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Over the past 21 years of LGI’s existence, we’ve seen industry regulations come and go, each bringing its own set of challenges and opportunities. From our modest beginnings to handling multi-million-dollar contracts across North America, our success is rooted in our ability to stay ahead of regulatory curves, adapt our services, and build lasting relationships.

We take a proactive approach to understanding new regulations, assessing their impact on our operations, and swiftly adapting our practices to remain compliant and efficient. This guide explores some of the most prevalent regulatory areas impacting freight brokers, providing insights into how these changes shape the sector.

Regulatory Changes Affecting Trucks and Operators

According to the National Safety Council, the last decade has seen a 49% increase in truck-crash fatalities. This trend underscores the importance of stringent safety regulations in the trucking sector, impacting everything from emissions to vehicle operation and cargo handling.

Speed Limiter Mandates

Regulations mandating speed limiters and Automatic Emergency Braking Systems (AEB) are central to enhancing road safety. Speed limiters help control truck speeds, reducing the likelihood of high-speed accidents. In fatalities involving large trucks, speeding was the cause 7.3% of the time. Although it is unclear when the Federal Motor Carrier Safety Administration (FMCSA) will mandate speed limiters, the American Trucking Association (ATA) believes it’s just a matter of time.

Automatic Emergency Braking Systems

AEB systems, on the other hand, automatically engage brakes in critical situations, providing an additional layer of safety. The proposed rule would require heavy-duty vehicles with a GVWR over 10,000 to have an AEB system. Due to the high number of rear-end accidents, The National Highway Traffic Safety Administration (NHTSA) and the FMCSA believe this rule would prevent nearly 20,000 accidents and over 8,000 injuries and save over 150 lives per year.

In addition to these safety regulations, freight brokers must be vigilant about the unique challenges of carrying over-dimensional freight and hazardous materials (hazmat). These operations carry additional risks and require compliance with specific safety protocols and regulations. Proper handling of such loads is critical to prevent accidents and ensure public road safety. At LGI, we take these regulations seriously, and our team is well-versed in the rules governing hazmat and oversized loads.

Regulatory Changes Affecting Drivers

As freight brokers, regulations influence drivers’ availability and performance and shape operational strategies. Compliance is critical to maintaining an efficient, legal, and ethical transportation service in this ever-changing regulatory environment. Let’s delve into some significant regulatory changes affecting drivers and how they impact the broader scope of freight brokerage operations.

Drug Testing Protocols

In recent years, the trucking industry has seen enhanced drug testing regulations. These stricter protocols are part of a concerted effort to ensure road safety, and failure to comply could result in revocation of a driver’s CDL. For freight brokers, compliance with these enhanced drug testing regulations is imperative. Adjusting operations to meet these standards is a legal requirement and a moral obligation to uphold the safety standards of our industry.

Overtime Pay Regulations

Changes in overtime pay regulations present another impact on the trucking industry, particularly concerning driver retention and operational costs. The new overtime pay regulations would impact and potentially enhance compensation for drivers. This change would significantly impact freight pricing, financial planning, and healthy driver relations.

Navigating these regulations is not just about adapting to legal changes; it’s about understanding their ripple effects across the industry. For LGI, it’s about striking the right balance between operational costs and road safety, ensuring we continue providing top-tier service while valuing drivers’ essential role.

A Regulatory Change Impacting Freight Brokers

Under the new rule issued by the FMCSA, freight brokers face tighter regulations to protect trucking companies from unpaid claims. This comprehensive overhaul of broker and freight forwarder responsibility regulations promises to reshape the brokerage landscape significantly.

Financial Security and Assets 

The new rule mandates that brokers maintain certain assets in their trust funds, such as cash, irrevocable letters of credit, and Treasury bonds. These assets must be stable and easily liquidated to pay claims, ensuring brokers have sufficient financial security to fulfill their obligations. Moreover, if a broker’s financial security falls below the $75,000 threshold, immediate action is required, potentially leading to suspending their operating authority. This measure aims to prevent brokers from accruing liabilities beyond their financial capacity.

The change requires brokers to operate with a higher degree of financial stability and ethical standards, ultimately protecting the interests of carriers and maintaining the integrity of the freight brokerage industry. Brokers must now carefully review their financial practices and compliance strategies to align with these new regulatory requirements and continue their operations effectively.

Navigating Industry Regulations with LGI

LGI recognizes the importance of evolving with industry standards, especially as regulations affecting drivers continue to shape the logistics landscape. Our proactive approach to regulations exemplifies our dedication to operational excellence and ethical practices.

Our extensive experience has enabled us to develop a range of specialized services catering to diverse logistics requirements.

  • Heavy Haul Logistics: Expertise in managing complex and oversized cargo with precision and safety.
  • Oil and Gas Transportation: Specialized solutions for the unique needs of the oil and gas industry.
  • Cross-border Logistics: Seamless transportation services across the U.S., Mexico, and Canada.
  • Full Truckload Shipments: Efficient handling of full truckload shipments for various cargo types.

To explore how LGI can support your logistics needs with compliant and forward-thinking solutions, we invite you to contact us. Join us in navigating the ever-changing landscape of freight logistics with confidence and expertise. Request a quote today and experience the LGI difference.