Fraud, licensing, enforcement in American freight proposal

By Alan Wooten
The Center Square

American freight and transportation system fraud, licensing and improved enforcement is in a proposal from a North Carolina congressman.

The SAFER Transport Act, says U.S. Rep. Brad Knott, R-N.C., would “close loopholes exploited by bad actors.” It instructs the federal departments of Transportation and Justice to come to agreement on how they handle information related to freight fraud and has the Department of Transportation establish a Freight Fraud and Theft Advisory Committee.

“For too long, criminals and bad actors have exploited weak enforcement and outdated systems to target our freight network, “said Knott. “The SAFER Transport Act restores integrity, builds real guardrails, and gives our drivers and businesses the tools to stop fraud and theft. When we secure America’s roads, we protect cargo, jobs, families, and our nation’s economy.”

Companion Senate legislation was introduced in February by Sen. Todd Young, R-Ind. Support for the proposals are firm from the American Trucking Associations, the Transportation Intermediaries Association, Retail Industry Leaders Association, and C.H. Robinson.

The acronym for House Resolution 8267 is Securing American Freight, Enforcement, and Reliability in Transport Act.

“Americans deserve safe and reliable supply chains and roads,” said Young. “The SAFER Transport Act takes important steps to strengthen our transportation infrastructure, combat crime that is hurting U.S. consumers and businesses, and ensure our roads are safe for all Americans.”

Young said cargo theft – a trend that will increase consumer prices – is at a record high in the United States, “driven by both domestic and international organizations. These groups are using increasingly sophisticated, fraudulent tactics such as fictitious pickups, double brokering scams, and hostage loads to steal shipments without detection.”

The Federal Motor Carrier Safety Administration would get modern detection systems and expanded enforcement tools. Criminal penalties for registration fraud linked to unlawful operations would also be at its employ, if the bill becomes law.

The understanding for the motor carrier administration and U.S. Customs and Border Protection would “improve enforcement of cabotage restrictions on foreign carriers.” This means restrictions on foreign carriers – air, maritime or road – from transporting goods or passengers between two points within a single country, thus protecting domestic transport industries and national security.

Chris Spear, president and CEO of the American Trucking Associations, said, “We applaud Rep. Knott’s leadership to protect hardworking truckers and small businesses that are not equipped to fight large-scale fraud on their own.”

Chris Burroughs, president and CEO of Transportation Intermediaries Association, and Dorothy Capers, chief legal officer at C.H. Robinson, echoed the sentiment.

Sarah Gilmore, senior director in government affairs at the Retail Industry Leaders Association, said her group was supportive and the measure needed.

“The SAFER Transport Act intentionally addresses freight fraud and theft and complements the Senate’s work on this critical issue,” she said. “Leading retailers are supportive of these bicameral efforts to develop thoughtful, coordinated solutions that reinforce federal collaboration and protect the integrity of the transportation system which plays such a crucial role in ensuring consumers have access to the products they need and want.”