SAFER Transport Act seeks to eliminate fraud and cargo theft in freight transport

The “Strengthening America’s Freight Transportation Security, Compliance, and Reliability Act” aims to address the many issues related to freight fraud and cargo theft, a persistent problem in the U.S. transportation industry. Introduced in the Senate by Senator Todd Young, the SAFER Transport Act seeks to strengthen federal efforts to prevent, detect, and punish fraudulent actors involved in cargo scams and theft within the transportation sector.

Senator Young stated that the SAFER Act takes important steps to strengthen transportation infrastructure, emphasizing that “Americans deserve safe and reliable supply chains and highways.” The proposed legislation would serve as a tool to combat crime and ensure that roads remain safe for all Americans.

SAFER Transport Act: Combating cargo theft and fraud in the industry

The SAFER Transport Act, which is still a proposed bill, includes several provisions aimed at addressing cargo theft and freight fraud in the transportation industry. These range from establishing security committees to requiring additional screening measures by the Department of Transportation.

One of the provisions calls for the creation of the Freight Fraud and Theft Advisory Committee, which must be established within 60 days after the law’s enactment. The committee would gather public input on how to reduce fraud and theft and provide information and recommendations to the Secretary of Transportation and Congress. It would include representatives from trucking companies (including independent contractors), railroads, ports, maritime terminals, freight forwarders, air carriers, law enforcement agencies, shippers, and insurance companies.

The bill also requires a memorandum of understanding (MOU) between the Department of Transportation (DOT) and the Department of Justice (DOJ). Under this agreement, the DOT would notify DOJ officials of any fraud or cargo theft identified during regulatory or enforcement activities. The DOJ would then be required to establish a process to receive and manage that information.

In addition, the SAFER Act aims to improve the security of the DOT’s registration system by gradually phasing out MC numbers over five years, eventually relying exclusively on USDOT numbers for both brokers and carriers. The bill would also deny registration and the issuance of a USDOT number to anyone convicted of a felony related to theft, fraud, or other crimes in commercial transportation operations.

Other provisions of the SAFER Transport Act include:

• Requiring carriers, brokers, and freight forwarders to notify the Federal Motor Carrier Safety Administration (FMCSA) of any ownership changes within 30 days.
• Requiring states to submit monthly reports to the Secretary of Transportation detailing the number of CLPs, CDLs, non-domiciled CDLs, and endorsements issued, as well as the number and reasons for revocations, suspensions, and downgrades.
• Improving the Training Provider Registry by establishing an auditing process.
• Requiring the FMCSA to develop and implement one or more automated systems to flag suspicious activity in the registration system or by carriers, brokers, and others.
• Requiring foreign dispatch services to register as brokers.

Transportation organizations support the SAFER Transport Act

The SAFER Transport Act has received support from several industry organizations, including the American Trucking Associations, the Owner-Operator Independent Drivers Association (OOIDA), the Commercial Vehicle Training Association (CVTA), the Indiana Motor Truck Association, and the Transportation Intermediaries Association. These groups emphasize the importance of the legislation for small businesses and independent operators.

Chris Spear, president and CEO of the American Trucking Associations, explained that criminals exploit weaknesses in the U.S. Department of Transportation’s registration system to steal company identities and commit cargo theft. In this regard, he stressed that the SAFER Act aims to modernize USDOT systems, strengthen oversight, and penalize fraudulent carriers.