By Matthew Leffler
The views expressed here are solely those of the author and do not necessarily represent the views 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 Feb. 25 in the U.S. District Court for the District of Columbia.
Pink Cheetah Express LLC, a small Kissimmee, Florida-based motor carrier, alleges that TQL has flouted a 2023 Department of Transportation order mandating compliance with federal broker transparency rules. The suit, which seeks declaratory and injunctive relief, reignites a long-simmering debate over rate transparency in the trucking industry – just as freight markets brace for new tariffs.
The complaint centers on TQL’s alleged refusal to provide Pink Cheetah with transactional records for 15 loads hauled over the past three years, despite a Nov. 30, 2023, order from the Federal Motor Carrier Safety Administration. That order, issued after an investigation sparked by Pink Cheetah’s 2023 complaint, directed TQL to ditch contract language waiving carriers’ rights under 49 CFR 371.3 – a regulation guaranteeing carriers access to broker records – and to comply with future transparency requests. Pink Cheetah claims TQL has done neither, accusing the Cincinnati-based brokerage of “arrogantly” acting “above the law.”
The backstory traces back to Jan. 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 pegged Pink Cheetah’s pay at $1,500, including a $300 layover 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 FMCSA stepped in and forced TQL to hand over the records, they revealed TQL had pocketed 44% of the shipper’s rate, well above the industry’s oft-cited 14%-16% broker margin average.
That revelation fueled Pink Cheetah’s push for more records in December 2023, only to be rebuffed again by TQL. The carrier alleges this defiance not only breaches the FMCSA order but also harms its ability to pursue further litigation against TQL. Now, Pink Cheetah wants the court to compel TQL to release unredacted records for 14 additional loads, strip the waiver clause from all its contracts and obey the FMCSA order industrywide.
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 suit. Its deadline to respond is March 18.
As we brace for the response, the company’s past stance – rooted in contractual freedom – may face scrutiny. Brokers have long argued that 49 USC 14101(b) lets them negotiate waivers with carriers, but FMCSA’s recent rulemaking and extended period to comment may reject that notion entirely, affirming brokers aren’t “shippers” with such latitude.
Let me be clear: This is among the most important lawsuits in freight brokerage and could impact tens of thousands of brokers in the U.S. Like TQL, nearly every broker utilizes similar transparency waivers. While broker transparency has been an issue for decades, it has become a lightning rod in recent years.
Legal experts are split. TQL is likely to counter that the waiver is a valid private agreement or that Pink Cheetah’s damages are speculative. Either way, the case tests FMCSA’s muscle under 49 USC 14704, which lets carriers sue to enforce DOT 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 spikes and new tariffs loom – 25% on imports from Canada and Mexico starting Tuesday – the timing couldn’t be worse for TQL. For now, the industry watches this David-and-Goliath clash, wondering if Pink Cheetah’s roar will shake up broker-carrier dynamics – or just fade into the noise.
Matthew Leffler is a trucking industry expert and an adjunct professor of law at Michigan State University College of Law. He can be reached at [email protected]. Learn more from Leffler at FreightWaves’ upcoming Small Fleet & Owner-Operator Summit on March 26.
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