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.

FMCSA (Federal Motor Carrier Safety Administration): Safety Rules Coming in 2014

The trucking industry is expecting finalization for two major safety rules early in 2014: 1) mandated electronic logs (e-logs); and 2) a searchable database with driver drug and alcohol tests. A third is on-tap for later in the year: carrier safety fitness.

Mandated E-Logs

A great deal of controversy has surrounded the issue of e-logs--also referred to as electronic onboard recorders. Many drivers reference similar devices in the past as avenues for coercion, describing log boxes that beep every hour and require input during delays and sleeper berth time. Many consider the harassment responsible for driver sleep deprivation and therefore detrimental to highway safety.

The FMCSA (Federal Motor Carrier Safety Administration) conducted lengthy surveys regarding the potential for coercion and possible measures to protect against it. Survey results are being used to develop a coercion plan. This plan will be publicized via a Notice of Proposed Rulemaking early 2014 and then opened for public feedback.

Searchable Database for Alcohol and Drug Tests

This proposal will require employers to report all positive test results and refusals to a clearinghouse. A prospective employer may--with the applicant's permission--access the database for individual records.

The database would be maintained by a third party, and records would come with rigorous privacy measures. Any driver testing positive would be required to complete a return-to-duty process and that would be reflected in the database.

Although employers would pay a fee to access the clearinghouse, drivers would be able to access their own records for free. Dispute and appeal procedures will be part of the final rule.

As with mandated e-logs, the final rule will be posted by notice and then opened for commentary.

Later in 2014...

A third major safety proposal is not expected to reach notice until later in 2014: standards for carrier safety fitness. As part of the Compliance, Safety, Accountability (CSA) Program, data in the Behavioral Analysis and Safety Improvement Categories will be used to determine whether or not a carrier is fit to operate.

Is The Carmack Amendment Relevant In International Shipments?

International shipments are common in today’s global market with the result that it has become common for product shipment to cross borders to reach the consumer.  The distance and necessity for using different modes of transportation can lead to an increased risk for damaging accidents.

The Carmack Amendment provide a well-established procedure for handling such incidents that happen on interstate trucking shipments in the United States.  However, when an accident occurs in the domestic portion of an international shipment the applicability of the Carmack Amendment is a work in progress.

Currently the Carmack Amendment provides a  standardized national scheme of liability and damages for interstate rail and motor carriers in order to give certainty to both shippers and carriers.  One objective of the amendment is to relieve cargo owners of the onus of discovering which is the offending carrier among what is often a myriad of carriers involved in the interstate shipment of goods.

What is at question is whether the Carmack Amendment applies to multi-transit domestic segments of an international shipment which is covered by one contract such as a bill lading.

In a recent court case, Kawasaki Kisen Kaisha Ltd versus Regal-Beloit Corporation, the Supreme Court ruled that the Carmack Amendment does not apply to the domestic portion of a shipment that originated overseas under a single bill of lading.  Under the Carmack rules only the receiving carrier is required to issue a Carmack compliant bill of lading.  The receiving carrier as defined by Carmack is only the carrier who accepts the shipment at its point of origin. In the Kawasaki case the carrier, Kawaski received the cargo under a through bill of lading that covered the shipment to an inland location in the US and there was no rail carrier who was required to issue a bill of lading under Carmack. 

This Supreme Court decision thus limited Carmack application in international shipments.  However,  it left to open whether the Carmack Amendment applies when the goods intended for export are received in the US and whether it applies in instances involving a freight forwarder or other intermediaries.

More recent lower court rulings appear to expand the direction of the Kawasaki  Court Case with their conclusions that other bodies of law or contracts apply in the domestic portion of international shipments.  This trend of limiting application of the Carmack Amendment in the domestic portion of the international shipment provides strategies for carriers to avoid Carmack liability when drawing up contracts and in litigation.

Cargo Insurance Considerations

When shipping supplies to your firm or products to customers, safety comes first. You want to ensure that you do not incur any losses owing to damage of the package in transit. As such, cargo liability insurancebecomes vital.

Although many business owners do not understand the growing business in ship transport, they applaud the introduction of shipping insurance. As Forbes puts it, “The cargo shipping business is highly cyclical, a fact that many ship owners have not seemed to have grasped.” Regardless of this, many acknowledge the purpose of shipment insurance. This coverage has seen many be compensated by the insurance firms due to the damages caused on their goods.

