Carrier Selection Under Scrutiny After Supreme Court Ruling

The U.S. Supreme Court’s recent Montgomery v. Caribe Transport II ruling has raised the stakes for freight brokers, emphasizing the need for formalized vetting practices and strong record-keeping. The decision, which held that negligent-hiring claims against brokers are not pre-empted, expands liability nationwide and may drive inconsistent requirements across jurisdictions. Industry executives say the ruling largely formalizes existing practices, but the lack of a national standard could lead to differing expectations and pressure on brokers to overcorrect. Brokers are expected to tighten documentation, conduct more frequent carrier and driver evaluations, and potentially favor asset-based carriers or partners with demonstrable safety processes. The Transportation Intermediaries Association has asked the Federal Motor Carrier Safety Administration to clarify which standards brokers should use when selecting carriers, and supports stronger safety oversight, better data, and more effective enforcement. With about 90% of carriers unrated by FMCSA, brokers are turning to outside technology tools to fill the gaps and assess carrier risk. The ruling is expected to make existing practices more formal, consistent, and defensible, rather than introducing new operational responsibilities. However, the primary concern for brokers is the lack of a single national standard, which could lead to inconsistent expectations and pressure to overcorrect in ways that may not improve safety.