TIA Member Testifies in Front of House T&I Committee
On Wednesday, Jan. 17, former TIA Chairman of the Board of Directors Jeff Tucker, CEO of Tucker Company Worldwide, testified before the House of Representatives’ Transportation & Infrastructure Committee at a hearing titled, “The State of Transportation.” Tucker represented TIA and the logistics industry and spoke about fraud, the supply chain, and economy.
Tucker highlighted the importance of logistics in transportation, warehousing and distribution, emphasizing their role in supporting the economy, job creation and national security. Jeff also addressed challenges such as supply chain disruptions, the evolving role of brokers, and the urgent need to address fraud in the supply chain for the industry to function effectively.
The big picture: Supply chain vulnerabilities, border closures, labor shortages and environmental initiatives dominated the conversation. Members of the T&I Committee heard from witnesses whose backgrounds spanned all facets of the transportation industry and shared more about the legislative and regulatory steps that have been taken to increase supply chain efficiency. Witnesses provided insight into the challenges and opportunities in their respective industries, further highlighting the interconnectedness and scale of our nation’s supply chain.
Chairman Rouzer asked “What priorities should we focus on?"
Tucker – Encouraging the FMCSA to work more on safety and combating fraud and less on commercial terms.
Congressman Nehls asked “How do the delays and suspensions of cross border activity affect supply chain and logistics across the country?”
Tucker – The impacts are significant, especially for food and things that have an expiration date. But the challenge needs to be faced, we need to continue moving this freight. There is way more freight moving north from Mexico, and expect it to continue, so we can’t afford to have closures like that. Working with industries and letting them know of potentials like this would help mitigate the impacts. There needs to be a better collaborative environment around stoppages like this.
Congressman Bost asked “Have you seen any action from FMCSA to put up a stop to rising freight fraud? Do you see anything that’s being done right now to deal with this in the industry?
Tucker – The short answer is no, they’re doing nothing. This shouldn’t be seen as carrier fraud or broker fraud – these guys are just criminals. We move multimillion dollar palettes of freight, like pharmaceuticals, and these criminals follow our trucks and wait for an opportunity to strike. They are utilizing the FMCSA and government agencies to sign up as a brokerage or carrier and masquerade as someone they are not. There needs to be more education and action around the issue.
Why it matters: Logistics professionals make the world go ‘round and keep America’s supply chain running. As a witness, Tucker represented the voice of third-party logistics professionals and made critical issues, like fraud in the supply chain, more top of mind for our nation’s leaders. He emphasized the role that education, collaboration and regulation will play in mitigating supply chain disruptions and urged representatives to act against the pervasive fraud epidemic, which costs Americans over $800 million.
TIA thanks Jeff for articulating to the Committee the current needs of industry and America’s supply chain. Please click here to watch the hearing in full, including Tucker’s remarks.
TIA Attends FMCSA Registration Modernization Stakeholder Day
The recent Registration Modernization Stakeholder Day, organized by the FMCSA on Jan. 17, had a central goal: to collect feedback from key logistics stakeholders, including brokers/freight forwarders, third-party service providers, and carriers. The event aimed to reimagine and enhance the existing registration system, acknowledged by the FMCSA as falling short of industry standards and sometimes hindering daily supply chain operations.
TIA actively participated in the broker/freight forwarder "caucus room," contributing to discussions on critical topics such as bolstering security measures for identity verification, combating marketplace fraud (both cyber and cargo theft), and conducting market analysis. TIA presented a comprehensive set of recommendations to improve the functionality and efficiency of the new registration system.
Recommendations included implementing dual-factor authentication, enforcing a principal place of business requirement, verifying the identity of entities to confirm U.S. domicile, ensuring real-time updates of registration status, and enforcing MAP-21 provisions. Additionally, suggestions were made for establishing an internal fraud task force, requiring dispatch services to be registered with DOT, and creating a unified, one-stop-shop system for safety-related matters.
Post-caucus discussions saw stakeholders converging to share their wish lists for the new registration system, emphasizing the need to enhance fraud detection, improve user-friendliness, and provide crucial carrier authority status data, among other things.
FMCSA concluded the event by assuring stakeholders of future feedback sessions, emphasizing their commitment to a collaborative dialogue for system improvement. The event showcased the agency's appreciation for industry experts' insights and their dedication to aligning the registration system with industry standards. TIA remains hopeful that its feedback will be integrated into the new model, contributing to a more efficient and industry-responsive system.
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