Given the importance of cargo insurance, it pays to trust only the best company with your package. The insurance firm you pick for the purpose has to meet the standards needed for cargo insurance services. This is in regards to insurance premium, rates of insurance and the services offered among other factors. Before you select any insurance company, see to it that you look at its history, reputation and the relation it has had with other clients.

The nature of your products also counts when it comes to cargo insurance. A firm may choose not to insure some products. Therefore, you have to ascertain that the products you have are included in the firm’s list of goods insured. The nature of the goods will also lead to the variation in costs, rates and other factors.

Consider exactly what the firm is offering you. Often, insurers will compensate for damages caused by any factor including third parties. This covers all scopes of damage. However, there are those that will compensate only against the factors that you stipulate. As such, you need to verify with the insurance firm what factors of damage they insure against.

Also, consider their claim policies. Will it take forever for a claim to be compensated? You have to ensure that the firm you are planning to buy the cargo insurance quote from has a favorable claim policy. Understand their special clauses, process and formalities involved when making a claim and such factors beforehand. This way, you are able to gauge whether the company is right for you.

The above are some of the parameters that you have to consider prior to selecting a cargo insurance firm. To learn more about cargo liability insurance, contact us.

The Federal Motor Carrier Safety Administration (FMCSA) has updated regulations of a 17-part final rule to comply with Map 21, the two-year highway funding schedule that went into effect last year. 

Updates to the FMCSA's MAP-21

Among the updates, those in the transportation industry will see higher maximum fines imposed against those who violate regulations. Another change allows the FMCSA to put an entire fleet out of service if it has not secured proper registration with the Department of Transportation (DOT). Previously, only individual trucks without DOT registration numbers were put out of order. A carrier still operating although its fleet has been suspended will see stiffer penalties. Some debate continues as to whether or not the agency would put a large fleet out of order for a single truck violation.

Also under the rule, the FMCSA must perform safety reviews on all new motor carriers within 12 months (instead of the previous 18-month window) of receiving operating authority. More stringent prohibitions against drivers operating trucks on suspended or revoked commercial driver licenses (CDL) will be enforced. 

The new rule implements several increases in maximum penalties for regulation violations. Among them:

• Violating requirements for reporting, record keeping, and registration rises from $500 to $1000.
• If the violation includes hazardous wastes, the fine rises from $20,000 to $40,000.
• Failure to respond to a subpoena jumps from $500 to $10,000.
• Violating out-of-service orders has been increased to $25,000.
• First offense of evasion of regulations jumps from $500 to $5,000. Fines for subsequent evasion violations raise from $500 to $2,000.
• Nonfatal hazmat transport violation fines rise from $50,000 to $75,000.
• If the hazmat transport violation involves a severe injury or substantial property destruction, the fine jumps from $100,000 to $175,000.

The new rule includes technical fixes that hold Canadian and Mexican carriers to the same regulations as U.S. carriers.

As a "nondiscretionary ministerial action," the FMCSA was able to implement the new rule without the standard notice of proposed rule making and public comment.

Government Shutdown Affects Maritime Academy

The government shutdown may end up delaying or even cancelling the careers of many midshipmen, sending a ripple effect through the maritime shipping industry.

Military academies are feeling the pain of the government shutdown, as commissaries are closed and even the Army and Navy football games cancelled. But they're still open for classes, albeit on a reduced schedule and with reduced services, as the Department of Defense considers them essential to national security.

But one Federal Service Academy is completely shut down because of the government shutdown: the US Merchant Marine Academy. The Merchant Marine trains sailors to serve in the civilian fleet, with options for serving in all branches of the military. Merchant Marine graduates end up in areas like shipping, dredging, and salvage, but have been activated to combat duty. Most notably, the Merchant Marine suffered the highest casualties in World War II, with upwards of 8,000 mariners KIA. 

Here's how the Merchant Marine Academy can be shut down: it's not part of the Department of Defense. The Merchant Marine is part of the Department of Transportation and thus, not considered to be "essential". So when the government shutdown came, the entire campus was shut down. Midshipmen are allowed to stay on campus for now, but basic services have been cut off. If the government shutdown continues for a prolonged period, the midshipmen may be sent home. 

