Sergey “CJ” Karman – “If FMCSA delays crackdown on freight brokers – we’ll come back to D.C.”

Even though the nearly three-week rally in Washington D.C. just ended, truckers are already talking about the possibility of returning.

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Sergey “CJ” Karman and Mike Landis share the news after White House meeting

Washington D.C. – Two leaders of the ongoing rally in Washington D.C. met with top Trump Administration officials at the White House on Wednesday morning.
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Trump backs U.S. trucker protest against ‘monopoly’ freight brokers. White House Chief of Staff Mark Meadows and Ezlogz CEO and Founder CJ “Sergey’ Karman discuss the issues on May 13, 2020.

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Ezlogz attorney reaches out to the DOJ for broker transparency under 49 C.F.R § 371.3(c)

To whom it concerns:
We write on behalf of our client, Ezlogz, Inc., a logistics and compliance support company for truckers and small business owners in the trucking industry, to report a systematic practice by industry brokers to circumvent the disclosure requirements set forth in 49 C.F.R. § 371.3(c) (hereafter, the “Disclosure Rule”). The brokers work with retailers to obtain loads and then broker those loads to independent operator truckers or to small trucking companies, among other carriers. Under the regulations set forth Federal Motor Carrier Safety Administration, Department of Transportation, brokers are required to both maintain records – including the amount of compensation the brokers receive from brokering the load transaction – and share such information with all parties to the load transaction.
In reality, brokers have banded together to conceal from drivers the compensation cut the brokers are taking in brokering the loads. The result on the operators (many of whom barely make enough money to support their families) is wage suppression for the drivers. By refusing to comply with the disclosure requirements, brokers are not compelled to compete over price – the fees they take. The brokers have, in effect, formed a cartel and have – as an industry – colluded to conceal broker fees from drivers and trucking business owners in violation of the regulations.
Brokers accomplish this in a few ways. First, the industry has, at part of its standard contract, a “Broker’s Records” section that requires the carrier to waive the its rights to obtaining records pursuant to the Disclosure Rule. It is an industry-wide practice, so carriers have no choice but to sign. Second, where small businesses or independent owner-operators are concerned, brokers target non-English speaking drivers and others who are not aware of the Disclosure Rule or will not contest the broker’s refusal to share the required information. Those truckers who do request information under the Disclosure Rule are systematically blacklisted by the industry.
We are asking that the Department of Justice investigate the industry to confirm the widespread use of the required waiver language (which, incidentally, begs the question of whether such waivers are legally enforceable) and the targeting practices employed with owner-operators. Simple subpoenas to various brokers, including, for example, TQL, CH Robinson, Coyote Logistics, JB Hunt, Trinity Logistics, and Schneider could be a start. In addition, persons who have left the broker industry will almost certainly confirm that they work together to ensure that commission rate data required under the Disclosure Rule is never provided. Finally, drivers and business owners (and we can connect you with several) will confirm that there is no ability to ever negotiate the waiver of the Disclosure Rule that brokers uniformly require.
Please consider initiating this investigation as soon as possible. The industry has been ravaged by COVID-19, and the brokers anti-competitive practices only exacerbate the difficulties that drivers and small business owners in the trucking industry is facing.
We look forward to receiving your response.
DLA Piper LLP (US)

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#AmericanTruckers in D.C. follow up with letter to President Trump.

Dear President Trump,
We are the small business owner-operators in the trucking industry. We are the dedicated and hard-working men and women who hail from all fifty states in the union. We take pride in our important role in keeping America great. Trucking companies with 25 trucks or less haul the majority of the freight in the nation. We are the lifeblood that makes our economy the envy of the word. However, despite what we have achieved during this time of national emergency, we are in trouble, and it is our responsibility to make you aware of it. Mr. President, we seek your help in making sure that together we make trucking great again.
On May 1st, 2020, over 100 trucks and more than 30 operators in personal vehicles descended on our nation’s capital. Trucks parked on the tree-lined lanes of Constitutional Avenue and blared their horns respectfully in a mayday call to you. Mr. President, we are in distress, and we need your help now. We are here in representation of all of our brothers and sisters who could not accompany us into the capital because they are making sure that the supply chain isn’t broken. We have coordinated and united men and women from all creeds and backgrounds with the intent on making you and the American people aware of the crisis we face in the trucking industry today. We seek relief for all owner-operators, small business, and the American trucker who is currently struggling to remain afloat even while trying to keep our economy from total collapse.
While there are many issues such as rates, and safety, we have put together just a few that require immediate attention.
These are the issues that need to be addressed:

