TIA Releases Updated Co-Broker Model Contract

MEDIA CONTACT:

Matthew Evans | evans@tianet.org | 202.498.5919

JULY 22, 2021 – ALEXANDRIA, VA Transportation Intermediaries Association (TIA), the voice of the third-party logistics industry, is pleased to announce the release of their updated Co-Broker Agreement. This updated contract is just one of the many model contracts offered exclusively to TIA Members via the Member Resource Library.

The TIA Contracts Committee began working on the updated model contract earlier this year to confirm the most relevant and recent contractual terms and conditions were reflected in the model agreement. There were additions made that focused on the current legal and insurance landscapes that directly affect the third-party logistics industry and TIA Members.

“TIA is honored to continue to provide these invaluable resources for our members, as a member benefit. I applaud the Contracts Committee and the leadership of Chairman James Lee for their tireless efforts in keeping these model agreements updated and relevant for our members,” stated Chris Burroughs, TIA Vice President of Government Affairs.

To view the latest version of the Co-Broker Agreement, please visit the member’s only section of the TIA website.


The Transportation Intermediaries Association (TIA) is the professional organization of the $214 billion third-party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials, and international organizations. To learn more about TIA, please call us at (703) 299-5700 or at www.tianet.org.

TIA Applauds New C-TPAT Legislation

MEDIA CONTACT:

Matthew Evans | evans@tianet.org | 202.498.5919

JULY 16, 2021 – ALEXANDRIA, VIRGINIA – Transportation Intermediaries Association (TIA), the voice of the third-party logistics industry, released today the following statement on the introduction of legislation that would finally allow Department of Transportation (DOT) licensed property brokers to participate in the Customs-Trade Partnership Against Terrorism (C-TPAT) program. Since the program’s inception back in 2006, TIA Members have not been allowed to participate not because of their merits but because of a bias against DOT licensed property brokers.

“For years TIA Members were inexplicably omitted from a program that was developed in the aftermath of the 9/11 terrorist attacks,” said TIA President & CEO Anne Reinke. “C-TPAT does a great job securing our homeland and defending our supply chain. We will continue to impress upon CBP that 3PLs add value to this effort and we look forward to doing our part to ensure that freight that is being transported cross-border is done to the highest safety standards.”

S. 2322, also known as the “C-TPAT Pilot Program Act” is bipartisan legislation introduced by Senators Cornyn (R-TX), Menendez (D-NJ), Scott (R-SC), and Carper (D-DE). Under the legislation, 10 previously neglected companies will be granted the chance to participate in a pilot program that will give applicant companies C-TPAT certification if they meet the minimum requirements.

“This is a common-sense approach to a problem that never should have taken place. The status quo is contrary to legislative intent. Our members play an integral role in national security. This legislation is about national security, jobs, and fairness,” said Chris Burroughs, Vice President of Government Affairs for TIA.

For more information on TIA’s government affairs and advocacy efforts, please visit us online.


The Transportation Intermediaries Association (TIA) is the professional organization of the $214 billion third-party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials, and international organizations. To learn more about TIA, please call us at (703) 299-5700 or at www.tianet.org.

TIA Signs DOT Anti-Human Trafficking Pledge

Becomes Latest Industry Partner to Join DOT’s Transportation Leaders Against Human Trafficking Initiative

 

MAY 11, 2021 – ALEXANDRIA, VIRGINIA – Transportation Intermediaries Association (TIA), the voice of the third-party logistics (3PL) industry, announced today that it has signed the U.S. Department of Transportation’s (DOT) Transportation Leaders Against Human Trafficking (TLAHT) pledge. In becoming a TLAHT signatory, TIA joins with our partners across the transportation industry to stop the flow of human trafficking.

“Human trafficking is an issue that transcends borders, race, gender, and politics; it is a global scourge that is often overlooked but demands attention and action,” said TIA President & CEO Anne Reinke. “As the voice of the 3PL industry and a leader in the larger transportation ecosystem, it is incumbent upon us as an organization to provide our members with the education, tools, and resources needed to identify and prevent the further spread of this heinous crime. We are honored to stand with the DOT and the transportation industry in support of this momentous initiative.”

TIA made the announcement of its signing the TLAHT pledge during the Day 1 Opening Session of the TIA 2021 Capital Ideas Conference in front of an audience of more than 300 virtual attendees from across the 3PL and freight brokerage industry. TIA President & CEO Anne Reinke was joined by Outgoing TIA Board Chair Brian Evans, CTB, in making the announcement to attendees.

