Posts Tagged ‘carrier’

Only 12% of Active Carriers Contain Sufficient Data for Accurate CSA Rating

Thursday, December 13th, 2012

Shortly after the Federal Motor Carrier Safety Administration (FMCSA) put into effect changes to the CSA’s Safety Measurement System last week, the American Trucking Associations (ATA) released a white paper explaining that “the CSA system lacks sufficient data on the majority of the industry to render meaningful scores for most motor carriers.” 1

According to the ATA, the FMCSA “has sufficient violation data to assess 40% of active carriers in at least one category but only enough to assign a percentile rank or score in at least one category to 12% of active carriers,” which the FMCSA claims is non-problematic since ‘those carriers are involved in 83% of the crashes.’” 1

But the ATA emphasizes that many accidents are not even reported to the FMCSA (less than 75% according to the University of Michigan Transportation Research Institute), leading to inaccurate CSA ratings.

The FMCSA believes that their statistics are accurate due to utilization of their State Safety Data Quality (SSDQ) system, which estimates the number of non-fatal accidents by looking into the number of fatal crashes, comparing these estimates with the number of actual reported non-fatal crashes, giving those states a rating of “good,” “fair,” or “poor.” 2

Although the FMCSA’s findings note that the majority of states are classified as being “good” when indicating their crash numbers, the ATA points out three main flaws that lead these results to be considered inaccurate.

*The FMCSA model of determining whether or not a state is doing an appropriate job in reporting non-fatal accidents is too broad, giving the state a wide threshold to report numbers in.  For instance, “Texas needed to transmit between 12,551 and 25,163 accidents, a range of 12,612 accidents,” a number that far exceeds accuracy. 3

*Although the number of reported non-fatal accidents may only slightly vary in small states year after year, the FMCSA’s threshold varies depending on the number of fatal accidents in that state.  As the ATA noted, “Alaska experienced an annualized fatal accident count of between 1 and 3 for each month in 2012.  When the annualized count was 3, the model expected between 58 and 136 non-fatal, reportable accidents, a range of 78. When the annualized count was 1, the model predicted between 17 and 47 accidents, a range of 30.” 2 The ATA concluded that the number of fatal accidents is not a reliable indicator in determining the number of non-fatal accidents in a state.

*Finally, although the FMCSA claims that most states do a “good” job in reporting crash statistics, which the agency considers as evidence that their ratings are accurate; the previous explanations explain these numbers as unreliable.

The ATA concluded by stating that “Thorough examination of state police accidents reports (PAR) remains the only way to accurately measure State accident reporting to MCMIS.” 2

Read the ATA’s White Paper: Underreporting of Commercial Motor Vehicle Crashes:  Assessment of FMCSA’s Crash Reporting Measurement Tool December 2102 at

http://www.trucking.org/Miscellaneous%20Documents/12%204%2014%20-%20Underreporting%20of%20Crashes%20December%202012%20Final.pdf.

Do you agree with the ATA that the FMCSA’s CSA system contains insufficient data?  What do you find to be the consequences of having this “inaccurate” in the system?

1http://www.supplychaindigital.com/global_logistics/ata-speak-out-about-csa-data-limitations

2http://www.trucking.org/Miscellaneous%20Documents/12%204%2014%20-%20Underreporting%20of%20Crashes%20December%202012%20Final.pdf

ATA Releases 2013 Trucking Forecast

Friday, October 12th, 2012

ATA

At a panelist discussion consisting of the American Trucking Association’s Bob Costello, National Association of Realtors’ Lawrence Yun, and HIS Global Insight’s Gregory Daco earlier this week, the ATA released their 2013 trucking forecast, calling for a slow, steady “GDP growth of about 2% for this year and 1.8% for next year” for trucking and the economy.1

THE FISCAL CLIFF

As Daco commented, “I think we’re in for a number of quarters of medium growth, a picture of good but not great,” at the same time explaining that “if the country goes over the fiscal cliff, HIS Global Insight is predicting two consecutive quarters of negative growth in 2013.” 1 The fiscal cliff Daco is referring to is “the simultaneous onset of tax increases and spending cuts that will be triggered on Jan. 1,” due to the Budget Control Act of 2011 going into effect, “that many believe would push the country back into recession and drive unemployment up even higher,” an issue that was brought up multiple times by the panelists throughout the session.2

VOLUMES

According to Costello, tonnage is up 3.7%, however, freight volumes are headed sideways.  As he explained, volume is up 0.4% for large TL and LTL carriers while volumes for small TL carriers have decreased 4.6%. 1

Who will do well?  Costello states that tank trucks (whose loads are up 6.6%), will do well due to fracking, as well as flatbed carriers (up 5.7%) due to housing.

