Montgomery v. Caribe Transport Decided.

Talking about that right now on Fox Business News.

 

Wouldn't it also put liability of an accident on Amazon involving their sub contractors? Basically Amazon is a broker, Amazon brokers their own freight.

 

Big brokers will ultimately come out on top from this decision and small brokers will lose.

 

Load rate "superspike" coming?.........:

SCOTUS to trigger truckload rate run to $5.00 per mile?

-- L

 

Insurance rates superspike.

 

----- "There are roughly 1.2 million trucks operating today with zero safety rating from FMCSA. Brokers now have to think hard about whether to put freight on those trucks at all.

This creates an immediate problem: if a carrier doesn’t have a safety rating, how does a broker demonstrate the due diligence the Court is now requiring?"

 

I think small brokers actually benefit from this, while they will have to get liability coverage of some type, they also work with fewer shippers and fewer mega carriers, and more small trucking companies. They aren't out there trying to cover 4,000 loads a day for #### rates who act like they fought a war getting you an extra $100 on a rate or something, they are looking for competent, safe companies they can rely on, because they are only working with a few companies and don't want to screw up their relationships. At least that has been my experience with smaller brokers vs the larger brokers.

 

I think we'll see more brokers working as agents, similar to the arrangements they have with Landstar. That way they can spread out the risk and share the safety rating with a pool of other agents.

Then again, if the new MOTUS system doesn't prove effective in weeding out chameleon carriers, I think we can expect to see a rise in the number of chameleon brokers.

 

I have no problem with competition, I do have a problem when bids aren’t like for like, someone maintaining a truck, carrying correct liability/workmans comp etc, plus a decent wage/benefits for a good driver isn’t competing with Vladimir and his $0.30 a mile 1099 guy with missing brake cans and the air fryer popping off every 17.2 seconds….