A Supreme Court ruling could hurt freight brokers and small trucking companies. Since June 2025, the Montgomery vs Caribe II Transport case has been pending before the Supreme Court. The case involves a truck driver who collided with a parked truck on a highway in 2017. Shawn Montgomery was severely injured by the accident and sued the driver, the carrier company, and associates. The carrier company is also a broker he sued for negligence in selecting a carrier. However, many freight brokers are warning that the final ruling could have major effects. The court is expected to make a final decision by the end of June 2026.
How Could The Supreme Court’s Ruling Could Hurt Freight Brokers?
Freight brokers would feel the impact depending on whether the FAAAA preempts state law governing brokers. The Federal Aviation Administration Authorization Act (FAAAA) is a federal law that prohibits states from enforcing laws governing carriers’ routes, rates, or services, or those of freight brokers. If the Supreme Court rules that federal law preempts state law, freight brokers will have greater legal protection. Brokers will face fewer litigation risks when hiring truckers, reducing the risk of lawsuits arising from negligent carrier hiring. In turn, this will reinforce the viewpoint that brokers are intermediaries and not responsible for the safety of trucking companies. The ruling that federal law overrides state law will also stabilize insurance costs.
If the opposite situation occurs and the ruling does not preempt the state law, it could be significant for brokers. The likelihood that freight brokers will face lawsuits arising from accidents involving contracted carriers may increase. This could result in a stronger carrier vetting process for brokers. A greater likelihood of lawsuits will also lead brokers to limit the carriers they work with. Brokers choosing well-known carriers over smaller ones could result in fewer trucking companies on the road. Fewer carriers could drive up rates for remaining truckers, which manufacturers, retailers, and customers will feel. Broker-carrier contracts may also have stricter requirements and have higher insurance premiums and compliance costs.
A1 Freight Solutions
When moving cargo domestically, various factors may affect the transport process. While news and regulations should not halt movement, it is essential to prepare beforehand. In addition to staying current with regulations, being prepared can be done by speaking with a freight broker. Brokers act as intermediaries between shippers and carriers, coordinating the movement of goods on behalf of the shipper. They also offer additional services, including documentation, rate negotiation, consultation, and more. Speak to our brokers at info@fsinc.com or 786-756-8795 for a quote to move your goods anywhere in the US. Along with FTL (full-truckload) and LTL (less-than-truckload) solutions, we offer drayage, heavy haul, expedited, temperature-controlled, and more.