HOUSING

Housing starts are expected to increase nearly 50% in the next few years, however, as Yun remarked, “Those will be solid gains, but we have to remember we need to increase 100 percent just to get back to normal. Home prices will increase 5 percent next year and another 5 percent the following year so that’s a 10 percent growth that means there will be fewer underwater homeowners and once they get above water they begin to move to newer homes.” 2

CAPACITY/DRIVER SHORTAGE

Another issue brought up by the panelists was capacity, which is expected to remain tight due to the shortage of trucks and drivers (with a current shortage of 20,000-30,000 which is expected to increase over the next year due to stricter regulations) to transport freight. The panelists suggested that carriers “ensure drivers have more time at home, provide reliable equipment to company drivers and offer pay incentives and bonuses” in order to prepare for the driver shortage and maintain/attract drivers. 3

“THE NEW DIESEL FUEL”

Along with driver shortage having an impact on capacity is the number (and with that quality) of trucks on the road.  As more and more carriers are replacing older equipment (due to stricter regulations) they are reducing their fleet size by trading in two old tractors for one new one.  In fact, on average, fleets have increased by 1% or less with “large truckload fleets off by about 5%, small truckload carriers down by about 9%, and less-than-truckload down by 11%.”1

This pressure on carriers to replace equipment (without building capacity) is what Costello deemed “The New Diesel Fuel.”2

ECONOMY

As previously stated, the economy is expected to grow 2% in 2012 due to factors such as housing.  At the same time, there lie risks/uncertainties, which Daco pointed out being domestic, the debt ceiling, and foreign stating that “the U.S. could withstand a mild European recession, but could not withstand a full-blown financial crisis there.”2

What are your comments regarding the American Trucking Associations’ 2013 Trucking Forecast?  Do you agree with Costello that replacing equipment is “The New Diesel Fuel?”

Are you a driver looking for a career with a reputable carrier? We are offering you a list of some of the many perks you will receive working as a Road Scholar driver.

*Excellent Pay and Benefits:  We compensate our drivers for their hard work, offering a $1500 sign-on bonus, excellent pay, safety bonuses, a comprehensive benefits package for eligible full-time employees, and much more!

*Flexibility in Work Schedules:  Full-time and Part-time positions are available.

*Home Time:  As a family-owned business, Road Scholar understands the importance of family, which is why we allow flexibility in your work schedule to allow you to spend the well-deserved and needed time with your family, so your personal life is not inconvenienced by work.

*A Great Work Environment:  Our operations team is friendly, courteous, and knowledgeable.  We treat our drivers with respect and eliminate any discrimination.

*Excellent Equipment:  We conduct daily maintenance checks and operate newer models…one of the reasons why we’ve never been cited for a piece of faulty equipment in an accident!

*New Sights/Once-in-a-Lifetime Experiences:  The ability to see new places/sights and meet new people.  One of our drivers even met Lorretta Lynn at a Tennessee truck stop.  Another witnessed a tornado come across the highway he was traveling on.

*Make a Difference:  Drive with a purpose by climbing onboard one our awareness trucks.  Whether it is our Autism Speaks or Stop Bullying truck, take pride in transporting freight while helping spread awareness.  Here’s what one of our drivers had to say about the awareness campaign.  “The awareness program is really good.  I get a lot of compliments about the foundation that I drive for.  I drive the American Foundation for the Blind.  I had one person in Virginia, a gentleman out of the blue, come up and tell me that his daughter was in that foundation.  It made me feel pretty good because I feel like I’m the odd ball out of the whole group.  He liked the truck.  He took all kinds of pictures.”

Interested in a rewarding carrier?  Apply today!

1http://www.truckinginfo.com/news/news-detail.asp?news_id=78274

2http://www.thetrucker.com/News/Stories/2012/10/10/Trucking2013forecastnotgreatbutnotgloomy.aspx

3http://www.ttnews.com/articles/basetemplate.aspx?storyid=30345&t=Driver-Shortage-Requires-Industry-Action-Experts-Say

Does it Pay to Save? Cost Reduction Ranked Top Priority in Supply Chain

Thursday, September 6th, 2012

IDC Manufacturing InsightsLast month, IDC Manufacturing Insights released the results of a study that surveyed over 300 manufacturing supply chain professionals, grouping individuals by “asset-oriented (e.g., chemicals), brand-oriented (e.g., consumer goods companies), engineering-oriented (automotive, aerospace), or technology-oriented (e.g., high tech).” 1

When asked what they considered their largest supply chain priority, 82% of respondents stated overall cost reduction, which they planned to achieve from “better procurement effectiveness.” 1

How do they plan to cut supply chain costs?  35% stated reducing procurement costs, making it the number one strategy, while nearly 18% acknowledged cutting transportation/logistics costs, the third most common tactic. 1

But does it always pay to cut costs especially when it comes to choosing a quality carrier to transport your freight?  Let’s take it a step further.  Would you be willing to put your $1.7 million high-risk shipment on a truck with no tracking devices?

That’s what happened last December for a load of electronics destined for Ontario, Canada.

The truck, carrying 22 pallets filled with 5,000 of RIM (Research in Motion)’s BlackBerry PlayBook tablets valued at $1.7 million, was traveling from a distribution center in Plainfield, IN when its driver decided to stop at the Pilot Travel Center in Daleville for food and a shower, only to find the truck missing that afternoon when he returned.

According to The Herald Bulletin, the distribution center told police that “the shipment did not have any tracking devices,” and therefore, the chances that the truck and its cargo would be recovered are considered slim.

