Why trucking businesses dodge FMCSA rules
Prax told WFAA that these carriers often use virtual addresses or P.O. boxes to avoid regulators’ scrutiny.
He detailed his company’s investigation into one address in California that had nearly 700 trucking companies registered to that location. Prax said there’s a sign out front that says, “No Trucks Allowed.”
Federal records also show that about 500 of the companies listed at this address use the same phone number and email. When WFAA reporters phoned, they found the number always went to a voicemail system that asked for a code, and they were unable to leave a message at all. Prax said that he flagged this to federal regulators two years ago, but nothing appears to have happened since then.
The FMCSA said in a statement to the news station that it was “familiar with complaints related to the Signal Hill ... address.”
“If we all know about it, and we reported it, why is something not being done?” Prax said.
“The Agency has confirmed that the address is a legitimate business address for a motor carrier consultant who represents many small motor carriers based in California,” the FMCSA statement said.
However, this is in contradiction to their own rules: “A motor carrier may not designate the office of a consultant ... as the motor carrier's principal place of business if the motor carrier is not engaged in operations related to the transportation of persons or property at that location.”
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Find low rates nowThe scope of the problem
Prax told WFFA that in 2023, he caught a massive surge in carriers registering with either a virtual address or P.O. box.
“We built the robot to kind of find those, and we would notify FMCSA that says, ‘hey, this guy should not be issued his authority,’” he said.
Prax found as many as 200 registrants per month with these types of illegal addresses, and reported them to the FMCSA. Prax said the agency did flag those applications and issue warning letters, but he feels it wasn’t enough.
The issue is certainly on the minds of the leadership within the FMCSA, however. WFFA reports that on an industry podcast last year, Director of FMCSA Registration Ken Riddle said, “How do we prevent bad actors from getting into the system? ... How do we prevent them from falsifying registration?”
The current solution is facial recognition technology, designed to verify new applicants to the FMCSA. However, it’s only a requirement for new applicants right now.
“From a registration perspective, we want to be able to verify the identity of the individual registering,” Riddle said.
Prax says it’s not enough.
“We don't need to know who's behind the webcam. We need to know who's behind the operation of that company.”
A growing industry
Prax’s regulatory concerns may just be the tip of the iceberg for an industry that requires federal oversight. The FMCSA is responsible for a number of safety and licensing programs for commercial drivers. These include a program to record all drug and alcohol violations by drivers, so that new employers can screen potential employees.
They also offer hazardous materials regulation training to ensure the safe transport of dangerous products, and have established national standards for testing, licensing and disqualifying commercial drivers who fail to meet the required training and licensing protocols.
Companies unwilling to comply with business practices like registering a proper address with the FMCSA may also be lax about maintaining standards and education for drivers.
With the FMCSA reporting a 43% projected increase in truck freight in the country between 2012 and 2040, on top of the existing 5 million commercial drivers already registered, strict protocols for the industry helps to keep American roads safe.
The National Safety Council reports that in 2023, 5,375 large trucks were involved in a fatal crash. This represents an 8.4% decrease from 2022 — but is part of a larger trend of increasing fatalities, with a 43% increase reported in the last 10 years.
If driver and safety records aren’t properly checked, the consequences may lead to worse outcomes for drivers and their families.
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