For shippers in the food industry that leverage third-party logistics providers (3PLs) and truck brokers, the ruling sends a clear message: carrier selection practices are now under much greater legal scrutiny.

The U.S. Supreme Court's recent decision in Montgomery v. Caribe Transport II, LLC has sent ripples throughout the transportation industry. In a unanimous decision, the Supreme Court held that state-law negligent hiring claims against freight brokers are not preempted by federal law when safety is at issue. The ruling allows injured parties to pursue claims alleging that a broker failed to exercise reasonable care when selecting a motor carrier.

“Truck brokers, 3PLs and shippers were speculating about the potential ramifications of this Supreme Court ruling at the Transportation Intermediaries Association’s annual conference in mid-April in Phoenix,” says Brian Everett, Group Publisher and Editorial Director of Food Chain Digest, the official magazine of Food Shippers of America (FSA) who attended. “Industry leaders were talking about how the ruling would directly address freight broker liability, but how it also could serve as a warning to food shippers about the growing legal scrutiny surrounding carrier selection and transportation oversight.”

Truck Brokers, 3PLs Respond Following the Supreme Court’s Decision

TIA immediately issued this response following the Supreme Court’s ruling:
We are deeply disappointed with the decision as the law and legal precedent for decades has given the federal government, not states, the responsibility for setting safety standards for motor carriers. To date, carriers, not brokers, have been responsible for complying with these standards.

While brokers are fully committed to safety and to working with federally licensed motor carriers in good standing, the decision imposes an impossible task on brokers — effectively asking them to evaluate the safety of a given motor carrier despite having been deemed safe to operate on public roads by the federal government. This is like asking travel agents to evaluate the safety of a given airline despite the fact that the airline has been licensed to fly by the federal government. Moreover, since brokers do not employ motor carrier drivers directly, they do not have access to the records and data required to perform the safety functions that plaintiff lawyers contend they must. We are working with our members to assess potential next steps to mitigate the consequences of the Supreme Court’s decision.

In the meantime, our members will continue to vigorously defend against negligent selection claims as plaintiffs still must meet applicable legal standards, such as proving causation and proving that individual brokers did not meet a supposed standard of care in each case.

View the full ruling here

What’s the Risk to Food Shippers?

Although the decision does not specifically expand shipper liability, legal experts and transportation and supply chain industry observers note that plaintiffs' attorneys may increasingly examine the role of all parties involved in carrier selection, including shippers that directly hire motor carriers. Many suggest that organizations that rely on truck brokers and third-party logistics companies (3PLs) should expect greater scrutiny of their due diligence practices, carrier vetting procedures, and documentation.

For food shippers, the primary risk is not necessarily new liability, but increased exposure to litigation and discovery. Carrier selection processes, FMCSA safety reviews, insurance requirements, and compliance records may become more important evidence in transportation-related lawsuits. Some are speculating that companies without the ability to demonstrate a consistent and documented vetting process could face greater legal challenges if a serious accident should occur.

The decision also highlights a broader trend for foods shippers: the function of transportation procurement is increasingly viewed as a risk management function rather than simply a cost-management exercise. As the Retail Industry Leaders Association (RILA) noted in a recent article on their blog following the ruling, choosing transportation partners is becoming a material business risk that requires ongoing oversight and transparency.

RILA recommends shippers should review transportation procurement practices, particularly if they rely at all on 3PLs, freight brokers, or spot-market freight. Key areas to evaluate include:

• Carrier vetting and onboarding procedures
• Safety score monitoring and documentation
• Insurance verification standards
• Written broker compliance requirements
• Audit trails showing due diligence in carrier selection, including FMCSA ratings
• Transportation contract language regarding carrier hiring and vetting
• Dock and driver/carrier check-in procedures

Industry observers have already noticed that some logistics service provider partners are already emphasizing enhanced carrier screening, including FMCSA safety reviews, active authority checks, and ongoing monitoring programs.

While the broader impact of the decision is still coming into focus, there’s no question that the decision will have an impact on the transportation and supply chain industry’s practices. In fact, the ruling reinforces a broader trend in supply chain management: legal accountability increasingly follows operational decision-making. Choosing transportation partners is no longer viewed solely as a procurement function — it is now a material risk-management issue.

For shippers navigating tight delivery windows and ongoing transportation volatility will be wise to place continuous, focused transparency and ensure close engagement with logistics service providers. Shippers are already reviewing carrier qualification standards, 3PL/broker oversight practices, contractual protections, and insurance requirements. While this case may not have directly targeted food shippers, it reinforces the importance of safety and compliance as key considerations when selecting providers.

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