The Academy has 720 midshipman, with a strict schedule to maintain. Some are scheduled to go to sea for training in November, but must meet their Academy requirements first. A long delay could jeopardize that. The Academy warns a shutdown of longer than a few days could jeopardize the Academy's accreditation. Mariners who are currently at sea will be allowed to continue to serve. But the Academy hasn't said what might happen if the shutdown lasts longer. 

How The New Freight Broker Bond Could Effect You

Effective October 1, 2013 there will be a new $75,000 broker bond required that is an increase being implemented by the Federal Motor Carrier Safety Administration from the previous requirement of a $10,000 bond. This will apply for all ICC Property Brokers and Freight Forwarders. To better understand what is happening with this, we need to review some of the opinions of how this action is regarded, and what is currently taking place by those who oppose this section of the act.

The Moving Ahead for Progress in the 21st Century Act includes a $75,000 Bond provision that is being opposed by several groups. According to an article from Logistics Management, the Association of Independent Property Brokers & Agents (AIPBA) has filed a federal lawsuit against the $75,000 bond, claiming that it could cause shippers' freight rates to rise. "The brokers say that bond provision is illegal and anti-competitive." There are several points being argued against this bond.

Without going into a lot of political bickering, it can be summed up best by stating that it is being argued that this particular section of MAP21 pertaining to the new bond limit is unconstitutional. Therefore, a Federal lawsuit has been filed by the Association of Independent Property Brokers & Agents (AIPBA). According to a statement made by AIPBA President James Lamb, “We are seeking justice through the federal court system for the various small business players in the trucking industry that would otherwise be adversely affected.." It is expected that the U.S. District Court will decide this section of MAP-21 is unconstitutional and will issue an injunction prior to October 1.

In the meantime, talk to an expert to understand how this will directly affect you and your business. There are surety programs available for all sized Property Broker and Freight Forwarder companies. Filing a new bond from BMC-84 to replace the existing form will satisfy the requirement. And, keep in mind that the $75,000 bond is required for any Property Brokers that previously had the $10,000 bond as well as Freight Forwarders who are now also included under the new law.

The FMCSA (Federal Motor Carrier Safety Administration) Rejects Sand and Water HOS Requests for Exemption & Considers Livestock and Military Requests

The Hours of Service (HOS) of Drivers Final Rule went into effect February 27, 2012. Compliance date for all provisions was July 1, 2013. New regulations include mandatory home terminal time, 30-minute rest breaks, waiting time, and new distinctions between off-duty and on-duty hours. Since its publication in the Federal Register, the FMCSA (Federal Motor Carrier Safety Administration) has fielded petitions and requests for elaboration and exception.

Sand and Water HOS Exemptions Rejected Specialty truckers at oil- and gas-drilling operations are exempt from on-duty waiting time. The hours spent waiting at well sites may be recorded as "off-duty," thereby pausing the 14-hour maximum drive time. However, per an August 12 notice, FMCSA rejected a request to extend the same exemption to truck drivers carrying sand and water.
Critics of this decision feel truck drivers in the oil and gas industry are unnecessarily limited by confusing regulations. Others feel it's a double standard. One suggestion, proposed by the American Trucking Association (ATA), is to base the off-duty exception on whether or not the driver had the opportunity to rest while waiting at the well site and not just based on what the driver was hauling.

Livestock and Military Rest Break Exemptions Being Considered
Federal regulators are still considering exemptions to the 30-minute rest break requirement for drivers carrying live animals or sensitive U.S. military cargo.
Pointing toward the potential for harm to animals, drivers hauling livestock would not be required to take breaks at all. The National Pork Producers Council (NPPC) was granted such an exemption in July. However, that exemption expires September 9, 2013.

Advocates of the U.S. military cargo exemption state that continuous surveillance of sensitive military shipments are required. If the petition is granted, drivers would be allowed to watch their loads during breaks if they are a part of a two-driver team.

In both cases, the FMCSA may grant 90-day waivers until carriers can establish levels of safety similar to the original regulations. Longer-term exemptions may last up to two years and are then up for renewal if petitioning groups request a new exemption.

Court Says "US-Mexico Cross Border Trucking Program Will Live On!"

Despite appeals and lawsuits filed in June from the Owner-Operator Independent Drivers Association (OOIDA) and the Teamsters union, the U.S.-Mexico Cross Border Trucking Pilot Program will live on, says the U.S. Court of Appeals on July 26.

