Freight brokers and logistics operators face stricter federal enforcement after a court decision and White House order remove legal protections.
The US Supreme Court unanimously struck down a long-standing legal shield for freight brokers in *Montgomery v. Caribe Transport II* on May 22, 2026. The ruling eliminates protections relied on for decades, exposing operators to heightened liability risks in federal court.
Eleven days later, a White House Executive Order expanded compliance obligations across the logistics sector, targeting forced labor, misclassification, undervaluation, and illegal transshipment. The order grants criminal enforcement authority to federal prosecutors, escalating scrutiny on documentation and real-time proof of compliance.
Industry experts warn most operators lack the systems to meet the new standards, which require cryptographic verification at every handoff. The changes shift the burden from compliance to provable adherence, raising operational and legal risks for brokers, forwarders, and warehouse operators.