“The U.S. Department of Transportation is proud to work, through its Transportation Leaders Against Human Trafficking Initiative, with the private and public sector across all modes of transportation on critical counter-trafficking efforts, including training front line workers to recognize and report possible instances of human trafficking,” said Julie Abraham, Director of the Office of International Transportation and Trade, whose office leads the Department’s human trafficking initiative.

With as many as 24.9 million men, women, and children sold into prostitution, domestic servitude, or other forced labor globally, human trafficking is one of the greatest atrocities of our time. While it may seem like a problem beyond our borders, human trafficking takes place every day in communities across America – rural, suburban, red, and blue.

“Through the strength of our unified 1,600 member companies, TIA is ready to meet the challenge and lend our network resources to eliminate human trafficking,” stated Brian Evans, CTB, Chairman of the TIA Board of Directors. “As we stand united in our efforts, we are honored to join the Department of Transportation, along with all other organizations, that are working tirelessly to combat this issue in the United States.”

Human traffickers are using America’s roadways, railways, waterways, and skies to traffic their victims. We cannot allow our transportation system to be an enabler in such awful acts. As part of TIA’s efforts in support of the TLAHT initiative, the Association will implement a five-prong approach in support of our pledge focused on leadership engagement, industry education and training, policy development, public awareness, and information sharing and analysis. To learn more about the TLAHT initiative, please visitwww.transportation.gov/TLAHT.

 


Transportation Intermediaries Association (TIA) is the professional organization of the $214 billion third-party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials and international organizations.

Workers Compensation Issues on the Rise

TIA has received feedback from multiple Members recently about the State of New York cracking down on workers’ compensation rights for owner-operators, which is part of a larger effort by multiple states to crack down on employee misclassification. Since New York has been the topic of interest for our Members recently and a focal point of the State to crack down on misclassification, this article will focus on that State’s workers classification laws and how they apply to 3PLs.

Specifically, the State of New York requires New York-based employers to provide workers compensation, with the following allowable exceptions:

  • If the business is owned by one individual and there are no employees, leased employees, borrowed employees, part-time employees, unpaid volunteers, or subcontractors.
  • If the business is a partnership or corporation and has no employees (based on the above specifications).
  • If the business is owned by one or two people, and those people own all stock and offices, and there are no additional employees.

Obviously, the above exemptions would include owner-operators based in the State of New York. With this being the case, you would need to look to the Commercial Goods Transportation Industry Fair Play Act which took effect on April 14, 2014. The statute specifically states:

“Under the Fair Play Act, a driver who possesses a state-issued driver’s license, and who transports goods in the state of New York while operating a commercial motor vehicle (as defined by law), is presumed to be the employee of a commercial goods transportation contractor (as defined by law) who compensates the driver.”

This definition places 3PLs and motor carriers who utilize owner-operators between a rock and a hard place in terms of compliance, but there are a few things you can do to protect yourself before action by the State is attempted.

TIA has prepared a guidance document for our Members to utilize and a “Certificate of Election” to have your motor carriers sign. TIA recommends that its members request certificates of workers compensation insurance from every carrier with whom they do business and put those certificates in the carrier’s file. Without a written certificate of exemption, however, these individuals retain the right to claim coverage. In the trucking industry, the result is that many owner-operators may not have workers compensation coverage but will file a claim if they are injured. The state will look to the contracting entity to cover the cost.

TIA’s position in such situations is that brokers are independent contractors who undertake to arrange transportation but do not take responsibility as carriers. Because brokers do not act as carriers, they do not and cannot subcontract their duties to motor carriers. Nevertheless, some states continue to try and argue that motor carriers are subcontractors to brokers. Further, that the brokers are liable for workers’ compensation claims not covered by the motor carrier because the brokers are prime contractors who are, in effect, employing the motor carrier as a subcontractor.

TIA additionally recommends that you all review your written contracts and evaluate actual day-to-day relationships with owner-operators for compliance with the applicable State laws. We highly recommend being proactive with this process, because after a claim has been filed in a State, the situation gets more complicated.


If you have any questions, please contact TIA Advocacy (advocacy@tianet.org).

Down the Road, the 117th Congress and Transportation

Scott Marks | Government Affairs Manager | TIA

The 2nd session of the 116th Congress has been a whirlwind, packed with a marathon markup of a $2 trillion infrastructure package, COVID-19 response packages, and a lot of pettifogging by both sides of the aisle. Coming up in a couple of weeks will be Infrastructure Week. This is a dedicated week focused on the shared transportation priorities between the Executive and Legislative Branches of the Federal Government to fix America’s crumbling roads, bridges, and other infrastructure needs.

