Latest news with #FederalMotorCarrierSafetyAdministration
Yahoo
08-06-2025
- Business
- Yahoo
Economic uncertainty delays truckload market breakout
Chart of the Week: Outbound Tender Reject Index, National Truckload Index (linehaul only) – USA SONAR: The truckload market remains poised for a breakout, but the timeline appears to be extending. Analyzing the trend line of tender rejections (OTRI) and spot rates excluding fuel (NTIL) over the past two years reveals a clear upward trajectory with increasing volatility. However, this trend flattened in the first five months of the year, as economic uncertainty continues to dampen demand. The trucking sector is enduring one of its longest and most challenging economic stretches since deregulation. Truckload demand is currently down approximately 30% from its COVID-era peaks. While those peak levels were never sustainable, they lasted long enough to inflate capacity far beyond what the market required. From June 2020 to October 2022, the number of active truckload operating authorities grew by roughly 48%. Since then, they have declined by only about 12%. Federal Motor Carrier Safety Administration data is slow to reflect these changes, as it can take up to two years to clear inactive authorities unless operators self-report their exit. Carrier Details helps refine this timeline to around a year, but it still lags. Importantly, one authority can represent a single truck or a fleet of a thousand, so this metric isn't evenly distributed. Tender rejections serve as a reliable proxy for market balance. Carriers are unlikely to reject freight in soft markets unless they have alternatives, so rising rejection rates indicate tightening capacity and strained networks. Capacity has been in correction mode for years and seemed close to reaching equilibrium late last year. Over the holidays, the OTRI exceeded 10% for the first time since 2021. This occurred even as shippers increasingly turned to intermodal for longer hauls, taking advantage of early inventory pull-forwards that gave them more flexibility in shipping. The ongoing trade war has further fueled the inventory pull-forward phenomenon. After briefly cooling in late April and early May, tariff activity resumed, sending mixed signals and triggering repeated shifts in shipping behavior. Import bookings data shows a surge in container volumes bound for the U.S. last summer, followed by erratic swings. Container imports can be a useful demand proxy, but they often give false signals during periods of uncertainty — something that has plagued shippers since COVID. Import demand remains relatively high, but much of the freight is precautionary. With trade policy and consumer spending still in question, a significant portion of freight is sitting idle in warehouses rather than moving on trucks. The economy seems to be stalling, if not slowing outright, as business investment weakens. This protracted trade policy uncertainty is unprecedented, leaving businesses without a playbook. Hiring has slowed, and layoffs are rising. Initial jobless claims have increased since January after declining through the latter half of 2024. While aggregate figures remain historically healthy, the trend is concerning. If the labor market continues to deteriorate, consumer spending could contract further. Combined with persistent inflation and reduced investment, these factors suggest a stagnating economy. The fact that rejection rates have stayed above 6% since International Roadcheck in mid-May — despite underwhelming demand — should be seen as a positive signal for carriers and 3PLs. Demand conditions are actually weaker than in mid-2023, when excess inventory caused order slowdowns and pushed OTRI below 3%. This suggests a meaningful amount of capacity has exited the market, with more likely to follow as demand remains soft. While the outlook isn't bright for all stakeholders, it does indicate that the imbalance between truck supply and freight demand has narrowed. Shippers should take note: The market is primed for a sharp reaction if macroeconomic conditions improve. Even if they don't, transportation is likely to become more challenging going forward, even if not dramatically so. The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time. The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Economic uncertainty delays truckload market breakout appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
FMCSA Modernizing Complaint System to Fight Freight Fraud, Coercion, Safety Gaps
For years, drivers, brokers and carriers have voiced the same complaint: Filing reports with the Federal Motor Carrier Safety Administration often feels like yelling into the void. The National Consumer Complaint Database (NCCDB), designed initially to collect reports on bad actors in the supply chain, has been criticized for being clunky, outdated and ineffective. Now, in a low-profile move buried in the Federal Register, the FMCSA is proposing a sweeping overhaul of the NCCDB. The goal? To turn it into a fully modernized system for flagging broker fraud, motor carrier violations, shipper coercion and questionable conduct from substance abuse professionals, medical review officers and others operating under DOT compliance rules. It's not a new regulation, but it might be one of the agency's most important modernization