Nothing changes—the same trucks, drivers, office and systems, just using a different name. These chameleon carriers plague the industry because the FMCSA has been unable to address the root cause: It is easier to register a motor carrier and be granted authority than it is to buy an airline ticket. The trucking industry is currently facing the worst operating environment in history, and the flood of capacity is the primary cause. With operating costs up over 50% in the past decade (and rates flat), high-quality motor carriers are facing an extinction-level event.
The quality truckers could soon be replaced by the fraudulent chameleon carriers, which represent the worst of the trucking industry. To address these issues, it’s time for Congress to intervene with targeted reforms aimed at restoring financial stability, enhancing safety and bolstering security.
A key proposal: Permanently cap the number of for-hire motor carriers in the U.S. at 225,000.
This modest increase from the current 212,000 would prevent further flooding of the market with new entrants. The industry simply doesn’t need more trucking firms; unchecked growth has fueled overcapacity and driven down rates, making it unsustainable for legitimate operators.
Additionally, an approval process should be required for the transfer or sale of operating authority. This would verify that the acquiring entity meets rigorous safety, financial and insurance standards before taking control of a trucking company. Such measures could help curb the rise of “chameleon carriers”—unsafe operators that evade shutdowns by reopening under new names, often tripling accident risks and bypassing oversight. These reincarnated firms have been linked to 217 deaths and over 3,500 injuries in crashes from 2018 to 2023. While the FMCSA’s 2025 rules aim to phase out MC numbers to combat this, implementation delays have limited their impact.
Drawing inspiration from the airline industry, ownership rules must also be tightened: Non-U.S. citizens should be limited to owning no more than 25% of a for-hire motor carrier. Those seeking greater control would need to become American citizens or partner with a U.S. majority owner. This is critical, as foreign entities already control 10-15% of U.S. trucking, including operations tied to Serbian firms accused of faking logs and posing security threats.
Abuse of visas allows foreign truck drivers to haul domestic loads illegally, undercutting rates and displacing American jobs.
To be clear, this is not a call for an ICC-style regulatory framework, where every rate and lane had government oversight. The market should control the freight rates. This is how a market should operate. What is needed is for Congress to take the lead in ensuring the safety and qualifications of the industry. By restricting the operating authorities that are issued, it will place a market premium on those authorities. So rather than a chameleon carrier deciding it can commit a heinous act without repercussions, it will cherish its operating authority because it has real value, and doing something nefarious would destroy it.
Without these changes, the trucking sector will remain vulnerable to unqualified and unsafe carriers, many influenced by dubious foreign entities that undercut prices through risky practices. This not only erodes the viability of safe, compliant competitors but also heightens broader risks, including cargo theft surging to $1 billion in 2024. Sometimes, these firms use lease-purchase scams to trap drivers in debt.
Congress must act now to protect this vital industry. By implementing these reforms, we can foster a more stable, secure and equitable trucking landscape for all stakeholders.