments were carefully considered during multiple comment periods. To gain further insights, the FMCSA conducted a broker listening session at a prominent trucking show earlier this year, where additional comments were sought.
According to the release, the regulatory guidance serves to benefit brokers, dispatch services, trade associations, and other stakeholders in the trucking industry.
