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TIA Highlights $800M Trucking Fraud Issue to Congress
Representing TIA, Freight brokerage CEO Jeffrey Tucker warns Congress about an $800M fraud problem in trucking, urging FMCSA enforcement.
The Transportation Intermediaries Association (TIA) voiced a grave concern to Congress: fraud in trucking is spiraling to an $800 million dilemma. Jeffrey Tucker, CEO of Tucker Company Worldwide, a freight brokerage based in New Jersey, spoke on TIA's behalf, emphasizing the urgent need for the Federal Motor Carrier Safety Administration (FMCSA) to tackle this rampant issue.
Fraudulent Practices Escalating
- Rising Costs: Fraud in trucking costs are reaching $800 million.
- Security Risks: These illegal activities pose economic, safety, and security concerns.
Tucker's testimony emphasized the surge in fraudulent actors, posing as legitimate carriers or brokers, committing theft, and even holding freight hostage. He criticized the FMCSA for their lack of action on the tens of thousands of fraud complaints, stating, "FMCSA must stop dabbling in non-safety commercial considerations... Instead, focus on safety."
Tucker also debunked the notion of a driver shortage, a narrative he claims could weaken America's supply chain. He noted an increase of 1 million drivers over the last decade, calling for a more nuanced dialogue on the topic.
Additional Industry Concerns
Tucker touched on other pressing issues, such as the need for long-term investment at the Mexican border and the challenges posed by state regulatory issues on interstate commerce.
Global Supply Chain Concerns
- Red Sea Security: Recent attacks on cargo vessels in the Red Sea by Houthi rebels are causing shipment delays and rerouting issues, with ships taking longer voyages around Africa.
- Unexpected Costs: Tucker also raised concerns over additional fees charged by ocean carriers due to these disruptions.