According to today's USDA Grain Transportation Report, on June 16, the Federal Motor Carrier Safety Administration (FMCSA) issued guidance clarifying the definitions of “broker” and “bona fide agents," and particularly focused on “efficiency and defining financial responsibilities.”

According to the FMCSA Administrator, the final guidance has several intended purposes. It helps to give needed information to freight brokers and entities acting as bona fide agents or dispatch services in the trucking industry—helping them make “appropriate decisions for their operations.”

The clarifications also help regulated carriers decide whether they should work with entities that do not have broker authority and associated financial responsibility.

Finally, the guidance helps stakeholders take the appropriate action against dispatchers working outside of the scope of FMCSA’s guidance and ensure better business practices.

The clarified guidance was issued in response to a mandate by the Infrastructure Investment and Jobs Act of 2021 and the Fiscal Year 2023 Appropriations Act.