“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 future of small carriers is uncertain as the legal landscape shifts, according to two top transportation attorneys. In the recent Supreme Court decision Montgomery v. Caribe Transport, the justices ruled that brokers have a duty to select carriers that operate safely. This ruling has major implications for small carriers, who are now facing more legal exposure and higher insurance rates due to the increased risk of lawsuits.

The attorneys argue that brokers are now using "reptile theory" to hold carriers accountable for all their shortcomings, not just the specific issue at hand. This means that small carriers must treat every aspect of their operations as if it is the most important, leading to increased costs and operational burdens. Additionally, the ruling has created formalized carrier selection policies that brokers must follow, making it harder for small carriers to qualify for freight.

The attorneys warn that larger carriers are already starting to absorb capacity from smaller operators, and the small carrier may soon find itself on the outside looking in.