Now are cutting costs worth the gamble?

Following cost reduction as the top supply chain priority was supply chain agility (~55%), product quality and safety improvement (52%), and improving customer service (~50%). 3

You will never reach an automated system when calling Road Scholar.  A friendly and helpful customer service member is always available to help you both via phone (800-542-2301) or online with our e-mail and live chat options (www.roadscholar.com).

Road Scholar doesn’t stop there.  We are continuing to service our customers with the latest and most effective security features on our fleet.  Road Scholar security features include:
- SkyBitz Monitoring and Tracking  (We have the ability to track the movement of a power unit from startup to shutdown as well as its history and have independent power unit and trailer tracking)

-Electronic door monitoring  (Providing you with a history of every time the trailer door was opened and closed)
-Reefer tracking

-Ability to “ping” a specific power unit for details on its location, which can be updated as frequently as every minute

-Qualcomm Distress/Panic Messaging  (Panic buttons with vehicle disabling systems to remotely prevent the operation of a vehicle)

-Roof decals for aerial tracking
-Navalock
-Full fleet visibility via computer as well as two 50-inch screens constantly monitored in headquarters

-Facility Security
-Policies, Protocols, and Compliance
-10 year criminal background check on all drivers and drug test every new hire
-Verify Driver ID badges via Regiscope Online
-Digital communication to and from drivers

What security feature would you like to see incorporated on tractor trailers?  Do you feel that cost reduction should be the number 1 priority in the supply chain?  What is your priority?

We challenge you to ship with Road Scholar Transport and bear witness to our capabilities of securing your load from the moment it’s picked up, to the moment it arrives for delivery.  Click here to get a rate today!

1http://www.scdigest.com/ASSETS/ON_TARGET/12-08-14-1.PHP?CID=6096

2http://consulenza-iso9001-eng.blogspot.com/2012/02/lean-six-sigma.html

3http://www.mhia.org/news/industry/11699/reducing-overall-supply-chain-costs-is–1-priority-among-manufacturers

Loss of Business and Vicarious Liability Risk Top List of Concerns Over CSA Data

Friday, August 17th, 2012

CSAConcerns over inaccurate data in the Federal Motor Carrier Safety Administration’s CSA program (which measures a carrier’s and driver’s safety performance in seven BASIC categories including unsafe driving, fatigued driving, driver fitness, controlled substances/alcohol, vehicle maintenance, cargo-related, and crash indicator) has several trucking companies lashing out over loss of business and shipper vicarious liability concerns.

Last month, the Owner-Operator Independent Drivers Association announced that it had filed a suit against the FMCSA stating that the agency has been releasing inaccurate driver records to employers that ultimately lead to negative consequences for drivers.

According to the suit, the FMCSA is accused of releasing driver data to employers conducting pre-employment screening before the driver’s accusation even reaches the court, resulting in sometimes inaccurate data where the driver was not at fault. 1 The group had presented three case examples in which drivers had their violations dismissed in court, however, these violations still remained in the system even after they submitted appeals through the agency’s DataQ, violating the Fair Credit Reporting Act and affecting future business opportunities.

As one carrier noted, “Crashes where the driver was not at fault impact the motor carrier’s score the same as crashes where the driver was at fault.  As a result, a safe motor carrier could have a high crash indicator score as a result of the misfortune of being involved in non-preventable crashes.” 2

OOIDA is urging that the FMCSA “immediately suspend the program so that it no longer damages the reputations and livelihoods of good, safe motor carriers and good, safe drivers.” 2

However, groups including Road Safe America insist that the FMCSA “resist any challenges to remove, limit, or subjectively classify violation or crash data that would result in diminishing the program’s effectiveness,” since “the agency cannot rely on police accident reports to determine ‘non-preventability’ due to there not being a section in the standard police accident report to address or spur an investigation into the question of ‘preventability.’” 2

Carriers acknowledged that more and more shippers are basing their carrier selection on a company’s CSA scores.  If a carrier has a high rating or any alerts, shippers are refusing to conduct business with them, which carriers find out of their control and unfair due to inaccurate/faulty data in the system.

More and more shippers are choosing to vet out their carriers using the CSA system in fear of being wrapped up in a vicarious liability lawsuit, which can lead to multi-million dollar claims.

According to vicarious liability, “Where a shipper acts as principal, and a carrier or broker acts as agent of the shipper, liability for the conduct of the carrier or broker may be imputed to the shipper,” since the shipper had “the right to control the conduct” of the carrier or broker. 3

Up until 2004, the carrier, and only the carrier, was held responsible for “any and all property damage or bodily injury it caused” while freight was in its possession. 3 In 2004, however, this changed in a court case known as Schramm v. Foster, in which a shipper hired a 3pl to transport their freight.  The carrier that was hired to do so by the 3pl had gotten into an accident, seriously injuring two people.  Instead of strictly the carrier being held accountable for the accident, the 3pl was found liable as well since, according to the ruling, the 3pl was responsible for vetting out a driver via the FMCSA’s Safestat database.

