Independent owner-operators have long relied on brokers — the so-called middlemen — who negotiate with companies to ship their goods. They then pass the shipments along to the motor carrier. With the increased costs of the gas crisis, many of these middlemen have been adding a fuel surcharge to the price of their contracts. Unfortunately, some unscrupulous middlemen only pass on a small percentage to the motor carrier, if anything at all. With the price of diesel through the roof, this is making it increasingly difficult for small owner-operators to stay in business.
Currently, there are no restrictions on how much a middleman must give one of his contracted motor carriers. As such, there has been little any state or Federal government can do in order to stop such behavior. In the past few months, the price of diesel has had a negative effect on the independent owner-operator. Land Line reports that more than 1,000 motor carrier businesses failed in the first quarter of this year alone. With the price at the pump unlikely to go down anytime soon, it seems that number will continue to rise through the end of the year.
The bill has received wide bi-partisan support; it was written by Sen. Olympia Snowe (R-ME), and co-sponsored by Sen. Sherrod Brown (D-OH). When she introduced the bill, Sen. Snowe commented on the plight of the independent owner-operator: “For too long, our small-business motor freight carriers, who struggle every day to make ends meet, have had their concerns ignored and neglected,” Snowe said.
The Owner-Operator Independent Driver’s Association (OOIDA) enthusiastically endorsed the bill. The act "will go a long way toward helping truckers and their shipping customers weather the brutal cost of fuel," said Todd Spencer, OOIDA executive vice president. OOIDA went so far as to issue a call to action to its members, asking them to contact their Senators and voice their support for the bill.
Spencer commented further on the problem when he testified to the House Transportation and Infrastructure Committee on May 6. "Every day at our headquarters in Missouri we hear horror stories from small-business truckers about unscrupulous brokers with FMCSA authority who collect money from shippers, but never pay the truckers who actually transport the loads,” he told the committee.
The bill is gaining support in Congress, but the debate continues in both the House and the Senate. If you would like to read the bill,
click here. If you would like to contact your Senator about this bill call the Capitol Switchboard at (202) 224-3121 and provide your ZIP code to the operator to be connected to the correct offices.