Trust is essential in any business dealing. The trucking industry is not left out of the circle, as transparency should be the basis of negotiating the rates. However, not all brokers are transparent enough to provide adequate information about the jobs they offer to carriers. This is unfair to motor carriers who are marginalized. So it is out of the need for change, transparency, and fairness that the OOIDA suggests new legislation to Congress
The Issue of Transparency Among Brokers
There have been a lot of irregularities happening in the trucking industry. The notable one is the non-disclosure of the necessary information from brokers to independent drivers. A carrier may not even be aware of clients who need his haulage services, including not knowing what the broker charged from the clients.
Situations like these put carriers in unfavorable positions due to the unethical act of the brokers. From the financial perspective, brokers show a lack of transparency by underpricing rates to carriers without considering carriers’ requirements for operational continuity.
That was the case at the severe point of the pandemic when brokers took advantage of the moment to offer meager rates, which adversely affected the cash flow of independent drivers. This called for a reaction from the OOIDA to rectify difficulties faced by carriers.
OOIDA Response to the Situation
As a response to transparency issues among brokers, the Owner-Operator Independent Drivers Association (OOIDA) wrote to Congress. The letter’s content was to seek better transparency from the brokers such that it favors the carriers.
Carriers need to be aware of shipments and the rates so that everyone can be on the same level; thus, fairness will be promoted. The idea behind promoting fairness among stakeholders is to offer carriers the opportunity to choose jobs that offer good pay. Carriers need favorable conditions to realize significant earnings for every trip.
Transparency is needed in the trucking industry for fairness in transactions. All information should be available to everyone involved in a deal- the broker, carrier, and shipper. Only when there’s improved communication and honesty will trust and transparency exist in the trucking industry. Freight Checkers is one of the only tools carriers can depend on to provide this much-needed Transparency.
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