In a hearing today before the House Committee on Transportation and Infrastructure, Transportation Intermediaries Association (TIA)President & CEO Anne Reinke provided solutions to alleviate the supply chain disruptions and improve the free flow movement of goods. She also highlighted the role that logistics companies play in the supply chain.

“While there is not one single solution or action that will immediately alleviate the supply chain disruption, several solutions exist that would help improve the movement of goods,” noted Reinke. “The safest and most secure marketplace is also the most efficient and functional marketplace.”

Reinke suggested the Federal Motor Carrier Safety Administration (FMCSA) prioritize a few safety issues, including the development of a more robust and effective motor carrier safety rating process. Currently, the FMCSA uses an outdated physical audit system, but it doesn’t have the proper resources to conduct safety inspections for the vast majority of motor carriers. Consequently, 92% of trucking companies are unrated, causing confusion and uncertainty in the vetting process for TIA members.

She explained that the industry needs a new safety rating system built on fair and reliable data. A few years ago, TIA supported H.R. 915, a bipartisan legislation that would require the FMCSA to begin developing a new Safety Fitness Determination process to change the way carriers are rated.

During the testimony, Reinke also discussed the impact that fraud has on the logistics industry and its customers. As a leading voice in the logistics industry, TIA has been closely following the issue of fraud in the supply chain for decades, which has become an increasingly significant problem in recent years. More than 80,000 complaints have been submitted to the FMCSA-monitored National Consumer Complaint Database, but not a single one of them has been investigated.

“The supply chain is in the midst of a fraud epidemic, estimated to cost brokers, carriers, and shippers around $800 million,” wrote Reinke. “Unfortunately, there is an increase in bad actors in the space illegally brokering freight, registering as carriers using hundreds of MC numbers, and conducting outright fraud, theft, and holding freight hostage, without any legal consequences.”

She emphasized the importance of addressing this issue and outlined TIA’s efforts to combat fraud through ongoing collaboration with government agencies.