  1. No double and/or co-brokerage-Prohibit brokers from selling the same load more than once.
  2. Transparency-Mirror government policy on freight. All information, including financial details, must be available to parties involved before the load is booked. Set up packages that include a clause to waive rights to review the record of transaction, hence violating federal regulation 49 CFR 371.3.
  3. Cap brokers –Brokers shall be capped at a certain percentage from the gross.
    We are ready to provide the needed data and details to move this process and policies forward to both yourself and also forwarding to DOJ. The 1989 Quantum agreement between J.B. hunt and Santa Fe railway needs to be reviewed. The set-up packages from brokers that includes verbiage that waives the rights to review record of transaction needs to be forbidden. The attached document shows the cost vs the current rates offered. This movement is to improve the trucking industry and to help the truckers. We appreciate your time, Mr. President.

#Truckers United

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Ezlogz CEO #”CJ”SergeyKarman asks for broker transparency in letter to President Trump.

Dear Mr. President,
I am writing this message on behalf of truck drivers that united in requesting for assistance that is direly needed. There is a pandemic in the trucking industry in America right now. My name is CJ Sergey Karman, and I started in the industry in 2009 as a truck driver and became a broker in 2011. Now, as founder/CEO of my own Fleet management software company, I am here to stand up for truck drivers that are being taken advantage of by some brokers. We need immediate relief, as the truck drivers are the backbone of this country. All other areas of the trucking industry are currently regulated, and it is time to make changes before it is too late.
On May 1st, 2020, over 70 small-business trucking companies lined their trucks along Constitutional avenue and blared their horns as a Mayday call to you, Mr. President, we need help now! Rick Santiago organized this movement to give hope to the struggling drivers that are currently being robbed of fair opportunities in the industry. Everyone involved has been standing with these truck drivers in Washington D.C., to move this agenda forward, and get this letter into your hands. While there are many issues such as rates, and safety, we have put together just a few for focus.
Below listed are issues that need to be addressed:

  1. No double and/or co-brokerage. Prohibit brokers from selling the same load more than once.
  2. Transparency – Mirror government load policy, so all parties dealing with the load are listed. The amount every party is charging shall be on the Bill of Landing and announced before each load is booked.
  3. Cap brokers –Brokers shall be capped at a certain percentage from the gross.
    We are ready to provide the needed data and details to move this process and policies forward to both yourself and forwarding to DOJ. This movement is to better the trucking industry and to help the truckers. We appreciate your time, Mr. President.
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The Cares Act can save your small business!

Ezlogz cares about you and your small business! Here’s what you need to know:
On March 25, the federal government has signed the CARES (Coronavirus Aid, Relief and Economic Security) Act, which provides $349 billion in Small Business Administration (SBA) loans. The goal of the government is to support small businesses during the COVID-19 pandemic, so they can keep their workers.

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Proposed hours of service changes sent to White House

Changes to the federal regulations that govern how many hours truckers may drive each day have taken a step closer to being changed.

Speaking at the Truckload Carriers Association annual convention in Kissimmee, Florida Tuesday, March 3, Federal Motor Carrier Safety Administration Acting Administrator James Mullen announced the final rule was sent last night to the White House Office of Management and Budget. By law, the OMB has 90 days to rule on the proposed regulation, but there’s a provision that allows that to expand to 120 days.
“While I can’t go into the specifics of this final rule, please know that the goal of this process from the beginning has been to improve safety for all motorists and to increase flexibility for commercial drivers,” Mullen told the filled ballroom at the Gaylord Palms Resort. Talking to reporters after his speech Mullen said he would not and could not attempt to guess how the OMB might react to the proposed changes.

