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!

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.

Disagreement Over The New $75,000 Broker Bond

Reports of the impact of the recently enforced $75,000 broker bond on property brokers is mixed. In effect October 1, 2013, brokers were given a 60-day grace period to comply with the increased surety bond requirements. The grace period ended December 1, and the Federal Motor Carrier Safety Administration's (FMCSA's) database has seen a reduction of over 8,000 brokers out of roughly 21,500.

The increased requirement has seen its share of controversy. Backed by the Transportation Intermediary Association (TIA), American Trucking Associations, and the Owner-Operator Independent Drivers Association (OOIDA), it was considered better protection for freight carriers. Supporters argued the $10,000 bond had been in place for 30 years and was no longer adequate to cover losses suffered by carriers jilted by fraudulent brokers. The new and higher bond was touted as proper course to ensure professionalism and legitimacy in the industry.

Others felt it was an unfair hardship inflicted upon small brokers who do not do enough annual business to afford the increased bond. The Association of Independent Property Brokers & Agents (AIPBA) has been the most vocal opponent of the change. In previous negotiations, the AIPBA had agreed to a $25,000 bond that would cover inflation, but argued $75,000 was excessive, overly punitive to small business, and a means for mega-corporations to monopolize the industry.

Estimates of revoked brokerage licenses has varied. Discrepancies in the numbers of affected brokers may be due to whether or not reported statistics include warning notices sent in November, inclusion of those who voluntarily surrendered their licenses, and inactive brokers who were simply cleaned out of the database after December 1. AIPBA maintains that over 8,000 valid and active brokers were shut down. The organization's petition to the U.S. Court of Appeals remains pending.

In the meantime, brokers who have had their licenses revoked may be eligible for reinstatement if they meet the higher bonding requirements.

Shipping Advantages Provided By an NVOCC (Non Vessel Owning Common Carrier)

Today when an International shipper is looking for their best options, they might want to consider the benefits of using a Non Vessel Owned Common Carrier (NVOCC).  These shippers are able to accommodate the needs of both large and small companies.  Many government agencies also regularly utilize the services provided by a NVOCC. 

According to an article in Maritime Journal, “The N.V.O.C.C. is a freight forwarder who sells a combined transport package incorporating a sea transit. He is not a ship owner, nor does he appear to be normally involved in the chartering of ships although no doubt he could do this.”  

OTI 

Prior to a company becoming a NVOCC, they will need to obtain their ocean transportation intermediary (OTI) license.  This means they will have to be qualified as a shipper by following a variety of steps required by the Federal Maritime Commission. 

Bills of Landing 

A NVOCC operates in the same way as any other cargo carrier.  They are able to issues bills of landing (BOL).  This is a document that confirms that goods have been taken on board a vessel.  It verifies the goods will be shipped to a particular destination and consignee for end delivery.  

Experience 

Most NVOCC shippers will have all the experience necessary to handle a wide variety of cargo types.  They will be able to do importing as well as exporting.  NVOCC shippers can handle everything from over sized items to temperature sensitive cargo and more.  

Tariffs 

NVOCC will file tariffs with necessary government regulatory bodies.  This will generate the required public tariffs.  

Experience 

An experienced NVOCC will know every important aspect of cargo shipping.  They will know how to successfully book space with shipping companies.  A NVOCC will be able to provide all required documentation for the shippers they utilize.  They will be able to coordinate the efficient delivery of cargo domestically as well as internationally.  

If you would like to know more about how an NVOCC (Non Vessel Owned Common Carrier) can meet your cargo shipping needs we can help.  Contact us today and learn more.

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 Significance of Contingent Cargo Insurance

Contingent Cargo Liability insurance is a secondary policy that freight brokers carry in order to cover some or all costs, not normally protected by a typical primary policy, that are involved with replacing, handling, storing, or disposal of cargo that is damaged, refused, or lost.  

Although there is no law requiring contingent cargo liability insurance, many carriers choose not to work with a broker who doesn't have it, because most often brokers forward claims to their carriers. If the carrier's insurance won't cover it, somebody still has to pay the expenses. As a broker without coverage for such an instance, your carriers can blame you for the loss even though you can't legally be held liable. Relationships between you and your carrier can suffer. 