The long-haul trucking pilot program, overseen by the FMCSA (Federal Motor Carrier Safety Administration), was announced as part of the North American Free Trade Agreement (NAFTA) cross-border long-haul trucking provisions. Its stated aim is to test and demonstrate the ability of Mexico-based motor carriers to operate safely in the United States.

This pilot program allows Mexico-based motor carriers to operate throughout the United States for up to 3 years. Likewise, U.S.-based motor carriers receive reciprocal rights to operate in Mexico for the same period.

OOIDA's and the Teamsters' protests against the cross-border trucking program started as early as 2007 under a pilot program initiated by the Bush administration. Arguments continued in 2011 with the Obama administration's successor program. Complaints center primarily around questions of safety provisions: OOIDA and the Teamsters allege inconsistencies in requirements for physical examinations of drivers, licensing requirements, and drug testing. Specifically, protesters claim that U.S. truck drivers are held to increasingly rigorous standards for safety--standards not enforced in Mexican trucking programs. OOIDA purports that the pilot program gives Mexico's truckers an exemption from safety regulations and therefore creates a hazard on U.S. highways. Another claim rejected by the courts stated that the FMCSA program was too small to be scientifically valid.

Advocates of the program may point toward the explosion of trade between U.S. and Mexico as reason to continue. Total cross-border freight by train and truck surged almost 35 percent from 2007 to 2012, according to U.S. government data. Others, however, may cite data from the Bureau of Transportation Statistics and suggest the surge may have little to do with the pilot program. For instance, the Journal of Commerce (JOC), recently reported that of the more than 5.1 million border crossings in 2012, only 1,046 were completed under the pilot project.

The FMCSA To Cut $1.7 Billion in Costs From Paperwork Reduction

Good news for the trucking industry. U.S. Transportation Secretary Anthony Foxx announced on August 1, plans to reduce daily paperwork burdens on professional truck drivers thereby saving the industry an estimated $1.7 billion annually. Cost reductions will come after a change to requirements for daily Driver Vehicle Inspection Reports (DVIRs). Professional truck drivers will no longer be required to complete DVIRs unless a defect or deficiency is discovered.

Office of Management and Budget Director Sylvia Mathews Burwell declared this measure a significant step forward in the Obama Administration's May 2012 Executive Order to reduce regulatory burdens on the private sector. As quoted in the announcement posted by FMCSA (Federal Motor Carrier Safety Administration), Burwell applauded this change as a commonsense measure. "...the Department of Transportation is dramatically reducing paperwork burdens on the trucking industry, while continuing to protect public safety."
Currently, commercial truck drivers are required to conduct pre- and post-trip equipment inspections and file DVIRs after each inspection. Drivers must do so regardless of whether or not a problem is discovered. Internal studies indicated that only 5 percent of reports filed include issues. The DVIR process was assessed as the 19th most burdensome paperwork requirement, based on the number of hours needed to comply. The new proposal announced by Foxx will continue to require pre- and post-trip inspections. However, drivers will only be required to complete a DVIR if problems are identified.

Unchanged is the federal requirement for thorough annual safety inspections of all commercial vehicles in the U.S. Additionally, state and federal inspectors will continue to spot-check commercial vehicles randomly at terminals, weigh stations, truck stops, and at end points. Vehicles deemed problematic after inspections will continue to be removed from service until all noted safety problems are resolved.

The FMCSA Continues to Become More Efficent in Driver Compliance

Good news for the trucking industry. U.S. Transportation Secretary Anthony Foxx announced on August 1, plans to reduce daily paperwork burdens on professional truck drivers thereby saving the industry an estimated $1.7 billion annually. Cost reductions will come after a change to requirements for daily Driver Vehicle Inspection Reports (DVIRs). Professional truck drivers will no longer be required to complete DVIRs unless a defect or deficiency is discovered.

Office of Management and Budget Director Sylvia Mathews Burwell declared this measure a significant step forward in the Obama Administration's May 2012 Executive Order to reduce regulatory burdens on the private sector. As quoted in the announcement posted by FMCSA (Federal Motor Carrier Safety Administration), Burwell applauded this change as a commonsense measure. "...the Department of Transportation is dramatically reducing paperwork burdens on the trucking industry, while continuing to protect public safety." 

