10 signatures reached
To: Pete Buttigieg
Eliminate brokerage in trucking industry
To Whom It May Concern:
Petition to Eliminate Brokers from the Trucking Industry
I am writing to bring attention to the growing and unsustainable burden that brokers impose on the trucking industry and to call for policy changes that eliminate the need for brokers who only serve as middlemen, reaping excessive profits without adding value. These intermediaries place a severe strain on carriers, particularly small businesses, and significantly diminish the earnings of those who actually perform the job.
Starting a carrier company is challenging and requires a large upfront investment in trucks, compliance with rigorous safety regulations, and operational costs. After these initial hurdles, carriers often face the additional burden of surviving a one-year waiting period before gaining access to loads through brokers. Brokers, however, enter the market with minimal investment—often just a phone line—and often introduce themselves to shippers as carriers, despite owning no trucks. Their practices include taking 30-50% of the total payment for a load, sometimes more than the carrier who is physically transporting the goods.
A key issue is the lack of transparency and regulation surrounding broker profit margins. Carriers often have no visibility into the payment a broker receives from a shipper. When carriers attempt to obtain this information, they may be blacklisted or placed on “do-not-use” lists by brokers, which prevents them from receiving future loads and threatens their business. This environment is not only exploitative but stifles competition and undermines the hard work of CDL holders who have invested substantial resources to keep their businesses running.
Moreover, brokers often operate call centers abroad, in countries with lower labor costs, while recent platform changes prevent carriers from hiring dispatchers outside the United States. This double standard is inherently unfair, penalizing American carriers while brokers continue to cut costs by outsourcing. A broker with no actual trucks can falsely claim a vast fleet, secure large loads, and undercut smaller carriers. When a carrier with five trucks calls a shipper, they are often rejected for being “too small,” but a broker is able to win the business through misleading claims, further driving carriers out of business.
In a market already suffering from low rates, brokers are a primary driver of bankruptcies among carriers. Many hardworking carriers are unable to continue operations due to the unsustainable fees taken by brokers, fees which lack any regulatory cap or transparency. These brokers are not only unnecessary but actively harmful, preventing fair earnings for those who bear the risks and costs of the job.
We urge you to consider policy reform that limits or eliminates the role of brokers in the trucking industry. Doing so would protect the livelihoods of carriers, restore fairness to the market, and prevent the undue exploitation of those who keep America moving.
Thank you for your consideration.
Sincerely,
Volodymyr Mikhidenko
Big Motor Freight LLC
Big Motor Freight LLC
Why is this important?
Eliminating brokers from the trucking industry is important to support the sustainability and fairness of the market for those who actually perform the job. Carriers, especially small and independent operators, are the backbone of the trucking industry, yet they face substantial challenges. Starting a carrier company requires a huge financial investment, adherence to strict safety regulations, and substantial ongoing operational costs. Brokers, on the other hand, enter the market with minimal investment, yet can take 30-50% of the total payment for a load, sometimes making more than the carrier who handles the transport. This puts carriers at a significant disadvantage, affecting their ability to sustain their businesses and, in many cases, driving them to bankruptcy.
Without regulation on broker profit margins or transparency into broker payouts from shippers, carriers have no clear understanding of what the actual market rates are. When they try to get this information, they risk being blacklisted by brokers. This lack of transparency and control by brokers creates a system that is unfairly biased against the carrier.
Moreover, brokers often have cost-cutting advantages by outsourcing work to call centers abroad, while recent regulations prevent U.S. carriers from hiring dispatchers outside the country. This disparity further erodes the competitiveness of actual carriers, who are already stretched thin due to high operational costs and market uncertainties.
The removal of brokers would help restore market balance, allowing carriers to negotiate directly with shippers and ensure they receive fair compensation for their work. By reducing the need for middlemen, the industry could support the financial health of carriers, reduce unnecessary fees, and provide more stability. In a low-rate market, every dollar matters, and eliminating brokers would allow carriers to retain a fairer share of the earnings, ultimately fostering a stronger and more equitable trucking industry.