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occurs not just between brokers and car- a lot of bad information being spread The FMCSA has not been enforc-
riers but also between carriers and carri- about the rule, such as the incorrect ing the rule, but Saylor hasn’t heard of
ers. In fact, the TIA publishes a 58-page assertion by some that a carrier must any widespread disobedience. Naturally,
document that instructs its members form two companies: one to carry he’s advising his clients to purchase
how to select a carrier properly. freight and another to broker it, though the bond rather than break the law.
O’Liddy and the TIA’s senior such a move might be advantageous. The penalty for performing brokerage
government affairs manager, Chris “The main thing that we’ve seen services without the proper authority is
Burroughs, said that the brokerage is, for the first time, people are actually $10,000 per violation, and if the com-
industry is far more than salespeople paying attention to whether the par- pany doesn’t pay, the officers and prin-
with telephones. Sixty (60) percent of ties they’re dealing with have the right cipals are liable.
the TIA’s membership is asset-based, authorities,” he said.
and was so before the passage of the
MAP-21 provision. Many major carriers
Regional Journal of the Arkansas Trucking Association Volume 6, Number 2 • April 2001 • $4.95 Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 14, No. 3 • June 2009 • $4.95
have logistics companies that operate
with carrier authority. Brokers operate Tim Hill
ShifTing gearS
on tight margins and have costs like
other businesses, such as paying for
insurance. “We feel without the broker-
age industry, most of the owner-oper-
ators would have no freight to move,” Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 15, No. 3 • June 2010 • $4.95 Death Tax • Size and Weight Laws • Legislative hearing Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 14, No. 6 • December 2009 • $4.95 Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 16, No. 2 • Issue 2 2011 • $4.95
O’Liddy said. “That’s 100 percent our 25,000
market, which is why we care that they
get paid, and which is why we agreed to
the language.” ReadeRs
Sean McNally, ATA spokesman,
confirmed that the ATA had supported
stRong
the compromise and is staying out of Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 13, No. 1 • February 2008 • $4.95 Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 12, No. 2 • April 2007 • $4.95 Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 15, No. 1 • February/March 2010 • $4.95
the current controversy.
“OOIDA and TIA had been in talks
for some time to enact legislation that
increased the bond amount,” McNally
said. “ATA supported an increase in
the bond amount and negotiated some
Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 15, No. 6 • December 2010 • $4.95 Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 16, No. 3 • Issue 3 2011 • $4.95 Award-Winning Regional Magazine of the Arkansas Trucking Association Vol. 17, No. 2 • Issue 2 2012 • $4.95 Award-Winning Regional Journal of the Arkansas Trucking Association Vol. 15, No. 2 • April 2010 • $4.95
changes to the legislative language to
continue to allow interlining. The legis-
lative language was a compromise that
ATA supported. However, there are a
number of state trucking associations
and two ATA conferences that object
to the prohibition on motor carriers
subcontracting to other motor carriers already an award-winning regional magazine, we’re
without having broker authority. Those pleased to announce Arkansas Trucking Report
entities are pursuing a fix, and ATA is
neither opposing nor supporting their (ATR) still boasts a more than 25,000 readers
efforts.” nationwide and we continue to grow. that makes
Saylor, the partner with the ATR a great place for you to advertise.
Scopelitis legal firm, said the change
hasn’t seemed to have had too big of If you want to reach this highly targeted, influential group of our industry's
an effect on his clients. Many of which leading decision-makers and ask them to consider purchasing your products or
already have broker authority, and most services, then you’ll want to place an ad in every issue of ATR.
of those that don’t have not sought it.
No one has realigned their existing Please contact Jennifer kidd, publisher, jennifer@matthewspublishing.com
operations to take advantage of the to make it happen.
interline exemption. He said there’s
aRkaNSaS tRuckiNg RepoRt | issue 2 2014 35

