compliance

Recent Supreme Court ruling emphasizes need for carrier evaluation criteria

By Katharine Mohn

View this article as a Prezi: https://prezi.com/view/OzvnCLB2LNAJJf3rux93/?referral_token=8Ex429lnB3FN 

While many trucking companies parked their trucks last week due to the 2026 CVSA International Roadcheck (a.k.a. DOT Blitz Week) – a short-term fix to avoid potential violations, the Supreme Court ruled last Thursday on a case that will have a longer-lasting impact on our industry.

In Montgomery vs. Caribe Transport II, the Supreme Court was unanimous in determining that “brokers are subject to tort action in a state court for incidents involving carriers they hired,” according to FreightWaves. Essentially, 3PLs can be sued in state court for damages resulting from a crash involving a carrier the broker hired.

What does this ruling mean for 3PLs?

Many speculate that the larger brokerages have “resources to better handle any insurance premiums… more tools to vet carriers… and are in the best position to prove the old adage that regulation is great for large incumbents and an absolute barrier to entry for smaller players,” according to FreightWaves.

Others speculate that a measurable broker standard of care will be implemented. Many brokerages, like Jetco Logistics, have leveraged its team, technology and tools, and internal processes and procedures to raise the bar in their carrier selection processes.

Others, though, have yet to evolve beyond checking FMCSA authority and insurance. That will have to change in an era where access to more and more data becomes increasingly available and accessible.

What does the Supreme Court decision mean for Jetco, its clients, and our third-party carriers?

Last month, 60 Minutes released a segment about bad operators racking up safety violations and evading enforcement by dissolving bad records, operating under new names and swapping out company information on truck cabs with magnets.

Then, this past week, while Jetco ran as usual, many carriers opted not to avoid potential violations. In fact, Jetco had all clean inspections during the 2026 DOT Blitz Week.

The recent headlines and crackdowns have highlighted what Jetco has known and done all along: holding ourselves and our third-party carriers to safety standards that are well above the regulatory standards.

It goes back to our safety culture, which we’ve built over time through continued investments in compliance, training, technology, strong third-party carrier relationships and strict hiring criteria that includes ensuring solid culture fits. We know what it takes to provide safe, reliable service to protect our clients’ freight and maintain an excellent safety record and reputation.

For our asset-backed brokerage Jetco Logistics, we don’t just select the first and/or cheapest third-party carrier that contacts us, and we don’t simply post loads to online boards and use the first carrier who offers to cover it. We pre-qualify the carriers:

  • We ensure carriers have been in business for at least one year
  • We monitor our carriers via Carrier 411 and RMIS Carrier Directory
  • We ensure carriers have the right equipment for the load and have prior experience with the lanes
  • We require carriers to have minimum $100,000 cargo insurance and minimum $1 million liability insurance from respected insurance carriers that will fulfill their obligations when needed
  • We can secure additional cargo insurance on top of our carriers for up to $2 million and more when needed
  • We select carriers who share our values and understand the importance of upfront, clear communication

Jetco clients can trust that we do our due diligence, maintain open lines of communication, and don’t view them as just another number. We’re committed to white-glove service that builds long-term, successful relationships. 

Published May 18, 2026

Recently Published Resources