We support honest brokers and the legitimate services they provide. AFFTRA proposes a transparent 3 percent cap on compensation for the brokerage portion of the transaction.
Broker Compensation Reform, explained by David McCown. Runtime 2:56.
We support honest brokers and the legitimate services they provide. We oppose hidden spreads, excessive undisclosed compensation, and business practices that prevent carriers and shippers from knowing how transportation revenue is divided.
Right now, a carrier usually cannot see what the broker is keeping. When margins are invisible, there is no accountability, and honest brokers get lumped in with bad actors.
AFFTRA proposes that compensation for arranging a transportation transaction be capped at 3 percent of the total shipper-paid transportation charge. The amount must be disclosed before the carrier accepts the load.
Any separate non-brokerage service must be itemized, actually performed, and separately contracted. Additional service charges may not be used to disguise brokerage compensation or evade the 3 percent cap.
AFFTRA legislative proposal. This is not current federal law.
Transparency rewards the brokers who do it right.
Yes. AFFTRA proposes a 3 percent cap on compensation for the brokerage portion of the transaction. The proposal does not eliminate brokers. It creates a transparent and standardized limit on compensation for arranging the load.
Three percent is AFFTRA's proposed policy standard for the brokerage function. It should be presented as a legislative proposal, not as current federal law or as a universally established historical rate.
No. Section 371.9 addresses narrow ownership and compensation conflicts. The proposed 3 percent cap would be a new AFFTRA standard requiring legislative or regulatory action.
A refusal to permit review of the required transaction record after a proper request may be documented and reported to FMCSA. Refusal to provide information before booking is one of the gaps AFFTRA seeks to close.
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