Raise your hand if your trucking liability insurance premiums have been plummeting to record lows over the last few years? Looks around for any raised hands
Freight fraud is not merely a challenge for the logistics industry; it is a growing crisis that threatens national economic security. Each year, fraudulent practices such as double brokering, identity spoofing and cargo theft cost businesses billions of dollars while eroding trust in the supply chain—the backbone of commerce. In response to this escalating threat, bipartisan legislation in the form of HR 8505, the “Household Goods Shipping Consumer Protection Act,” offers a decisive step forward, holding the Federal Motor Carrier Safety Administration (FMCSA) accountable for combating freight fraud effectively.
The FMCSA, as the federal agency tasked with overseeing the trucking and freight industry, plays a pivotal role in safeguarding the integrity of the supply chain. However, the agency’s current approach to freight fraud has fallen short of addressing the scale and sophistication of these schemes. Without clear accountability, standardized reporting mechanisms and sufficient enforcement, the industry is left vulnerable to bad actors who exploit regulatory gaps and technological vulnerabilities. HR 8505 seeks to close these gaps and ensure that FMCSA takes an active and leading role in preventing fraud.
HR 8505 proposes practical and necessary measures, including
- Enhanced Reporting Requirements: Standardized and mandatory fraud reporting protocols will provide the data needed to identify patterns and preempt criminal activities.
- Stricter Enforcement and Penalties: With more robust investigative powers and harsher penalties for offenders, HR 8505 creates a deterrent against fraudulent practices.
- Enforcing regulations on the books: Forcing the FMCSA to enforce current regulations like the principal place of business requirement would reduce fraudulent practices.
- Collaboration Across Stakeholders: The legislation emphasizes public-private partnerships to bring together government agencies, industry leaders and technology experts to tackle fraud comprehensively.
Passing HR 8505 is not just an industry issue; it’s a public interest priority. A secure and efficient supply chain supports countless businesses and consumers nationwide. As fraudsters evolve their tactics, Congress must act decisively to strengthen the regulatory framework, protect stakeholders and bolster economic resilience. TIA has worked very closely with carrier organizations like the American Trucking Associations to address this issue of fraud as this impacts every stakeholder along the supply chain.
With bipartisan support, HR 8505 demonstrates that addressing freight fraud transcends political lines. The time to act is now. Congress must seize this opportunity to pass HR 8505 and empower the FMCSA to uphold its responsibility to the logistics industry and the broader economy.
For those in the logistics sector, the TIA Annual conference this April will provide a forum to discuss advocacy efforts around HR 8505, share insights on fraud prevention and unify the industry’s voice in urging legislative action. Together, we can drive meaningful changes and secure the future of the supply chain.
Burroughs is president & CEO of Transportation Intermediaries Association. For more information about TIA, visit news.tianet.org.