This Infrastructure Week feels a lot like the past ones as once again, the United States Congress has yet to send to the President’s desk a new sweeping, comprehensive surface transportation reauthorization. Instead, it will most likely pass a continuing resolution which means carrying over the spending levels from the previous authorizing legislation. Our United States freight system is about four million miles of highways and roads; 140,000 miles of rail lines; 25,000 miles of inland and coastal waterways; 2.8 million miles of pipelines; and more than 5,000 public airports. We must pass into law a piece of legislation that is just as powerful as the system it looks to overhaul.

Next Congress needs to feel the urgency to pass a sweeping, up-to-date, surface transportation bill that takes into consideration all aspects of the supply chain, shippers, brokers, and carriers. The bill needs to be expansive, while at the same time, empowering states to fix their non-federal highways. Studies are conclusive and substantive on the issue of dollars lost because of the crumbling infrastructure, and as the Department of Transportation’s newly released National Freight Strategic Plan states, the issue will continue to worsen: 

“Freight shipments are expected to increase by 22.4 percent over the next 20 years. Investments in infrastructure capacity and operational improvements will be required to meet rising demand for freight. Yet, freight system performance can be hindered by regulatory, financial, and institutional barriers that raise the economic costs of freight movements.”

Our message to Congress: you must empower states with grants, fund federal programs to expedite construction while at the same, making regulatory changes, we know that pumping money into a problem does fix the underlying issue. Lay out a roadmap for brokers and 3PL’s to certify what a safe carrier is (this is especially crucial as trucks move 72% of Americas Freight), throw out the current audit safety rating system, overall the process to include data from states (that is fair to motor carriers and determines fault for crashes), and continue to allow the transportation industry to be fair, open and competitive without bogging it down with burdensome transparency regulations.

There is a lot to be done for the rest of the Congress and in the 117th Congress, TIA Government Affairs looks forward to working closely with our members, Members of Congress and their staff, the Department of Transportation, and other key players in the Executive Branch and private sector key stakeholders.


If you have any questions, concerns, or want to learn more about TIA’s Advocacy efforts, please contact TIA Government Affairs at Advocacy@tianet.org.

DOL Notice Of Increase Minimum Wage For Those Individuals Involved In Contracts With The Government

Scott Marks | Government Affairs Manager | TIA

February 12, 2014: President Barack Obama signs and issues Executive Order 13658. This order raises the wages of those individuals who are used to facilitate contracts with Government entities. This minimum wage was to be $10.10 at the time of the Executive order.

On September 19, 2019, the Department of Labor published an additional Notice in the Federal Register to announce that, the notice stated beginning January 1, 2020, the Executive Order 13658 minimum wage rate is increased to $10.80 per hour (84 FR 49345). This Executive Order minimum wage rate generally must be paid to workers performing work on or in connection with covered contracts.

In order to stay competitive, keeping up with inflation and deter constant turnover among employees, moving forward on, Jan 1, 2021 “workers performing work on or in connection with federal contracts covered by the aforementioned Executive Order 13658, Establishing a Minimum Wage for Contractors (the Executive Order or the Order), beginning January 1, 2021. Beginning on that date, the Executive Order minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $10.95 per hour.”

For the TIA Members who handle government freight, if they have sales associates that they use to enter contracts with the Government, they would have to pay them the updated rate of $10.95. Please find the Department of Labor (DOL) poster that outlines the new regulations here or view the newly released rule here.

Blog 6 – GSA Drops Major National Security Rule, TIA Members Are Affected

Scott Marks | Government Affairs Manager | TIA

Starting August 13, 2020, members will no longer be able to both enter into contracts for service with the government and have in their operations what are called “covered telecommunications.” Member companies must begin now to certify that their internal processes do not contain any one of a multitude of malicious Chinese companies. This regulation comes from legislation that passed in 2018, H.R. 5515, the John S. McCain NDAA, specifically section 889 parts (A) and (B).

Part (A), while important, is not directly germane to the TIA membership base. This part has to do with procurement and acquisition. The head of a government agency may not move forward with any acquisition of services or technology that has “covered technology.”

Part (B) directly impacts our members, it can’t be stressed enough, if you are a member of TIA starting August 13th if you have use a covered service in your operations you will not be able to move freight for the government.

A covered telecommunication technology means the following: Any service and equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of those entities) and certain video surveillance products or telecommunications equipment services produced or provided by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of those entities).

Members must take the time, review internal procedures, and ensure they do not use one of the technologies in their office. A contractor may certify that it does not use covered equipment or services if its “reasonable inquiry” does not identify such use. A “reasonable inquiry” is one “designed to uncover any information in the entity’s possession about the identity of the producer or provider” of covered equipment or services used by the entity.

