“This May Not Be the Right Time to Jump Into the Small Carrier Market.” Two Top Transportation Attorneys on Whether the Small Carrier Has a Future.

The Supreme Court's Montgomery decision has created uncertainty in the small carrier market, according to two top transportation attorneys. Brian Nelson, a partner at Taylor Nelson Slattery Bernard, explained how the ruling has made brokers more cautious when selecting carriers, as they can no longer dismiss negligent selection lawsuits early. This change has led to higher insurance rates for brokers, as they now face the full cost of defense in legal battles.

Feary, president and managing partner of Scopelitis, took it a step further, stating that the outcome is already evident. He believes that Montgomery is quietly leading small carriers toward extinction as independent businesses and toward larger carriers. Nelson emphasized that carriers must now take a holistic approach, ensuring they are excellent at everything, not just four key areas, while Feary noted that the ruling has resulted in formalized carrier selection policies that vary between brokers, creating additional burdens for small carriers.

The attorneys also pointed out the structural unfairness in the system, as brokers can easily start anew after a judgment, while carriers cannot. Finally, they discussed the shrinking fleet of small carriers, which has been declining steadily over the past few years, indicating a bleak future for independent operators in the small carrier market.