As QualifiedCarriers.com informs, “a carrier’s liability insurance will exclude indemnity for independent claims against the shipper,” for example, negligent hiring, so you, the shipper, can be sued as well for your carrier’s actions.

In further detail, shippers are now liable in cases where “the plaintiff can show (1) the carrier caused injury to the plaintiff’s property or person through negligence, recklessness or intentional misconduct and (2) the shipper did not exercise reasonable care or perform proper due diligence when it screened, vetted, and selected the carrier to move the shipper’s freight.” 3

The FMCSA will be reviewing comments on the CSA system and is expected to finalize any changes this month. 2

Has your CSA score had an impact on your business?  As a shipper, do check a carrier’s CSA score prior to doing business?

Check out the TIA’s strategy to reduce 3PL liability at http://www.tianet.org/AM/Template.cfm?Section=Home&TEMPLATE=/CM/ContentDisplay.cfm&CONTENTID=7912.

1http://www.ttnews.com/articles/basetemplate.aspx?storyid=29742&t=OOIDA-Sues-FMCSA-Over-Driver-Database

2http://www.ttnews.com/articles/basetemplate.aspx?storyid=29962&t=CSA-Doesnt-Accurately-Reflect-Safety-Fleets-Tell-FMCSA-in-New-Comments

3www.qualifiedcarriers.com/why-risk-management.aspx

15 Industry Groups File Suit Against HOS

Wednesday, August 8th, 2012

FMCSAWhen the Federal Motor Carrier Safety Administration revised the hours of service provision to include two consecutive breaks between the hours of 1 a.m. and 5.am., reducing a driver’s work week from 82 to 70 hours and becoming effective July 1, 2013, it prompted many debates.

Last week, fifteen industry groups decided to fight back, filing a suit against the ruling.  These group include the American Bakers Association, Food Marketing Institute, Intermodal Association of North America, International Food Distributors Association, NASSTRAC, National Association of Manufacturers, National Chicken Council, National Grocers Association, National Private Truck Council, National Retail Federation, National Turkey Federation, Retail Industry Leaders Association, Snack Food Association, U.S. Chamber of Commerce, and U.S. Poultry & Egg Association.

Among the problems the groups are arguing the provision would result in include higher costs, the reduction of safety on the road, and lead to economic harm for agriculture, manufacturers, and retail supply chains and distributors.

As National Grocers Association President Peter Larkin states, “The Federal Motor Carrier Safety Administration clearly failed to take into account critical information such as costs on the entire supply chain that NGA and others provided in public comments.” 1

One of these costs reflects back on food manufacturers who need to deliver their products while they are fresh to their customers.  A delayed shipment can mean the difference between an accepted load and one that needs to be destroyed.

“It is the retail industry’s responsibility to get products to market and into consumers’ hands in a safe and timely manner. It is a responsibility that we hold dear. Any new regulation that impedes that ability increases our transportation costs, increases consumer prices and jeopardizes the fragile economic recovery,” the National Retail Federation notes. 2

And with a driver’s work week being reduced, carriers need to recruit additional drivers in an already tight driver pool, to account for lost time on the road.  Joni Casey, Intermodal Association of North America President, explains, “The 34-hour restart change is particularly problematic as it will reduce a driver’s present work week and impede the scheduling flexibility necessary to service…a negative impact that affects one will likely have a ripple effect across the entire supply chain.” 3

In fact, the Food Marketing Institute predicts that their transportation costs would increase between 10% and 20%, and therefore, trickle this increase down to the retail level. 1

The National Grocers Association adds that the restart provision would “add tens of thousands and in some cases millions in new costs on wholesale operations,” not to mention add congestion to the road, increasing safety concerns. 1

With the increasing number of groups stressing their concerns over the FMCSA’s hours of service, we are providing some tips to help you prevent scheduling dilemmas.

*Stop bidding out your business year over year.  No one gets used to the “players.”  Instead, establish and grow your relationship with a specific carrier(s).

*With that being said, work hand-in-hand with carriers to schedule routine shipments.  If a carrier knows that a particular lane will run a specific time each week or month, they can schedule backhaul, cutting back on costs for both the carrier and shipper.

*If you do not have a load that ships on a specific time of week/month, it is best to plan your lanes ahead of time.  Giving carriers a day or more notice can help them position their equipment efficiently.

*It is also beneficial to add additional carriers in cases where your primary carriers do not have the availability.

What changes do see the FMCSA’s HOS provision as having on the entire supply chain?  Are you involved with any of the organizations filing suit?  We would like to hear your comments below.

1http://supermarketnews.com/laws-amp-regulations/retail-groups-challenge-trucking-rule

2http://www.truckinginfo.com/news/news-detail.asp?news_id=77658

3http://www.progressiverailroading.com/intermodal/news/IANA-part-of-legal-brief-filing-in-FMCSA-hoursofservice-rule-case–31905

Road Scholar Makes Shipping Quicker and Easier on RoadScholar.com

Friday, August 3rd, 2012

Road Scholar Transport is dedicated to providing quality transportation, immediate customer service, and making shipping fluent and stress-free to our customers.  That’s why we’ve built our website with a wide variety of tools and services that provide shippers with a quick and convenient way to communicate and gather information regarding their shipments with just the click of a button.  Let’s take a tour of the options you have available at www.roadscholar.com.