Some benefits to having contingent cargo insurance are that it lets you compete with other brokers, since you don't have to worry about paying for lost shipments out of your own pocket, and if anything happens to a shipment, you can still get goods to consumers without too many undue delays.

There are two scenarios that may arise where you must have coverage. One is if you and a carrier sign a contract transferring liability to you. The other is when you choose a carrier who doesn't have proper carrier's insurance. Normally, this doesn't happen, but sometimes carriers unintentionally miss premium payments or they don't have a policy that covers as much as you would like them to. 

As you can see, the cost of carrying contingent cargo liability insurance is well worth the expense. Lost relations can be as devastating as lost shipments. This insurance helps to protect you from both.

Why Every Shipper Needs A Freight Broker

You may have heard of freight brokers but are not sure of what they do. Simply defined, a freight brokeris a company that acts as a link between companies or individuals who need shipping services and certified motor carriers. It is worth noting that while brokers play a crucial role in cargo transportation, they do not in any way function as the carriers or shippers. The role of the broker is to identify the needs of shippers and then connect the shippers with carriers who are able to transport the goods at a reasonable price.

There are a number of reasons why you should consider using the services of a freight broker. For starters, you get the best prices for your shipments. It is the duty of the freight broker to find you the most affordable shippers available. Before settling on particular shippers, brokers take the time to compare bids from several companies.

Another reason to use freight brokers is that they help you save precious energy and time. Think of the amount of time you would spend searching for the most reputable and reasonably priced shippers. This is time that could be spent doing other important things. Having worked in the industry for a significant amount of time, the brokers know which brokers to use.

Though there are many freight brokers out, it is safe to say that they are all not equal. In order to choose the right broker, there are a number of things you should look for. Proper licensing is the first thing to look for. According to fleet owner: “Beginning Oct. 1 anyone acting as a broker or a freight forwarder, including motor carriers who broker loads, are required to register and obtain broker or freight forwarder authority from FMCSA. Brokers and freight forwarders will also not be subject to a minimum $75, 000 financial security requirement.” What this means is that you should only use freight brokers who have licenses from the FMCSA, or the Federal Motor Carrier Safety Administration. Hiring licensed brokers ensures that you are protected in case something goes wrong.

In the event that your shipment is lost or damaged, you need to be sure that you will be compensated. For this reason, you should choose a broker with insurance. In addition to liability insurance, good brokers also carry errors and omission insurance.

If you would like to know more about freight brokers GSIS is the company for you. Do not hesitate tocontact us today.

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.

The Need For Contingent Cargo Insurance

Whenever goods are transported across the country there is always a chance they may not make it to their destination.  If they do make it, they could be damaged.  This could be caused from ships being in bad storms, thefts, accidents and more.  In order to prepare for such a situation, there may be a need for added insurance beyond standard coverage for cargo.  

Contingent cargo insurance could be required if a freight broker is responsible for any lost cargo or damage not covered by other insurance.  The decision to purchase this insurance may be based on the type of contract between a shipper and the freight broker.  There are contracts that will make the freight broker responsible the cargo.  It’s also essential to have the right coverage if the carrier utilized fails to pay.  

This type of insurance enables brokers to establish a positive relationship with shippers and carriers.  It enables them to not be concerned about paying for losses on their own.  This can benefit the consumer by providing added protection in getting shipments to their destination.  

There are also policies available that cover any financial responsibilities associated with the transportation of the cargo.  There could be situations involving fraud committed by employees, pollution cleanup and more.  It can even cover such things as unintentionally breaking laws and regulations associated with moving different types of cargo.  

Contingent cargo insurance can also provide legal coverage should it be required.  In this situation all attorney fees are covered.  The expenses associated with any type legal defense are quite costly.  This type of coverage will be very valuable if any type of situation occurs that requires legal representation. 

If cargo is shipped by air, sea, truck and more it’s important to have an insurance plan that provides all the necessary coverage.  It is always best to analyze insurance needs based on the type of cargo, the shipping agreement and the method of transportation utilized. 

 

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.

