Exposing the "Chameleon Carrier" Loophole in Trucking | Brake Check

Charles Gracey (0:00)

This episode is brought to you by Nordstrom.

SPEAKER_2 (0:03)

For 125 years, Nordstrom has been part of your story. The stylist who found the perfect outfit for your big interview. The first pair of walking shoes for your one-year-old. The tomato soup you shared with your sister at the cafe.

Charles Gracey (0:15)

These are the moments that make Nordstrom, Nordstrom.

SPEAKER_2 (0:18)

Big or small, we're here for all of it. Celebrating 125 years with new moments still ahead. Discover it all in Nordstrom stores and at nordstrom.com.

Charles Gracey (0:30)

Welcome back to The Loading Zone.

SPEAKER_2 (0:31)

Today's deep thought, trucks have big wheels.

Charles Gracey (0:56)

Welcome to Brake Check, right here on FreightWaves TV. I'm Charles Gracey. And hey, we're working out some technical difficulties, but while we're working on that, I want to show you something new that we are bringing out in light of today's episode. We have the Chameleon Carrier Starter Kit. And why is this important? Well, for the very low entry cost of your dignity, highway safety and about $300, you can get your very own Chameleon Carrier Starter Kit. And why is that important? Well, you put in a little bit of work, no sweat equity, and now you're being challenged by accountability. Well, hey, keep your same trucks, keep your same crappy practices and drivers, get a new DOT number.

You can get a bogus ELD discount that has backdoor access to all your freight data and exploiting your workforce. And hey, maybe you want to know all the rules you're breaking. Maybe you don't, but there's an Fmcsa rule book in there just in case. Don't need that.

Also, if you want to kick it old school, you get one, but two pieces of white paper, some tape, and a Sharpie. So you can kick it back in that nostalgia days of taping it on there and challenging DOT and giving a big old finger to the man. That is what we're talking about today. The fact that all it takes is this, to change your identity and dodge accountability.

That's the problem. That's what chameleon carriers are doing. And that is the topic today. Now, we're going to be working on a couple of different things. But before we do, and before the tech guys help me out getting sound from my guests, we're going to turn around and talk a little bit about what's happening out there. Because when you're looking at carriers out there playing by the rules, when you're looking at carriers out there trying to make ends meet, well, you have to talk about the ones out there not playing by the rules, the ones that are changing their names to avoid the rules. That's what Chameleon Carriers are doing. And Rob Carpenter brought up a really good article on this that he put up on FreightWaves. And it broke it down real simple. This isn't random. It's a business model. Authority is cheap. Equipment is leased. Labor is exploitable and replaceable. And insurance is often an instant gratification issue. You get it right away. The entire structure is designed to keep the carrier's risk low and cash flow high. Growth? Well, it is no longer about ambition. It's math. And more trucks mean more deductions.

And that is exactly what we're looking at here.

And that is what we're trying to focus on when we're talking about the chameleon carriers. More trucks mean more deductions from the drivers. More drivers mean more fees.

More fees mean more money. And having more authorities to operate under allow you to dodge enforcement efforts. More entities mean more layers between regulators and tracking that money. The risk doesn't disappear. It just gets buried in layers in paperwork. And it gets passed on to the drivers, the insurers, the general public. That is the risk of the chameleon carriers. And that is what we're talking about today. I am excited to bring in Lewie Pugh, our EVP from Ooida, who is very passionate about drivers, but also passionate about the industry. How are you doing today, Lewie?

Lewie Pugh (4:31)

I'm great. How are you, my friend?

Charles Gracey (4:33)

Well, we got through the technical difficulties. It wouldn't be a live show without some of that. And the boiler room boys got me set up where I can hear you. Otherwise, I was going to practice mouth and lip reading.

I probably understand things better than the Fmcsa at times.

Lewie Pugh (4:49)

Yes, I think we definitely do. But I understand I had an interview earlier this morning and had some technical difficulties. So I got to say, you look very dapper today with your hat and coat and stuff.