Live Chat with a Transportation Expert: Have a question about a shipment?  Need to get a quote ASAP?  Then use our live chat to get answers to your questions instantly.

chat

Access to Documents/Certifications: Including our liability insurance, hazmat credentials, SmartWay Certification Certificate, and much more.

Instant Rates & Quotes Online: Get rate quotes in a matter of minutes through our quote form (http://www.roadscholar.com/freightquote.php) or via the live chat option.

quote

Online Tools: Sign up to gain access to:

-Real time satellite tracking of your freight anywhere via your computer or mobile device!

-Scheduling a pickup online

-Retrieving documents online

-Printing a BOL

-And much more!

Sign up today at http://www.vlmtools.com/trucking/login.php?a=19.

Company News/Blogs: Stay informed with the latest news in the trucking industry, awareness campaign articles, and company news at http://www.roadscholar.com/blog/.

blog

Live Mapping of Equipment Availability Areas so you know where are vans and reefers are currently located at http://www.roadscholar.com/equipmentavailability.php

Employment Opportunities: Want to become part of a winning team that strives for excellence?  Then visit http://www.roadscholar.com/employment.php.  Here are some things Road Scholar has to offer:

-A reputable carrier

-Excellent pay and benefits

-Flexibility in your work schedule (both part-time and full-time positions available)

-Home time

-A great work environment

-Excellent equipment

-And the chance to make a difference

apply

Testimonials-Don’t take our word for it.  View testimonials from freight and auto hauling customers just like you about our service at http://www.roadscholar.com/freighthaulingtestimonials.php

Join our Mailing List so never miss contests, special discounts, and trucking industry news.

mailing list

Verify Driver ID Badges via Regiscope

Contests and Games: Check back often for new contests and games to be posted for your chance to win prizes!  Featured right now is Road Scholar’s NFL Challenge.  Whether you are a die-hard NFL fan or just trying to learn more about and get involved with the games, this is the contest for you.  Just  pick the winner of each game.  It’s that easy!  http://www.roadscholar.com/nfl/ Other popular annual contests include the NASCAR Challenge, PGA Challenge, and March Madness.

football pool

Quick access to our social media sites by clicking the blog, Twitter, Youtube, Facebook, and LinkedIn icons at the bottom of the page.  Follow us regularly to be informed of contests, special discounts, and trucking industry news.

Awareness Campaign: Road Scholar has vowed to travel ten million miles, spreading awareness of the many diseases/conditions battling lives today, through the use our trucks’ rolling billboards.  View pictures of our awareness trailers and learn more about Road Scholar’s Ten Million Miles to a Cure Campaign at www.roadscholarawareness.com.  Our awareness trucks currently include:

-Alex’s Lemonade

-Autism Speaks

-American Breast Cancer Foundation

-Children’s Tumor Foundation

-Prostate Cancer Awareness

-International Rett Syndrome Foundation

-St. Joseph’s Center

-American Foundation for the Blind

-Cystic Fibrosis Foundation

-Pancreatic Cancer Action Network (PANCAN)

-The Flight 93 National Memorial

-The American Red Cross

-Clayton’s Hope (benefiting epilepsy)

-Children’s Craniofacial Foundation

-Make a Wish Foundation

-Children’s Cancer Recovery Foundation

-Northeast Regional Cancer Institute (Rock on Judi H)

-Stop Bullying

-Parkinson’s Disease

-Marley’s Mission

-9/11 Rolling Memorial

-Miracle for Ava…a Cure for Brain Tumors

-Lyla’s Hope-Spina Bfida

awareness campaign

While your at our Awareness site, don’t forget to play our Awareness Matching Game at http://www.roadscholar.com/contestgames.php and send an awareness e-card. There are times in everyone’s life when something unfortunate happens to someone we love and we wish we could have done something about it.  Show someone you care by sending them an awareness e-card, demonstrating to them how much they mean to you and reminding them to get a check-up.  Currently, there are awareness e-cards for the following organizations:  American Foundation for the Blind, Alex’s Lemonade Stand, Autism Speaks, American Breast Cancer Foundation, Children’s Tumor Foundation, Prostate Cancer, St. Joseph’s Hospital, International RETT Syndrome Foundation, Pancreatic Cancer Action Network, Cystic Fibrosis Foundation, and the Flight 93 Memorial.  Send one today at http://www.roadscholarawareness.org/awareness-campaign/tell-a-friend/.

We are constantly working on building our site to reflect the needs of our customers so check back often for new tools and options!

Enforcing the Guidelines: Nearly 300 Drivers Removed in FMCSA Annual Drug and Alcohol Sweep. Are You Conducting Proper Testing?

Friday, June 29th, 2012
alcohol-related crash fatalities

According to www.bts.gov, there were 13,365 alcohol-related crash fatalities in 2010.

Did you know…“Every two hours, three people are killed in alcohol-related highway crashes.”1 That’s over 13,000 fatalities annually not to mention over 4 million Americans who drive under the influence each year.