efforts in years. The proposed changes stem from a 2023 Government Accountability Office (GAO) report that slammed the FMCSA's existing complaint system for lacking transparency, accountability and enforcement power. The new framework aims to change that by streamlining how complaints are filed, tracked and resolved and it aims to bring clarity to a marketplace defined by ghost carriers and untraceable the proposal, the NCCDB would get a complete overhaul, making it easier to file complaints, allowing users to track the status of their submissions, and improving data collection methods so that trends, patterns and serial offenders don't fall through the cracks. There's even language allowing carriers and brokers to challenge inaccurate or duplicate data, a nod toward due process in a system that's long lacked it. (This sounds ridiculously familiar to fleets' issues with the lack of due process in the antiquated Data Q system.) At the root, this change is about enforcement, not usability. The FMCSA has stated that the goal is to make complaint data more actionable, linking it directly to safety violations, broker noncompliance and the kinds of coercive behavior that regulators often miss in the field. While many complaints have historically vanished into limbo, the revamped system would increase the chance that they trigger investigations or enforcement when the trucking industry, this could be a quiet turning point. Carriers dealing with coercive shippers or unlicensed brokers may finally have a meaningful place to submit evidence. Drivers who've faced harassment, withheld pay or unsafe working conditions could gain a traceable channel to elevate their concerns. Brokers who play by the rules may benefit from a system that starts calling out the ones who don't. Freight fraud and cargo theft have gotten so bad that private businesses like Freight Validate and the Freight Fraud Task Force have been developed to fight fraud on the front end. In many ways, this feels like a 'clearinghouse' moment for complaints, especially fraud. While it doesn't have the regulatory teeth of the Drug & Alcohol Clearinghouse, the concept is similar: aggregating data, flagging repeat offenders and giving industry players a tool to verify legitimacy before they engage. Still, execution is everything. A digital form means little if it leads to no meaningful action. The FMCSA has opened the door to a smarter system, but it will need real infrastructure and enforcement commitment behind it to succeed. The agency is gathering public comment and refining the proposal based on feedback, with implementation likely to begin in 2026. Given the freight market's growing vulnerability to fraud, ghost operations and regulatory loopholes, many hope this won't just be a paper fix. The post FMCSA Modernizing Complaint System to Fight Freight Fraud, Coercion, Safety Gaps appeared first on FreightWaves.
Yahoo
04-06-2025
- Business
- Yahoo
Trucking company owner indicted in $2M credit card scam
A San Diego-area owner-operator was arraigned on Tuesday in an 18-count indictment charging him with bank fraud, money laundering and aggravated identity theft. Hasan Korkmaz, who owns San Diego Logistics Group Inc. based in Santee, California, carried out a credit card 'bust-out' scam in which seemingly legitimate credit card accounts are established and then are 'busted out' by maxing out the credit line with no intention of paying the balance, according to the U.S. attorney's office representing the Southern District of California. Prosecutors allege that Korkmaz obtained names, dates of birth, Social Security numbers and other personal information linked to real people and used the information to apply for numerous credit card accounts. After opening the fraudulent accounts, he allegedly used the cards to charge various businesses, including his own trucking company, with some charges as high as $18,500 for a single transaction.'To perpetuate the scheme, Korkmaz also made fraudulent payments, with checks drawn on accounts with insufficient funds or drawn on non-existent accounts, to the credit card accounts, thereby temporarily restoring the available credit limits,' according to the attorney's office. 'Korkmaz would then incur additional charges on the credit card accounts at or near the maximum credit limits for the accounts.' Korkmaz is also alleged to have laundered the bank fraud proceeds, including by transferring them to a Turkish bank account he controlled, causing two banks to lose $2.1 million. According to Federal Motor Carrier Safety Administration registration data, San Diego Logistics Group specializes in hauling refrigerated meat and fresh produce with three tractors and five drivers. It is listed as having an 'inactive' USDOT convicted, Korkmaz faces maximum sentences of 30 years in prison and a $1 million fine for bank fraud, 20 years and $500,000 for money laundering, and a mandatory minimum sentence of two years in prison for aggravated identity theft. South Florida trucking company owner gets long prison term for Ponzi scheme California freight forwarder charged with smuggling billions in goods California trucking company owner pleads guilty to PPP fraud Click for more FreightWaves articles by John Gallagher. The post Trucking company owner indicted in $2M credit card scam appeared first on FreightWaves.
