The trucking industry, a vital artery of the U.S. supply chain, is facing an $800 million challenge due to rampant fraud, warns the Transportation Intermediaries Association (TIA). In a recent hearing before the U.S. House Transportation and Infrastructure Committee, Jeffrey Tucker, CEO of Tucker Company Worldwide and representative of 3PLs and brokerage firms, shed light on the alarming increase in fraudulent activities affecting the industry.
Tucker emphasized the surge of malicious actors engaging in illegal activities, registering as carriers with the Federal Motor Carrier Safety Administration (FMCSA), and perpetrating fraud, theft, and holding freight hostage without facing legal consequences. This not only poses an economic threat but also raises safety and security concerns.
“FMCSA is failing to enforce the law or investigate the tens of thousands of fraud complaints lodged with it,” Tucker stated, highlighting a significant oversight that demands urgent attention.
He also pointed out that the problem extends beyond carrier or broker fraud, emphasizing that these are acts committed by criminals masquerading as brokers or trucking companies. He cited instances of fraud involving dispatch services based in other countries, not requiring licenses or registrations from the FMCSA, creating challenges for effective oversight.
Tucker urged the FMCSA to refocus on safety considerations and take decisive action against fraudulent activities. He emphasized the need for effective measures to address and enforce solutions to curb the dysfunctionality of the supply chain and mitigate its adverse impact on the broader economy.
What about the driver shortage? Tucker challenged the narrative of a driver shortage, stating that it is a false perception that could lead to unintended industry consolidation and weaken America’s supply chain. He emphasized the need for a more nuanced conversation, pointing out the doubling of American carriers and a significant increase in drivers over the past decade.
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