The Federal Motor Carrier Safety Administration has been cracking down on drivers operating while under the influence and promoting safety in their annual drug and alcohol sweep which took place from April 30th through May 11th.

During this sweep, which analyzed the safety records of commercial bus and truck drivers, authorities removed 287 drivers from the road with an additional 128 companies facing action.2

Investigators found that several of the drivers tried to dodge drug and alcohol testing as well as notifying of past reports by switching employers.3 Several companies were cited for using drivers who had tested positive as well as never applied a test procedure policy to their company.2

Road Scholar Transport implements a drug and alcohol testing program.  Not only do we drug test every new hire, but 50% of drivers of every year, as well as IF there is an accident where a vehicle is either towed or resulted in an injury.  In fact, Road Scholar maintains NO controlled substances and alcohol violations in our CSA score.

Drivers and carriers caught in the FMCSA’s sweep are looking at a fine as well as being banned from operating a truck.  As the FMCSA’s Anne Ferro explains, “”Removing these dangerous drivers from the roads helps save lives and sends a strong signal that we will not tolerate negligent commercial drivers and companies that violate federal alcohol and drug safety standards.” 2

The FMCSA guidelines of drug & alcohol include (provided by http://www.fmcsa.dot.gov/rules-regulations/topics/drug/engtesting.htm):

-Mandatory drug and alcohol testing for CDL drivers.

-Post-accident, reasonable suspicion, random, and return to duty/follow up alcohol testing.

-Pre-employment, reasonable suspicion, post-accident, random, and return to duty/follow up drug testing.

-Responsibility rests upon the employer to conduct random and spontaneous drug tests on at least 50% of their drivers annually.

To view the FMCSA’s complete alcohol and drug rules click here.

As an advocate of driver safety on the road, we are providing you with ten ways that carriers fail to comply with drug and alcohol mandates so you know what steps to avoid citations.  (The following information is provided by Work Truck Magazine)

1.  Failing to Implement a Program

2.  Failure to decide to test the appropriate people

3.  Failure to “establish or maintain a random selection process.”

4.  Failing to test a driver prior to employment or allowing a driver to operate the truck before receiving test results

5.  Ignoring past occurrences in which the driver tested positive.

6.  Failing to test within the 8 hour deadline after an alcohol related accident and 32-hours after a drug-related.

7.  Failing to retain records

8.  “Many carriers – and medical examiners – automatically request a DOT drug screen when a driver renews his or her medical certification. “Other,” “annual,” or “recertification” is not a required DOT test type. Testing under this circumstance is actually a violation of §382.113 (misrepresentation) and could result in potential liability, especially if the results are positive.”

9.  Giving drivers advanced notice of a test.  Instead, they should be take immediately to the testing site.

10.  “Driving under the influence of drugs or alcohol in a personal vehicle affects the CDL based on §383.51, but has no bearing on a driver’s participation in a DOT drug and alcohol testing program. A driver cannot be forced to undergo an SAP program since it is not mandated by the FMCSA. However, a conviction resulting from operating a CDL vehicle is “actual knowledge” and is a violation under Part 382.

What are you doing to adhere to the FMCSA’s guidelines on drug and alcohol testing?  Are the guidelines strict enough or should they be altered?  List your comments below.

1http://www.bts.gov/publications/drunk_driving_by_the_numbers/index.html

2http://www.truckinginfo.com/news/news-detail.asp?news_id=77316

3http://www.ttnews.com/articles/basetemplate.aspx?storyid=29616&t=FMCSA-Removes-287-Drivers-in-Drug-and-Alcohol-Investigation

Retiring Truckers Put Pressure on Driver Shortage, Rising Logistics Costs

Wednesday, June 20th, 2012

After reaching a high of 1.8 million in 2008, carriers and shippers began experiencing a shortage of drivers due to the recession, in which a lot of drivers exited the business, dropping numbers as low as 1.47 million (18.4%) in 2010 and creating a tightening capacity shortage in the industry.

With the average driver being 51-years-old, trucking companies are having trouble finding new, qualified drivers to replace those who have retired.  As Carolina Trucking Academy owner Charlie Gray explains, “You have drivers retiring every day.  For every driver that goes out the back door, you better have a driver coming in the front door.  There’s not a lot of people coming in the front door.” 1

And Gray is right.  As the U.S. Department of Labor reported, last month there was a gain of only 69,000 non-farm jobs, with over half of them being in transportation/warehousing. 2 However, there is still a current shortage of more than 200,000 workers.

Although the demand for drivers in the trucking industry is high, there are barriers preventing the younger generation for applying.

One of these barriers is age.  With drivers needing to be at least 21 years old to travel out of state, many people graduating high school choose to further their education in a particular field/begin a career rather than waiting several years to drive a truck.