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

TIA Releases New Fair Labor Standards Act Framework at 35th Annual Conference

The Transportation Intermediaries Association (TIA) saw a record attendance at the 35th Annual conference held in April. Over 900 3PLs, brokers, forwarders, and suppliers attended the event, the most ever at a TIA convention, according to PerishableNews.com.

Participants received updates to the Carrier Safety Administration and MAP-21. In addition, a new Carrier Selection Framework was released. TIA members can access this new framework at the TIA website.

Conference participants also received the new Fair Labor Standards Act Framework. The working draft is accessible via the TIA website, as well. A brief discussion of this framework appears below.

The document sites two frequently occurring personnel-related issues as the foundation of the new Fair Labor Standards Act Framework:

1. the designation of workers as independent contractors versus employees; and
2. the classification of employees as exempt versus non-exempt.

Designation of workers as independent contractors versus employees is particularly common as it pertains to sales agents, transportation brokers, and similar positions. Businesses who are found to have improperly designated a worker as an independent contractor may be liable for large amounts of back pay, unpaid employment taxes, and penalties.

The issue of employee classification as exempt or non-exempt has occurred most commonly in relation to account managers or similar sales or support positions. Specifically, an employee must be properly classified as exempt from overtime and minimum wage requirements or "non-exempt" (requiring payment for hours worked over 40 per week, or over 8 hours per day in some states). Regulators assume most employees are non-exempt and should be paid overtime. Businesses found to have improperly classified an employee's exemption status face significant liability for back pay (unpaid overtime) and attorney fees.

The framework guides TIA members with greater detail through these commonly occurring personnel challenges. It serves as a resource in identifying potential challenges and making adjustments as necessary. However, members are urged to seek legal advice based on their specific situations and with adherence to any and all applicable laws. Requirements may differ by location of business, location of operations, and finer details of their business models.

35th Annual TIA Convention And MAP 21  

For the 8th Consecutive year GSIS was in attendance for the TIA Convention. We made many new friends and thank all those in attendance for an educational and entertaining week.

 

The past 12 months in the 3PL industry have, like the economy, had its ups and downs. Most notably the introduction of MAP 21 of the Highway Authorization Bill. Last July President Obama forever changed the logistics field with the introduction of Map 21 (moving ahead for progress in the 21st century act). Since its introduction, MAP 21 has been implemented by DOT, FTA, FMCSA and FHWA with one goal in mind: to develop a national strategic freight plan. Just renewed by congress in April, MAP 21 is running full steam ahead. we can revisit some key points pertinent to our field:

 

1. Electronic Logging Devices- the law requires DOT to establish regulations mandating electronic logging devices (EOBR’s) for motor carriers currently required to complete paper logs. The regulations must be in place within 1 year and carriers will have two years thereafter to adopt/install the devices.

2. Freight Policy- DOT is creating a national freight plan that includes an assessment of the condition and performance of the national freight network and identification of highway freight bottlenecks. This is intended to improve freight efficiency from 80% to 90% off of interstate systems and 95% for interstate systems.

3. Truck Size and Weight- the act does not include an increase in size and weight limits except for an increase in allowable weight for idling reduction devices from 400 pounds to 550 pounds. States are also allowed to issue 120 day oversize-overweight permits to trucks responding to disasters if a national emergency is declared.

4. Performance Standards- each state and urban area is required to establish minimum performance standards related to highway and bridge maintenance, congestion, system reliability, safety, freight efficiency, air quality and project delivery. Failure to do so will result in the transfer of federal funds from non logistic areas in order to compensate.

5. Broker Bond- MAP-21 increases the broker bond to $75,000 and applies it to freight forwarders. It also tightens requirements on bonding companies to respond to carrier claims.

6. Proficiency Testing- all new employees entering the motor carrier field now must complete the DOT safety testing within 12 months rather than the previous standard of 18 months.

7. Transport of Agricultural Commodities & Supplies-increases air mileage from 100 to 150 and eliminates “in the state” from regulation; making it an "interstate" issue.

8. HAZMAT- Hazardous Materials Safety Administration (PHMSA) is to update its accident and release recordkeeping and reporting requirements. PHMSA is also to assist DOT in creating mandatory standardized training for HAZ enforcement officials.