By Matthew Leffler
The opinions expressed here are solely those of the author and do not necessarily represent the opinions of FreightWaves or its affiliates.
Total Quality Logistics (TQL), the nation’s second-largest freight broker, is under fire in a new federal lawsuit filed on February 25 in the United States District Court for the District of Columbia.
Pink Cheetah Express LLC, a small carrier based in Kissimmee, Florida, alleges that TQL has flouted a 2023 Department of Transportation order requiring compliance with federal broker transparency rules. The lawsuit, which seeks declaratory and injunctive relief, reignites a long-standing debate over rate transparency in the trucking industry, just as freight markets brace for new rates.
The complaint centers on TQL’s alleged refusal to provide Pink Cheetah with transaction records for 15 freight loads hauled over the past three years, despite a November 30, 2023, order from the Federal Motor Carrier Safety Administration. That order, issued after an investigation prompted by Pink Cheetah’s 2023 complaint, commanded TQL to drop contract language waiving carriers’ rights under 49 CFR 371.3, a regulation guaranteeing motor carriers’ access to broker records, and to comply with future transparency requests. Pink Cheetah claims TQL has done neither, accusing the Cincinnati-based broker of acting “arrogantly” “above the law.”
The backstory dates to January 18, 2023, when Pink Cheetah hauled a load of ice cream from Fort Wayne, Indiana, to Akron, Ohio, for TQL on the spot market. The rate confirmation set Pink Cheetah’s payment at $1,500, including a $300 stop-off fee. But when owner Dakota Springfields requested records to see what TQL charged the shipper, TQL refused, citing a 2019 broker-carrier agreement in which Pink Cheetah had waived its transparency rights. Springfields cried foul, arguing the waiver violated federal law. After the FMCSA intervened and forced TQL to hand over the records, they revealed that TQL had pocketed 44% of the shipper’s rate, far above the 14%-16% industry broker margin often cited.
That revelation fueled Pink Cheetah’s push for more records in December 2023, only to be denied again by TQL. The carrier alleges this defiance not only breaches the FMCSA order but also hampers its ability to seek further litigation against TQL. Now, Pink Cheetah wants the court to force TQL to release unredacted records for 14 additional loads, remove the waiver clause from all its contracts, and obey the FMCSA order industry-wide.
For TQL, the stakes are high. With over $9 billion in annual revenue and a reputation as a brokerage juggernaut, the company has yet to publicly respond to the lawsuit. Its deadline to answer is March 18.
As we await its response, the company’s past stance, rooted in contractual freedom, may face scrutiny.
Brokers have long argued that 49 USC 14101 (b) allows them to negotiate exemptions with carriers, but the recent FMCSA rulemaking and the extended period for comment may completely reject that notion, stating that brokers are not “shippers” with such freedom.
Let me be clear: this is one of the most significant lawsuits in freight brokerage and could affect tens of thousands of brokers in the United States like TQL, almost all brokers use similar transparency exemptions. While broker transparency has been an issue for decades, it has become a lightning rod in recent years.
Legal experts are divided. TQL would likely respond that the exemption is a valid private agreement or that Pink Cheetah’s damages are speculative. Either way, the case tests the muscle of FMCSA under 49 USC 14704, which allows carriers to sue to enforce point orders. Regardless of the outcome in the district court, appeals in this case are likely, which could further establish disagreements among the federal appellate courts.
As freight fraud is mapped and new tariffs, the 25% on imports from Canada and Mexico starting Tuesday, the timing could not be worse for TQL. For now, the industry watches this David-and-Goliath clash, wondering if Pink Cheetah’s roar will shake the broker-broker dynamics, or simply fade into the noise.
Matthew Leffler is an expert in the trucking industry and an adjunct professor of law at Michigan State University College of Law. He can be contacted at [emailprotected]. Learn more from Leffler at the upcoming Small Fleet and Owner-Operator Summit on March 26.
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