Besides age, the cost of training, which averages $4,000 to $6,000 for a month to 6 weeks of driver school, acts as a barrier as well.  Although many of these drivers are reimbursed by nationwide carriers for their schooling, they still need to put the money out initially or get a loan. 1

But as the Commercial Vehicle Training Association’s Cindy Atwood explains, it pays off with entry-level drivers making between $38-40,000 a year.  “That’s a pretty good story. And that job can’t be outsourced.” 1
Still, a lack of interested and qualified drivers is not only causing capacity issues to grow, but costs as well.  According to the State of Logistics annual report, “logistics costs rose 6.6 percent in 2011 to $1.28 trillion,” affecting “fuel prices, insurance premiums and driver wages.” 3

With increased costs and not enough drivers to transport the freight, carriers are reducing their fleets, and therefore, charging higher rates (between 5-15%) to account for tightened capacity and increased driver wages.  Shippers are then faced with the question, do I pay more to move my product or have my freight sit, jeopardizing their reliability and relationship with the customer.

In order to attract drivers to their fleet, carriers are competing with wages, bonuses, and other incentives, with driver turnover reaching the highest it’s been (90% among large fleets) since 2008, according to the American Trucking Associations.

With strong competition among carriers in an attempt to fight capacity issues, drivers are witnessing many employment options and are given the opportunity to become more selective of who they work for.

But how do you choose the right company?  Road Scholar Transport is providing you with a list of questions to ask when making your decision.

Road Scholar

-Do they operate safe equipment?

-Do they conduct the proper maintenance procedures?

-Are they at risk of closure/being shut down?

The above three questions can help be answered by checking out the carrier’s CSA rating. By doing so, you will be granted access to a company’s vehicle maintenance record, out-of-service issues, accident record, alert statuses, and much more.

To view a carrier’s CSA score, take the following steps:

Go to the FMCSA website-www.fmcsa.dot.gov

Click on Safety & Security

Click on Company Safety Record

Click on Safety Fitness Electronic Records System

Click on Company Snapshot

Enter Carrier’s DOT, MC number, or Name

Click on SMS Results…Remember, a score of 65 or above is of alert status

-Does the company treat you with respect? Does the company offer a non-discriminatory workplace?  Are they understanding of your personal needs and offer home time/flexible schedules?  Is the operations team friendly, courteous, and knowledgeable?

-Are you rewarded for your work ethic? Does the company offer safety bonuses, reward you for positive customer feedback, provide you an excellent wage, and grant you a comprehensive benefits package?

By asking yourself these questions, you can help find the carrier that best suits you.

Visit http://www.roadscholar.com/employment.php to see all that Road Scholar offers and to apply for a Road Scholar Transport driving position today!

Want to help prevent your business from being affected by the capacity shortage?  Here are some tips:

*Stop bidding out your business year over year.  No one gets used to the “players.”  Instead, establish and grow your relationship with a specific carrier(s).

*With that being said, work hand-in-hand with carriers to schedule routine shipments.  If a carrier knows that a particular lane will run a specific time each week or month, they can schedule backhaul, cutting back on costs for both the carrier and shipper.

*If you do not have a load that ships on a specific time of week/month, it is best to plan your lanes ahead of time.  Giving carriers a day or more notice can help them position their equipment efficiently.

*It is also beneficial to add additional carriers in cases where your primary carriers do not have the availability.

As a truck driver, what do you look for when choosing a carrier?  List your comments below.
1http://www.charlotteobserver.com/2012/06/16/3321106/as-a-generation-of-truck-drivers.html

2http://www.heraldandnews.com/members/news/inside/article_e9db6bdc-b810-11e1-baba-0019bb2963f4.html

3http://www.proformative.com/news/1482232/logistics-costs-are-rising

New York/Maine Propose Toll Increases within Upcoming Months

Wednesday, June 13th, 2012

As of January 1st, we witnessed many states, among them New Jersey, Maryland, Pennsylvania, and Ohio, taking significant toll hikes.  Now, New York and Maine are proposing similar increases which many believe will lead to congestion, job loss, and increased costs for companies and consumers.

New York Thruway

According to reports, the New York State Thruway Authority is looking at raising tolls for commercial vehicles containing three axles or more by 45% and is currently looking for comments from the public.1

Maine will be releasing their proposal to the public at Auburn Hall next week which would call for a 26% toll increase.

But the question on many people’s mind is where this money will go.

Whereas many believed that costs would help pay for the replacing of the Tappan Zee Bridge, which stretches over the Hudson River, Thruway explains that separate financing would be used for the bridge project while toll costs would be used to repair damage as a result of trucks. 2

Maine Turnpike Authorities plan on using the York Toll Plaza increases, which will provide an additional $26 million annually, to pay for the cost of widening the turnpike eight years ago, along with “costs associated with the rebuilding of two Piscataqua River bridges, and maintenance and repairs to the northern end of the turnpike.” 3

But these costs affect everyone from carriers to shippers to consumers.

With the new hikes, the cost of a three-axle truck going from Buffalo to New York City would increase from around $88 to $127. 1 Cash tolls in ME would rise from $2 to $3 at the York booth, $1.75 to $2.50 at West Gardiner and New Gloucester booths, and $7 to $10.63 for 5-axel trucks at the New Gloucester booth with EZPass drivers seeing increases of about 1.3 cents a mile. 4

Not only will trucking companies be raising their costs to account for these increases, but shippers/receivers will be trickling down the costs to their customers as well.