Currently, commercial truck drivers are required to conduct pre- and post-trip equipment inspections and file DVIRs after each inspection. Drivers must do so regardless of whether or not a problem is discovered. Internal studies indicated that only 5 percent of reports filed include issues. The DVIR process was assessed as the 19th most burdensome paperwork requirement, based on the number of hours needed to comply. The new proposal announced by Foxx will continue to require pre- and post-trip inspections. However, drivers will only be required to complete a DVIR if problems are identified.

Unchanged is the federal requirement for thorough annual safety inspections of all commercial vehicles in the U.S. Additionally, state and federal inspectors will continue to spot-check commercial vehicles randomly at terminals, weigh stations, truck stops, and at end points. Vehicles deemed problematic after inspections will continue to be removed from service until all noted safety problems are resolved. 

FMCSA Helps Veterans Move From Military to Civilian Life

More than 300,000 new jobs are expected in commercial trucking before 2020, according to the Bureau of Labor Statistics. On July 3, FMCSA (Federal Motor Carrier Safety Administration) announced almost $1 million in new grants to help train veterans and military families to fill these positions. 

The grants were awarded to six colleges across the country as part of the Commercial Motor Vehicle Operator Safety Training (CMVOST) grant program and could provide training for as many as 300 new commercial transportation students. The announcement was publicly applauded by the Disabled Veterans National Foundation as a smart way to keep veterans competitive in the job market.

Programs that aim to support military service men and women and their families may be inspired by federal initiatives such as the White House's Joining Forces. Joining Forces, announced by First Lady Michelle Obama and Dr. Jill Biden, in part provides employment and educational resources for veterans and their families. 

Some note that military personnel are naturally suited for the commercial transportation industry, as many service men and women have received training in operating heavy equipment and have fulfilled roles in managing supply chains within the military. With this understanding, initiatives such as the CMVOST's grant program are part of the commercial transportation industry's commitment to helping veterans and their families transition from military to civilian life. For example, in May 2011, FMCSA relaxed commercial learner permit rules to waive the skills test for individuals demonstrating at least two years of safe driving experience in military equivalents of commercial motor vehicles.

Transportation Intermediaries Association (TIA) launched its own Veteran Initiative in March of this year. TIA, partnering with the U.S. Chamber of Commerce, Paralyzed Veterans of America, and Troops to Transportation Logistics (T2TL) seek to connect returning and disabled veterans with TIA members who are looking to hire. The program has been successful. By June, TIA noted that over 350 veterans had been identified as qualified candidates for positions at over 60 TIA companies.

Tips for FMCSA Registration and Compliance 

Motor carriers face a variety of regulations that they must follow based on many aspects. The FMCSA (Federal Motor Carrier Safety Administration) requires different types of licenses and insurances for motor carriers. The system can easily become complicated, especially if you are unsure about what motor carrier classification you are under. In addition, freight brokers face different requirements than common or contract carriers. Here are some starting tips that every motor carrier business should be aware of.

Do I Need a USDOT Number?

The answer to this question is almost always yes. The minor exception to this rule is if a motor carrier has non-hazardous material and both the vehicle and cargo never leave the state they are registered in. However, many states have additional programs that require a USDOT number even if the cargo is not hazardous. Contact your state's Office of Motor Carrier Safety to clarify if your motor carriers are required to have a USDOT number. 

The Process to Receive a USDOT Number

In order to apply for a USDOT number a Motor Carrier Identification Report must be filled out. There is no fee for this application and it can be found at this website. Information will need to be written down such as the past year's carrier mileage, the company operation, and information about passengers and cargo. There is also an online registration assistant to make the process run much more smoothly.

Insurance Requirements

• If a business is a common carrier, or provides for-hire truck transportation and is open to the public, the FMCSA requires liability insurance, but insurance for cargo is not necessary.
• If a business is a contract carrier, or hires specific individuals and requires a contract, only liability insurance is necessary.
• Both common and contract carriers carrying household goods are required to have liability insurance and cargo insurance.
• If you are a broker, or your business manages the transportation of property through motor carriers, the FMCSA requires a surety bond or trust fund agreement.

