TIA (Transportation Intermediaries Association) Conference and Expo

Transportation Intermediaries Association has decided to try something new. From April 9th to the 12th they will host their very first Great Ideas Conference and Exposition. The Expo will take place in Tucson, AZ at the JW Marriott Tucson Starr Pass Resort and Spa.

This ground breaking conference is slated to focus on the great ideas brokers and 3PLs needed to succeed. The first session will host five speakers. Each one comes from within the Association's own ranks. They plan to give short uplifting speeches to get the audience started. From there, participants can go through 16 educational sessions in 4 tracks covering 4 essential areas. These sessions will include fundamental, universal, expansion, and advanced learning.

Participants can mix and match any sessions to create a unique learning experience best suited to each individual need or desire. There are 6 general sessions that will be spread out through the trade show and education sessions with the purpose of furthering insight and knowledge base of all the industry.

 Third party logistics is a $162 billion dollar ever growing industry. The Transportation Intermediaries Association is the foremost supporting professional organization in this industry. The hope that the success of this conference and exposition will keep their market moving ever forward into the future.

Today's market is filled with a constant flux in rules and regulations that steadily affect day to day operations. Knowledge is the edge every business person needs to keep up with the changing times and the TIA wants to help everyone do just that.

We will be in attendance and look forward to seeing you all there!

Cargo Liability Insruance: Should Shipper's Share Liability with Railways

When it comes to Cargo Liability Insurance, North America's rail system is in a quandary.

Firstly, railroad operators are not allowed to refuse any cargo, no matter how hazardous it may be, as long as appropriate regulations are met. Secondly, current legislation deems railways liable for all damages incurred in any railroad mishap and up to an unlimited amount, even if the mishap did not occur due to railroad negligence. This is different from marine and air carriers who may limit their liability as a condition of carriage.

Backed by the Association of American Railroads (AAR), these rules have been under review since a disastrous accident in Quebec, Canada, last July forced a small railroad to file bankruptcy. 

Sixty-three (63) tank cars containing crude oil derailed in Quebec last July. Forty-two people died and the town center was destroyed. Reparations, including clean-up and compensation for death, injury, and property damage, will cost hundreds of millions of dollars. The small railroad, Montreal, Maine & Atlantic, had liability insurance of only $25 million. Overwhelmed by the costs of the accident, the company filed for bankruptcy a month later. 

Some believe the minimum amout of cargo liability insurance required by railways should be raised. This requirement alone may put some small railroads out of business. Others, like the AAR, insist that there simply is not enough coverage possible to adequately address catastrophic events like that in Quebec.

Other measures are taken when shipping hazardous cargo by rail. Trains carrying dangerous materials are designated as "key trains" and held to speed restrictions, prioritized over all other trains on the network, and are routed away from heavily populated areas when possible.

Railroad advocates insist the best solution is shared liability between shipper and railway as a condition of carriage. Such an arrangement will boost coverage in the event of an accident. Some claim it may also motivate shipping companies to take better safety precautions when preparing materials for shipment.

Hazmat shippers disagree, citing their rail transportation rates were already increased in order to compensate for risks. Shippers also claim that keeping liability assigned to railroads maintains higher standards for safety and accountability.

FMCSA (Federal Motor Carrier Safety Administration) Now Has Authority to Shut Down Noncompliant Carriers

Beginning February 21, 2014, the FMCSA (Federal Motor Carrier Safety Administration) will have the power to shut down any carrier with a demonstrated pattern of egregious noncompliance with federal safety rules.

Under the new rule, the FMCSA may suspend or revoke the operating authority of carriers who repeatedly violate safety regulations. It is also designed to better facilitate identification of chameleon or reincarnated carriers, who operate multiple entities in order to hide a failure to comply with federal safety regulations.

Notice of the proposed rule was first published in November 2012, and FMCSA welcomed public comment for 60 days. Many in the industry voiced concern that the pattern of noncompliance was not clearly defined. FMCSA responded that each organization called into question would be considered on a case-by-case basis. Furthermore, enforcement of the new rule was best performed with room for discussion and discretion.

The agency best defines "egregious" acts of noncompliance as more than simple negligence. Instead, the full text reads: "a willful, and possibly repeated, attempt to avoid compliance or shield noncompliance."

If a carrier is found to be in habitual noncompliance, the FMCSA will give notice to the carrier of potential consequences. The carrier then has the opportunity to respond and rectify the situation. 

The intention of the new rule, as the agency explains, is to target high-risk carriers and better insure the safety of travelers. 

The new rules comply with the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) and the Moving Ahead for Progress in the 21st Century Act (MAP-21). 

For the full text of the rule and to read industry comments and agency responses, visit the Federal Register: Patterns of Safety Violations by Motor Carrier Management.