Yahoo
03-06-2025
- Business
- Yahoo
Trump administration wants to cut FMCSA workforce by 7%
WASHINGTON — The Federal Motor Carrier Safety Administration's detailed budget request for fiscal year 2026 reveals plans to reduce the agency's workforce by approximately 7% while the agency requests a slight increase in funding. Published this week by the U.S. Department of Transportation to help appropriators in Congress establish next year's funding bills, the request cuts FMCSA's overall workforce by 89 'full-time equivalent' positions – a measure that accounts for part-time positions – while seeking a funding increase of roughly 2%, to $927 million, over last year's enacted budget of $909 million. Adding another $135 million in advance appropriations from the Infrastructure Investment and Jobs Act of 2021, FMCSA's budget estimate for FY26 increases to over $1 billion. 'This budget provides the necessary resources for FMCSA's dedicated workforce to uphold our safety mandate effectively and efficiently, focusing on core responsibilities, modernizing critical systems, and applying common sense principles to regulatory oversight,' according to the budget's overview. Most of the workforce cuts are slated to occur at FMCSA's headquarters in Washington. Remaining unchanged, according to the proposal, are the 852 positions within FMCSA's Office of Safety, which accounts for over 75% of the agency's 1,118 full-time-equivalent workforce. The Office of Safety manages all FMCSA field staff and is responsible for carrying out safety programs aimed at preventing crashes, fatalities and injuries involving commercial truck drivers. The budget request also gives a breakdown of FMCSA plans and priorities for the upcoming year, with many of those important to truck drivers being overseen by the agency's Office of Research and Registration. Among them, as outlined by FMCSA: Fraud prevention: Refining the identity proofing and business verification services, ensuring they are well integrated with the new FMCSA Registration System. FMCSA Customer Contact Center: Continue expansion under the direction of the FMCSA Customer Service Division to provide one-stop and one-phone-number customer support to the trucking industry. The division will continue to provide an increasing level of customer service and support to the more than 30,000 weekly customer engagements. Broker and Freight Forwarder Financial Responsibility Rule: Continue to develop the policies and procedures to oversee the implementation of the Broker and Freight Forwarder Financial Responsibility Rule – to be overseen by the Broker Transparency Rule – that takes effect in calendar year 2025 and 2026. Modernized registration system: The Registration Division will oversee the deployment and sustainment of the new modernized federal registration system, called Motus, in calendar year 2025 and beyond. The division will also be developing the policies and procedures for the new registration fraud team. Vetting expansion: The Vetting Division will experience a significant increase in workload upon the deployment of the new registration system. The new system will screen all applications for reincarnation behavior (attempting to avoid sanctions by obtaining a new DOT number under a different company name), flagging more applications for vetting than today. The division will continue the expansion of the vetting operations to ensure every application type is properly vetted and applicants are fit, willing and able to comply with FMCSA policies and regulations. Crash data analytics: Expand the collection of crash data elements reported by states and merge this collection with other data sources to identify the factors involved in large truck crashes. The division will analyze crash data by carrier type, size, commodity and age of new-entrant drivers to develop varying intervention strategies. Feds taking another look at truck-broker contract rules DOT's deregulation barrage raises compliance concerns for trucking VIDEO: Drivers voice frustrations with FMCSA enforcement CPAC wants Trump to overhaul FMCSA's waiver regime Click for more FreightWaves articles by John Gallagher. The post Trump administration wants to cut FMCSA workforce by 7% appeared first on FreightWaves.