It is important to note, reasonable inquiry does not require an internal or third-party audit, it just means you must be able to show affirmatively that you took steps to uncover if the entity is in possession of covered telecommunications technology. This will be a deciding factor for contracts starting August 13, 2020.

The government agencies implementing this regulation have asked for broad feedback as they fine-tune the rule to be more business-friendly while still posturing the regulation as a national security tool. If you’re interested in providing feedback as to how this will impact your business, do not hesitate to reach out.

Like all legislative action, TIA Government Affairs will monitor, track, and respond in real-time. We work directly with our conferences and committees and the organization at large to ensure our members are up to speed.

To view our resource on this rule, click here

To view the rule in its entirety, click here


If you have any questions, concerns, or want to learn more about TIA’s Advocacy efforts, please contact TIA Government Affairs at Advocacy@tianet.org.

2020 TIA Policy Forum: Be Present and Be Engaged

In just a few weeks, TIA’s Government Affairs team will be hosting our first virtual fly-in on September 30 – October 1. We urge all of our members to get signed up and get engaged with their Members of Congress. While we understand and are disappointed that we will miss seeing everyone in person and physically walk the halls of Congress, we are excited about the virtual policy forum. This will allow TIA Members to still connect with their Members of Congress and advocate on behalf of their business and the 3PL industry. Registration is complimentary to TIA Members. Please use this link to register: Here.

Our members play a vital role in our mission on Capitol Hill, they not only set the policy we fight for, but also support our TIAPAC efforts and directly deal with the ramification of our efforts. There is not a better example than the supply chain rate transparency issue, if our government affairs team did not activate our Members at the grassroots level, this issue would have likely gained more steam and possible legislative changes could have been discussed. Lawmakers crave and thrive on connections with local business owners and their constituents, in the end, you all are the people that decide if they are reelected or not, and your voice matters greatly to them.

Please, join us from September 30 – October 1 as we take the hill virtually, we want our message to be heard in offices throughout the United States. TIA staff will be coordinating to ensure productive meetings by both state and district. TIA is a leader and the voice of the 3PL industry, staff on Capitol Hill know this, Members of Congress know this and with your help, we can deliver this strong statement once again.

About the 2020 TIA Policy Forum:

  • Two-Day Virtual Event with Congressional Meetings, High-Level Briefings & Exclusive Networking Opportunities
  • Advocate on Behalf of the 3PL Industry & Your Business
  • Build Personal Relationships with Your Elected Officials
  • Meet Your Federal Lobbyists & Learn How They Protect 3PLs
  • TIA Members-Only Event
  • Registration Fee: Complimentary for TIA Members

 

If you have any questions or concerns, please do not hesitate to reach out and inquire with Advocacy@tianet.org. TIA Government Affairs is here to serve you. We need as many people signing up for this event as possible. Please use thins link to begin the registration process: Here. Thank you and we look forward to seeing you (virtually) soon.

Plans for the TIA Airfreight Logistics Conference

The Transportation Intermediaries Association (TIA) is comprised of several Conferences and Committees which help guide external positions while shaping internal policies. One area in which TIA sees as a major area of growth is the Airfreight Logistics Conference. This is quickly becoming a popular Conference, not only for members who are already in that field but TIA members that want to expand their current operation and enter into a new mode of moving freight.

The Airfreight Logistics industry is an exciting segment of the third-party logistics industry, with great potential growth areas for 3PLs to facilitate the transportation of airfreight. The Conference will look to broaden its influence and knowledge of Airfreight logistics by engaging our members with great speakers and a program which adds value to our member companies.

While the details remain in negotiations, I am excited to announce that on our next quarterly call we will have a speaker from Transportation Security Administration (TSA) Indirect Air Carrier Program (IAC) to provide a current overview of the industry from a regulatory perspective and how this will change in the future. Additionally, we will engage with the speaker with questions on the future on air cargo and screening programs. The call will be open to non-conference members, this means that members of TIA that are not yet apart of this Conference will have the ability to join and be part of this important meeting.

The IAC is just one of the many associated programs at TSA, including:

  • 100 Percent Screening Requirement;
  • Air Cargo Screening Technology List;
  • All Cargo Aviation Programs;
  • Consent to Search or Inspection;
  • Certified Cargo Screening Program; and
  • Known Shipper Management System.

As part of the strategic plan for TIA over the next years, TIA will look to increase its role in the international logistics arena, by not only being the U.S. Member of FIATA, but serving as one of the voices to provide industry stakeholders and the general public with the necessary information and resources. As always, we look forward to hearing from our members on how TIA can provide more value for your company.

TIA is the premier organization for third-party logistics professionals in North America and abroad. Membership at TIA adds value to your business and provides resources for growth.
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