FMCSA’s proposed hours of service reforms, published last August, called for several changes to existing hours of service regulations, all of which then Administrator Ray Martinez said would provide greater flexibility to drivers. Chief among them was the ability for drivers to pause their 14-hour on-duty clock one time and go off-duty for up to three hours. It also provided the option for drivers to extend their 14-hour clock by two hours if they face adverse conditions such as traffic or weather.
If the OMB approves the rule, the next step would be for FMCSA to publish the rule in the Federal Register and set an implementation date.
In his address to TCA, Mullen emphasized the importance of the hours of service changes. He said, “It’s my priority, it’s the priority of the Secretary (of Transportation Elaine Chao), it’s the priority of this Administration to get these modifications finished.”

Mullen also touted the success of the agency’s recently opened Drug and Alcohol Clearinghouse. He said more than 680,000 drivers have been entered into the database, and that 9,000 drivers who have failed or refused testing have been identified. He said this is critical to highway safety.
The former Werner executive also touched on the success of the mandated electronic logging device regulation. Since becoming mandatory, there has been a 52% reduction in hours of service violations and that during roadside inspections less that one percent of drivers are non-compliant with ELD use.


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FMCSA Issues Temporary Final Rule That Continues Entry-Lev-el Driving Education Rules.

The Federal Motor Carrier Safety Administration has published a temporary final rule providing for a two-year delay in implementing the final agency rule of December 8, 2016, “Minimum Requirements for Training Entry-Lev-el Commercial Vehicle Operators,” the latest ELDT rule.

The provisional final rule extends the date the rule is observed from February 7, 2020, to February 7, 2022.

A notice posted in the Federal Register says that a delay in the compliance date will provide FMCSA with additional time to complete the development of a Training Service Provider Register (TPR). The Extension will allow training providers to independently confirm that they meet the training requirements.  The TPR will further provide an electronic interface, which will receive and store (ELDT) certification information from training providers and transmit this information to state driver licensing authorities (SDLA).

For participants in the US automotive market, the notification of the Federal Register was not a surprise, since FMCSA announced at the end of November that it was preparing a notification, but did not know when it would be published.

This ELDT rule is in the interest of everyone’s safety. In turn, CVTA will continue to push for ELDT implementation before the 2-year delay.

This extension applies to all requirements established in the December 2016 final rule, including:

  • The date by which the training service providers should start uploading the training certification information for a specific driver to TPR, an electronic database that will contain ELDT information;
  •  The date by which the 5DLA must confirm that applicants for Commercial Driving License (CDL) have complied with ELDT requirements before passing a specific knowledge or skill test;
  •  The date by which training providers wishing to provide ELDT must be indicated in the TPR;
  • The date by which drivers seeking CDL or approval must receive the necessary training as indicated in the final ELDT rule.


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Owners of Trucking Company Guilty of Forcing Drivers to Falsify Safety Records

On Monday September 16, the owners of CDE Corporation and Winsor Hill Hauling and Recycling Corporation, based in Rhode Island, were sentenced to 12 months of probation and fined $1250 for instructing employees to falsify federally mandated United States Department of Transportation (USDOT) Driver Vehicle Inspection Reports (DVIR) so their trucks, needing repair, could remain on the road.

The owners, a married couple, Leslie Cucino and Robert Cucino, Jr. admitted to threatening their drivers to report “no defects” on the DVIR reports otherwise they will be fired. The drivers knew of serious defects but falsified records to keep their jobs. 

Although both Companies are closed down now the scheme went on for years. In multiple cases officers in Rhode Island and Massachusetts issued inspection reports, citing many defects such as faulty brakes. The couple plead guilty to the charges.

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