Invest in Reliable Insurance

These tips only cover very basic information about the FMCSA's requirements. It is incredibly important to make sure you are following all of your federal and state requirements. Global Solutions Insurance Services can provide reliable insurance for motor carriers. Both domestic and international logistics insurance can be provided. GSIS also has experienced staff that can help customize your insurance to fit your business' needs. If you are interested in more information, please do not hesitate to contact us at 310-379-9660 and we would be happy to assist you with any questions you may have about our services

Federal Maritime Commission Calls for Comments on Proposed Changes to OTI Bond

The Federal Maritime commission is accepting feedback on proposed changes to the OTI Bond. The purpose of these amendments is to adapt to a changing market. The new regulations will affect the licensing, financial responsibility requirements and duties of Ocean Transportation Intermediary's. The FMC's aim is to improve transparency and regulatory effectiveness as well as streamlining processes and reducing regulatory burden. Opinions are due by July 31, 2013 and can be sent to Karen V. Gregory, Secretary Federal Maritime Commission 800 North Capitol Street, N.W.Washington, D.C. 20573-0001 Phone: (202) 523-5725 Email: secretary@fmc.gov. 

These can be sent as confidential or non confidential. For non confidential, include an original as well as five paper copies and if possible a PDF to secretary@fmc.gov. Include Docket No. 13-05, Comments on Ocean Transportation Intermediary Regulation Revisions in your subject line. 

If you want your comments to be kept confidential, they must be sent by mail or courier. These must include a transmittal letter marked confidential and detail the extent of the confidential treatment being requested. Responses to requests including confidential material must contain the complete filing and be marked by the filer as "Confidential Restricted" with the confidential segments marked very clearly on each page. Confidential filings must contain an original and a copy of the public version which shall leave out confidential segments and be clearly marked "confidential materials excluded" on each affected page. For submissions or parts of submissions asking for confidential treatment, the Commission will allow such to the extent of the law.

Any questions about the filing process or treatment of confidential material should be directed to the Commission's secretary, Karen V. Gregory at the address or phone number above.

FMCSA and Senator Charles Schummer Announce Steps to Reduce Bridge Strikes

200.  That's how many bridge strikes occur in NY state alone.  At least 2 trucks hit the Onondaga Parkway Bridge in upstate NY every year, despite 13 separate signs detailing the 10' 9" clearance, and a NYS Department of Transportation ban on truck traffic on that route.  In 2010, one of those strikes was responsible for 4 deaths and over 2 dozen injuries.  How does this keep happening?  One clear answer is the inappropriate use of GPS navigational devices by commercial vehicle operators.

In fact, 80% of bridge strikes by commercial vehicles in New York State have been attributed to the use of passenger vehicle-based GPS devices.  In an effort to alter this trend, the FMCSA (Federal Motor Carrier Safety Administration) and New York State Senator Charles Schumer have instituted a major campaign to increase driver education and understanding of the risks of using the wrong GPS devices to determine truck routes.

Senator Schumer, a long-time advocate of safe driving and sponsor of distracted driving legislation, has pushed hard for the Federal Department of Transportation to examine this issue and to determine methods to mitigate the damage to property as well as the safety risks involved. Although the originally focused on creating legislation limiting and carefully regulating the use of GPS navigation tools, he has now partnered with the FMCSA to develop recommendations and educational programs on the proper use of the technology.

As a result, the FMCSA has begun issuing official recommendations on the proper use of GPS devices in freight vehicle routing.  As part of the new CDL rules required by the Moving Ahead for Progress in the 21st Century Act (MAP-21), specific training in the appropriate use of GPS navigation tools has been proposed as a requirement for all new entry-level certification programs for commercial motor vehicle operators.  

Ongoing commercial driver education will also train and remind drivers to only use GPS systems designed specifically for the industry.  These specialized applications take into account the specifics of the truck they're in, including the height, weight and contents, and will route the trucks onto safe, appropriate roads. The GPS applications available to consumers focus on passenger vehicles only and frequently route trucks onto unsafe or restricted routes, causing them to crash into low overpasses and bridges.

Multiple education and awareness programs have also been developed, both by the industry and the FMCSA.  In partnership with Senator Schumer, a visor card has been designed and distributed reminding drivers of key items to keep in mind when using GPS navigation technology, including: a) use of commercial vehicle-specific technology only, and keeping any software up to date; b) avoiding distracted driving scenarios where the driver is more focused on the device than their driving, and c) ensuring that the driver has entered in all the relevant vehicle information into the system (height, weight) prior to travel so that the suggested routes are appropriate for that specific vehicle. The American Trucking Research Institute (ATRI) and the American Trucking Association (ATA) have also conducted major research studies on this issue as well as developing multiple education and outreach efforts to increase awareness of this issue. 

