Freight Brokers Face Tougher Carrier Vetting Demands After $604M C.H. Robinson Verdict
Shippers are increasingly demanding detailed carrier vetting disclosures from freight brokers before discussing rates, a shift driven by liability concerns following the C.H. Robinson vicarious liability verdict, according to Pivot Supply Chain Solutions CEO John Ferguson. C.H. Robinson was found 23% responsible for a $604 million verdict — a share nearly matching its $135 million insurance policy. Ferguson said plaintiffs' attorneys are now targeting all parties in the chain, including shippers and warehouse operators, citing amendments to Delilah's Law that explicitly include both. He advised brokers to describe drivers as "tracked by load," not by person, after jurors in the Robinson trial cited the company's "tracking the driver" app language in finding shared-employee status. Ferguson described the rate market as "very uncertain," with tender rejection rates near 14% and West Coast load-to-truck ratios recently overtaking the Northeast. Shippers are front-loading pickups Monday through Wednesday and pulling October volume into September, pointing to a slowdown in early October.