Besides increased costs of doing business, the NY State Motor Truck Association expressed the problem of congestion, as many trucks will result to roads in order to avoid tolls.

As Jack Schenendorf and Elizabeth Bell from Covington & Burling LLP stated, greater congestion on urban roads led to “4.8 billion hours of traveler delays and consumption of an additional 3.9 billion gallons of fuel in 2009.”

And with over 3.9 million truck drivers in the US and 97% of carriers being small companies operating 20 trucks or less, many cannot handle increased prices, operating with only a 1-2% profit margin to begin with, either not being able to compete with competitor prices, forcing layoffs, or worse, closure.

As one trucker responded to the tax increases, “I think that if truckers banded together, and slowed their speed down by about 20 mph across the board, in protest of the higher tolls, it would screw up traffic so bad, that something drastic would have to be done.  Trucks and trucking are the life blood of this country.  Every single thing that touches your life was transported by a truck…Some of these roads that have the high tolls are the bumpiest roads around.  Give me something for my money!” 5

The New York toll hike could go into effect as soon as September 30th while the Maine proposal would become effective on November 1st.

What do you think of the proposed increases for ME and NY tolls?  Do you feel that the money is being used to fund the proper issues?  List your comments below.

1http://www.truckinginfo.com/news/news-detail.asp?news_id=77106

2http://www.syracuse.com/news/index.ssf/2012/05/new_york_state_thruway_propose.html

3http://www.seacoastonline.com/articles/20120606-NEWS-206060323

4http://www.sunjournal.com/news/maine/2012/06/01/toll-hikes-proposed-maine-turnpike/1203996

5http://tow411.yuku.com/topic/113663

Holiday Weekend Reminds Shippers/Carriers to Use Caution

Friday, May 25th, 2012

This upcoming Memorial Day weekend serves as a reminder to members of the transportation industry/supply chain to be on alert and use extreme caution for cargo theft.

According to FreightWatch International, US cargo theft increases 28 percent during the holidays, mainly because cargo sits during the holiday weekend and, as we are well aware of, cargo at rest is cargo at risk, serving as a “sitting duck” for thieves everywhere.

THE FACTS

Cargo theft continues to remain a growing problem, with the number of incidents reported last year increasing 17%, up 180 incidents from the previous year, as cited in CargoNet’s 2011 theft report.  These 1,215 shipments stolen resulted in a loss of $130 million in 2011.1 Could your company take a loss like that and not even think twice about it?

TOP AT-RISK LOCATIONS

When looking at last year’s numbers, truck stops accounted for the greatest number of thefts, followed by warehouses/distribution centers, and parking lots. 1

Although cargo theft can occur anytime, anywhere, CargoNet lists the top 10 states that represented the highest reports of cargo theft in 2011 with New York and Indiana being new to the list.  The results were as follows (top ten states at risk represented with a star.  NY and NC tied in 10th):

states at greatest risk

WHEN

As mentioned earlier, cargo theft increases during the holiday season and graphon weekends when trailers await their Monday deliveries.  Looking at the ISAC’s graph on the right, 2012’s first quarter experienced 233 cargo thefts, with 79 occurring on Saturday/Sunday.  The middle of the week experienced the least number of thefts.

TOP COMMODITIES AT RISK

Last year, food/beverages made the spotlight as the greatest target among thieves followed by electronics; however, this year’s 1st quarter has shown a drop in stolen food products to the number two spot.  Ranking in as the current greatest commodity target …metals.

In fact, according to FreightWatch International, “cargo theft in the metal industry in the United States has increased 254%,” rising from “13 thefts in the fourth quarter of 2011 to 46 incidents in the first quarter of this year.” 2

INSIDER JOBS

Theft results in a loss of more than $30 billion in the transportation/shipping industry each year.  What’s even more stunning is that 85% or more of these thefts are a result of insider jobs, individuals who had the information/ability and used it for their own benefit.

Drivers have been known to stage their own hijackings, arranging to leave their trucks unattended at a specific time in which their accomplice then moves in, stealing the loaded truck in exchange for money.

Other drivers utilize what they know about a shipment/trucking company, not to steal the freight themselves, but rather distribute their information to thieves in return for compensation.

According to the Journal of Commerce, thieves “will also hire former drivers to carry out fraudulent pickups at warehouses because the drivers know the routine and the documentation that is needed.” 3

Road Scholar is helping prevent your risk of cargo theft with the following tips:

-Do not leave cargo unattended.  If necessary, be sure to the trailer is in a secure area.

-Vet out carriers and verify drivers prior to trusting them to handle your freight.

-Utilize trailers equipped with security features including satellite tracking, navalock, geo-fencing, and electronic door monitoring.

As a shipper, would you be interested in a free cargo security risk\threat analysis?  Reply below.

1http://www.scribd.com/doc/91929292/2011-United-States-Cargo-Theft-Report

2http://www.businessinsurance.com/article/20120424/NEWS07/120429952

3http://www.joc.com/supply-chain-management/cargo-thieves-increasingly-sophisticated-expert-warns