Strengthening U.S. Trucking and Freight Protections
Former President Trump has expressed strong support for truckers. If that commitment is genuine, it’s time for meaningful action—starting with cleaning up the U.S. Department of Transportation (USDOT) and the Federal Motor Carrier Safety Administration (FMCSA).
For more than 25 years, these agencies have struggled with inefficiencies and regulatory gaps. Of the 19 Secretaries of Transportation since 1966, only two had direct industry experience. If the next administration is serious about protecting port workers, it must also ensure that American truckers and freight brokers receive the same level of support. This is not political rhetoric; it’s an economic reality. U.S. freight brokers and motor carriers already face fierce competition within the domestic market. Now, they must also contend with offshore call centers and foreign entities leveraging regulatory loopholes to operate within the U.S. freight system.
According to the USDOT Census Report, there are 2,175,277 registered USDOT numbers, with approximately 3,339 assigned to entities outside Canada and Mexico. The Jones Act and other cabotage laws restrict foreign motor carriers and truck drivers from engaging in domestic freight transportation. Canadian and Mexican carriers are permitted to operate under trade agreements, but their USDOT registrations are limited to transporting freight between their home countries and the U.S. Despite these regulations, foreign motor carriers and freight forwarders from other nations are actively participating in domestic freight operations.
Additionally, some U.S.-registered trucking companies are outsourcing dispatch functions to offices in Eastern Europe and South Asia. Ghost brokers—fraudulent entities that manipulate freight transactions—are using U.S. addresses while operating overseas call centers, creating an uneven playing field for legitimate American carriers and brokers. This situation poses significant economic and security risks, warranting immediate regulatory scrutiny.
- Regulatory Loopholes & Enforcement Gaps
While the Jones Act and cabotage laws aim to prevent foreign carriers from engaging in domestic freight transport, the presence of thousands of USDOT registrations outside Canada and Mexico suggests potential regulatory gaps. The FMCSA and USDOT must enforce existing restrictions more rigorously to prevent unauthorized foreign participation in U.S. domestic freight markets. - Ghost Brokers & Fraudulent Practices
The rise of ghost brokers has led to increased freight fraud, including double-brokering schemes and financial losses for American carriers. Many of these brokers register a U.S. address (e.g., 30 N Gould Street, Sheridan, Wyoming) but operate remotely from countries such as India, Pakistan, and Eastern Europe. The FMCSA’s insufficient oversight of brokerage registrations has allowed fraudulent entities to exploit the system, leaving American truckers unpaid and vulnerable to scams. - Unfair Market Competition
American trucking companies, especially small and mid-sized carriers, must comply with stringent safety, tax, and labor regulations. In contrast, foreign-controlled entities often sidestep these requirements, using lower-cost labor and unregulated dispatch operations to undercut U.S. freight rates. This dynamic pressures legitimate American businesses and suppresses fair wages for U.S. drivers. - National Security Risks
Freight transportation is critical infrastructure, and allowing foreign-controlled logistics firms to operate with minimal oversight raises serious security concerns. Offshoring dispatch operations can lead to supply chain vulnerabilities, including data breaches, cargo theft, and potential exploitation by hostile entities. Strengthening oversight is essential to safeguarding U.S. logistics networks.
Why the U.S. Must Strengthen Freight Regulations
- Ensure Compliance with U.S. Cabotage Laws
The FMCSA must reinforce existing laws to prevent unauthorized foreign motor carriers and brokers from engaging in U.S. domestic freight operations. Canadian and Mexican carriers should continue to operate under established trade agreements, but additional foreign participation should be restricted. - Eliminate the Ghost Broker Loophole
All brokerage operations should be required to provide verifiable proof of U.S.-based operations, with domestic employees and oversight. Enhanced background checks, licensing requirements, and enforcement measures will help prevent fraudulent registrations. - Protect the American Trucking Workforce
Keeping foreign-controlled logistics firms out of the domestic market ensures fair competition for American carriers, truckers, and brokers who comply with U.S. labor and tax laws. Stronger regulatory enforcement will help preserve a level playing field for U.S. businesses. - Enhance National Security & Supply Chain Integrity
Restricting foreign involvement in U.S. freight markets will reduce security risks, prevent cyber threats, and protect against fraud that undermines American infrastructure. Strengthening oversight will help maintain supply chain resilience.
The unchecked expansion of foreign motor carriers, offshore dispatch operations, and fraudulent brokerage entities presents a direct threat to American trucking, freight pricing, and supply chain security. While Canada and Mexico have legitimate cross-border trade rights, there is no justification for additional foreign entities operating in U.S. domestic freight markets.
Stronger enforcement, tighter regulation, and better oversight of USDOT registrations, brokerage licensing, and foreign logistics operations are critical to protecting American businesses and workers. The time to act is now.