FMC Approves Rewrite of OTI (Ocean Transportation Intermediary) Regulations

Recently, the U.S. Federal Maritime Commission (FMC) voted 3-2 to move forward on a proposed rewrite of OTI (Ocean Transportation Intermediary) regulations. The new regulations would require:

1. OTI's to renew their licenses every two years;
2. foreign-based non-vessel ocean common carriers (NVOCC) to keep a full-time staffed U.S. presence; 
3. more stringent qualification requirements for new OTI entrants, regarding age, experience, and character; and
4. increase in OTI bonding levels.

To some, this decision suggests a general assumption among advocates that costs will only rise marginally and that regulatory burdens will see a minor and harmless increase. However, FMC Commissioner Rebecca Dye disagrees and issued a dissenting statement.

 

Commissioner Dye's statement hinges on the belief that any regulatory changes should work to limit government compliance costs, increase the efficiency of the supply chain, and "allow American businesses to be more competitive in the global marketplace." The proposed regulation changes, as Dye describes, negate more appropriate advances.

 

Firstly, Dye asserts that the new proposal does not address the potential harm of the change in regulations. Such changes should come with a clear analysis of harm with the weigh-in of all stakeholders, including the shipping public. Dye cites Executive Order 13563's call for a Retrospective Review of Existing Rules as grounds for a thorough harm analysis.

 

Next, Dye points out worrisome blanks where the user costs should be. Dye suggests advocates for changes have not adequately forecasted what the costs of such changes will be. Without detailed forecasting, the shipping public cannot respond knowledgeably.

 

Thirdly, Dye does not believe the harm to the public of raising OTI bonding has been quantified. Specifically, Dye points to the possibility of deterring new OTI entrants with raised bonds, thereby diminishing the U.S. capacity to be competitive in the global marketplace.

 

Finally, in her dissenting statement, Dye asserts that the proposed changes initiate a higher bonding level with a shorter renewal time period than those "recently enacted by Congress in MAP-21, Public Law 112-141." This creates a disharmony between MAP-21 and proposed OTI regulations. Dye believes OTI regulations should be made synchronous to MAP-21.

 

The advanced notice of the FMC's proposal will be published in the Federal Register. Upon publication, a 60-day notice and comment period will precede the final rule publication.

The FMCSA (Federal Motor Carrier Safety Administration) TACT (Ticketing Agressive Cars and Trucks) Program

The FMCSA (Federal Motor Carrier Safety Administration) has a major impact on safety standards for all commercial vehicles that travel the highways of the United States.  A goal of the FMCSA is to remove high risk carriers and drivers both at entry level and through education and maintenance programs. 

Key FMCSA programs include:

·         Border and International safety

·         The Commercial Driver's License program

·         Federal Motor Carrier Safety Regulations (FMCSR)

·         Hazardous Material Regulations (HMR)

·         Motor Carrier Safety Assistance Program (MCSAP)

·         Ticketing Aggressive Cars and Trucks (TACT)

 

The TACT program began in 2004 with the key state of Washington for the pilot program.  Its mission was to promote safe driving behaviors by educating car, bus and truck drivers on how to share the road safely.  Also to reduce CMV related accidents and crashes involving injuries and fatalities.

The hierarchy of the TACT program begins at the top with the FMCSA headquarters' outreach programs to divisional and regional areas.  From there it filters down to lead state coordinators and steering committees who communicate, enforce and evaluate programs like TACT to various state agencies such as:

·        Department of Transportation

·         Sheriff and Police Departments

·         Federal Highway Administration

·         State Trucking Associations

·         Government Highway Safety Representatives

 

The State Peer Exchange Network (T-Spen) helps to support and share the results and lessons of TACT and bring federal state and local resources together on the same page to educate the public. In 2004, there were five states participating; in 2009 13 states; and by 2011, 19 states and 3 individual US cities and counties were on board.  Improvements to the administration of TACT have included streamlining evaluations, grant funding and more outreach communication programs. 

In 2013 so far, the FMCSA has shut down 15 passenger carriers and carried out 13,500 roadside inspections and ticketed 1,500 drivers and vehicles for violations. The violations include unsafe lane changes, tailgating, failing to signal or yield right of way, speeding and any combinations of violations of 2 or more that is considered "aggressive behavior."