As promised I’ve actually read the bill. Todd Spencer (Exec VP OOIDA) was good enough to send me a copy after we talked on the phone. Something about that last post he wanted to talk about.

It probably sounded like I was against it, but I said that unless there’s complete visibility it’s not going to work. Guess what’s in this bill? After this bill everything is supposed to be right there in the open.

Here’s the intro to the bill s.2910 IS (pdf) -

To require brokers to disclose and pay independent truckers for any fuel surcharges received from shippers that relate to fuel costs paid for by the truckers.

I would change “independent truckers” to say all carriers, but later on it does broaden the scope -

SEC. 2. DISCLOSURE AND PASS THROUGH OF MOTOR CARRIER FUEL COSTS.

(a) In General- Section 14102 of title 49, United States Code, is amended by adding at the end the following:

`(c) Disclosure and Pass Through to Cost Bearer- A motor carrier, broker, or freight forwarder, providing or arranging truckload transportation or service using fuel for which it does not bear the cost, shall provide to the person that bears the cost of such fuel–

`(1) a payment in an amount equal to the charges, invoiced or otherwise presented to the person directly responsible to the motor carrier, broker, or freight forwarder, which relate to the cost of the fuel; and

`(2) at the time payment is made under paragraph (1), a written list that specifically identifies any freight charge, brokerage fee or commission, fuel surcharge or adjustment, and any other charges invoiced or otherwise presented to the person described in paragraph (1).’.

The best part c (2) is the complete visibility. But why wait till “at the time of payment” ? What’s wrong with knowing all of that when you take the load and not after it’s done? At least that’s how it reads to me. Also, “a written list” could be any list the broker wants to make up. (Or am I too cynical?) The last paragraph of the bill mentions that you’re not supposed to lie about any of this.

Everything is supposed to be broken down line by line including the fuel surcharge and the broker’s commission. And you’ll have the right to ask for it and see it. If this is really the case, enforcement may not be an issue. If you are working with a broker that refuses to provide that, it’s up to you to go somewhere else, which in this market is easier said than done.

No one said that a broker has to make 10%. They might make more on some loads and less on others, but now it will be out in the open. If you’ve got a broker trying to make 30% or 40% you’ll know not to work with him again but if you do, you’ll know what your working with.

Broker in this case can mean carrier too. If you’re getting paid by percentage this will show you that the gross is really the gross linehaul and not just some number your carrier says is the gross. And if they don’t want to show you, it’s your choice again.

Bottom line

This has what we need. My Senator is Harry Reid and I’m a registered Democrat (don’t ask) and I’m going to write him to support this with a minor change. I don’t like “just a written list”. I’m not sure what would satisfy me that a broker is telling the truth except a certified, signed, notarized copy of the freight bill, sent to me directly from the shipper, but I’m sure there’s something better then “just a written list” and they’re not supposed to lie about it. And why wait till “at the time of payment” that could be 30 days later, how about at the time the agreement is made (when the confirmations are signed). Preferably before, but that might be asking too much.

The ATA and TIA (brokers) have bigger PACS than we do, but like Todd said, we do have the numbers. Go to OOIDA’s web site for help finding your Senator. Right now, it’s only in the Senate so I don’t think writing your Representative would do much right now, but it will go to the House eventually.

Support? Not Support? Do you think it will pass? Be enforceable? Be enforced? Do you want to see something else from a bill like this? Am I too cynical? Everything is going to be great when shippers / carriers see how much everyone is charging each other? Use the comments.