Yahoo
29-05-2025
- Business
- Yahoo
DOT's deregulation barrage raises compliance concerns for trucking
WASHINGTON — The axing of dozens of regulations this week by the U.S. Department of Transportation has raised concerns from trucking industry experts concerned about compliance and safety. While the majority of the 52 deregulatory actions affecting the Federal Motor Carrier Safety Administration, the National Highway Traffic Safety Administration and the Federal Highway Administration provide 60-day comment periods to allow for public protest, most if not all will likely be taken off the books. 'Big government has been a big failure,' said Transportation Secretary Sean Duffy, commenting on the changes in a press statement on Thursday. 'Under President Trump's leadership, my department is slashing duplicative and outdated regulations that are unnecessarily burdensome, waste taxpayer dollars, and fail to ensure safety. These are common sense changes that will help us build a more efficient government that better reflects the needs of the American people.' Of the 20 actions taken at FMCSA, two are final rules and 18 are proposed rules that would either amend or rescind current regulations. P. Sean Garney, a trucking regulatory expert and co-director at Scopelitis Transportation Consulting, singled out several of FMCSA's deregulatory actions for potential compliance issues. For example, while Garney considers reasonable a proposal to eliminate a requirement that truck drivers keep a hard copy of the truck's electronic logging device user manual on board, 'what's a little tricky and what carriers will need to take note of if these are finalized as written is that it only applies to the user manual,' he told FreightWaves in an email. 'Drivers are still required to carry (or store electronically) the instructions for how to transfer data at roadside and the instruction sheet for how to deal with a malfunction, not to mention blank logs. It'll be important for motor carriers to make sure drivers have access to it either way. It's like your car user manual, you don't need it until you need it.' FMCSA also proposes revising a requirement that motor carriers and intermodal equipment providers sign and return a completed roadside inspection form to their issuing state agency. Because not all states require that they be returned, FMCSA wants the form-return requirement to apply only to carriers obligated to do so by their state – and that could be a problem, Garney cautioned. 'While many states do not require these inspection reports to be signed and returned … others still require them,' he said. 'If removing the requirement is the best course of action, I wish FMCSA would have pulled the trigger for all states, rather than leave us guessing on who requires it be returned and who doesn't. Figuring this out and adhering to it is a burden.' FMCSA's proposal to rescind a manufacture certification label requirement for rear impact guards on truck trailers has a potential enforcement issue lurking, according to Garney. Motor carriers have balked at the requirement because the labels can become worn and illegible. 'What's interesting about this one is that this notice is just half the story,' he said. 'Removing this from [FMCSA's regulations] will help out carriers at roadside as inspectors won't be able to write the violation … but the requirement still lives in the Federal Motor Vehicle Safety Standards, which are controlled by NHTSA.' In the event of a failure of a rear guard that has a worn label, 'who will be left holding the bag? Who's in charge here?' The list of deregulatory actions at FMCSA has raised red flags at the Truck Safety Coalition, which advocates for truck crash victims and their families. 'Certainly time has rendered some regulations obsolete,' acknowledged TSC Executive Director Zach Cahalan in an email to FreightWaves. However, 'TSC remains concerned FMCSA is rushing to fulfill campaign pledges and failing to uphold its historically high burden to prove any deregulatory changes will not adversely impact safety.' As an example, Cahalan pointed to FMCSA's proposal to rescind a regulation requiring retroreflective sheeting on semitrailers and trailers (which improves their visibility at night) manufactured before 1993. 'FMCSA declares 'it believes' trailers manufactured prior to 1993 are not in use, but fails to quantify this assertion in any way, shape, or form,' he said. Regarding eliminating the ELD manual requirement, 'it's probably a good idea to keep ELD manuals in rigs as there is no reason to believe all drivers receive sufficient training in their use and operation, something our victims can tragically attest to.' He emphasized that driver fatigue – which the ELD mandate is supposed to help address – 'remains a chronic problem in the industry and is frequently cited by the NTSB as a contributor in most truck crashes.' DOT takes heat for drug testing certification delays Lawmakers look at expanding FMCSA's power to rein in cargo theft Trump's NHTSA nominee raises concerns among truck safety advocates Click for more FreightWaves articles by John Gallagher. The post DOT's deregulation barrage raises compliance concerns for trucking appeared first on FreightWaves.
