Posts Tagged ‘CSA 2010’

« Older Entries

Toll Increases Hit Pockets of Manufacturers/Carriers, Companies Lash Out

Wednesday, August 22nd, 2012

NY ThruwayLast June, reports noted the New York State Thruway Authority’s consideration of imposing a 45% toll hike on commercial vehicles, effective as early as September 30th, in an attempt to raise $85 million to repair damage caused by trucks.

The Thruway Authority held three sessions last week in Buffalo, East Syracuse, and Newburgh, accepting public comments on the toll hike which would require trucks with an E-ZPass to pay nearly $40 more and cash paying truckers $42 more for a trip from Newburgh to Buffalo. 1

Attendees, which included shippers, manufacturers, and carriers, lashed out against the tolls, noting the increase as “intolerable,” “unfathomable,” “a lunacy” and “ridiculous.” 2

Although some demonstrated their support towards the hike, including Midlakes Navigation owner Peter Wiles who said that the increase would “cost less than a ½ cent per pound for produce shipped on the Thruway,” several businesses noted the negative affects that the tolls would have on their company, employees, and customers. 2

One issue that came to light among carriers was the great impact the tolls would have on their net profit.  One trucking company acknowledged that they would be hit with a cost of nearly $660,000 due to the polls while another noted that the hike would deduct nearly a third of their profit. 2 As one carrier explained, “This could put us out of business,” expecting the tolls to affect half of his company’s net income. 2

To account for profit deficits, companies in return resort to lowering costs within, including eliminating pay raises for drivers who are in desperate need in the industry.  “I’ve got people in the back of this room waiting three and four years for raises,” one company owner noted. 2

Additionally, trucking companies are choosing to take alternate routes in order to avoid tolls, which could ultimately lead to greater congestion on roads and longer routes, eating up a driver’s hours-of-service.

Still yet, carriers are finding no choice but to raise their costs/fees in order to account for this hike, thus impacting shippers and manufactures.

As Byrne Dairy owner Carl Byrne explained, dairy farmers who pay shipping costs “are going to get squeezed.” 2 He is expecting to pay an additional $200,000 annually due to the toll hike.

But it’s not just the dairy industry that will be affected but all shippers utilizing the Thruway to ship their products.  One farmer made a dramatic impression when he held up an asparagus fern he sells for $2 explaining that he would need to grow 1,800 more to account for the additional $3,600 he would owe if the toll hike becomes affective. 1

Manufactures, especially those in the food industry, are therefore charging more for their products, trickling costs down to wholesalers, and ultimately, to consumers.

Likewise, the state of Maine is facing similar toll increases which would increase rates by 40% ($5 to $7) for those traveling the length of the Maine Turnpike, “$1 at the York toll plaza and by 50 cents at toll plazas in West Gardiner and New Gloucester.” 3

This toll, which the Maine Motor Transport Association deems as “necessary” given that the last increase occurred in February 2009 and would result in an additional $21.1 million annually, would become effective November 1st. 3

Calculate tolls costs for the NY Thruway at http://www.thruway.ny.gov/travelers/tolls/calc/index.html and current tolls on the Maine Turnpike at http://www.maineturnpike.com/Tolls/Cash-Toll-Calculator.aspx.

What circumstances do you foresee toll increases as having on your company?  On others?

In the past we introduced to you “The Perfect Storm for Capacity Shortage,” which correlates health care costs, credit markets, generation-x drivers retiring, CSA 2010, hours-of-service, fuel and equipment costs, and the lingering recession to the factors leading up to capacity shortage.

Do you think that increasing toll prices are the newest contributor the perfect storm?  List your comments below.

Perfect Storm for Capacity

1http://www.recordonline.com/apps/pbcs.dll/article?AID=/20120819/NEWS/208190323

2http://www.syracuse.com/news/index.ssf/2012/08/opponents_speak_out_at_thruway.html

3http://www.thetrucker.com/News/Stories/2012/8/17/HighertrucktollspartofnewMaineturnpikerates.aspx

Tags: , , , , , , , , ,
Posted in Trucking Industry News | Comments Off

Pharmaceutical Industry Seeks Stricter Regulation of Dry Pharma Products as Medical Device Recalls Surge this Year

Wednesday, May 16th, 2012

Thermal blankets/packaging, polyurethane containers, temperature-controlled trailers…all measures taken by shippers to help ensure the proper transport conditions of temperature-controlled shipments.

But, as industry experts explain, “Today, temperature controlled transportation of products using cold chain facility is only ensured for the distribution of vaccines and some pharmaceutical or biological products through thermal and refrigerated packaging methods to protect the products from loosing their effectiveness.” 1 But what about dry pharma products?

Did you know that polypropylene syringes can easily break in high temperatures?  And when exposed to conditions under 50°F, latex gloves can become stiff, and likewise, under excessive heat, cause rapid rubber degradation?

In fact, according to the US Food and Drug Administration, close to 82 million units of medical device recalls occurred in the first quarter of 2012, “representing a 508 percent increase over the previous quarter and recording a five-quarter high.” 2 These recalls include needles and gloves (as mentioned above) as well as catheters and alcohol prep pads, with many being repeat offenders. 2

Now the industry is fighting back, asking the government “to take initiative to push for better implementation of regulations of the non cold-chain based supply chain management of pharma products,” stating that “even the dry pharma based cargo should be transported only under strict temperature controlled environments to ensure sustainability of the pharma products from volatile conditions.” 1

As Mike Rozembajgier, vice president of recalls at Stericycle ExpertRECALL, explains, “Companies should be doing everything possible to minimize the safety concerns that would result in recalls.” 2

According to experts, many companies are putting their products at risk by not following current regulations and suggest “stronger use of track and trace systems.” 1

Not only is the company impacted through the loss of the discarded shipment, but inspection costs, brand equity, their reputation with the customer, and consumer health alerts.  By utilizing technology such as the track and track capability, remote locking devices, and electronic door monitoring, such as those installed on Road Scholar’s fleet, a shipper can minimize their risk of due diligence.

Due diligence is “the care a reasonable person should take before entering into an agreement or a transaction with another party.”3 When something goes wrong, the shipper can then face vicarious liability.

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.”4

In order to help reduce your risk of vicarious liability, we are providing you with the below video demonstrating seven easy steps for vetting out carriers through the CSA 2010’s Safety Measurement System (SMS).  By taking 90 seconds of your time and learning how you can vet out carriers, you can save thousands, even millions, worth the stolen, damaged, or recalled products during transport.

csa

1http://pharmabiz.com/NewsDetails.aspx?aid=68972&sid=1

2http://www.marketwatch.com/story/medical-device-recalls-soar-during-first-quarter-expertrecall-index-shows-2012-05-14

3http://www.investopedia.com/terms/d/duediligence.asp#ixzz1ihFuF6KN

4www.qualifiedcarriers.com/why-risk-management.aspx

Tags: , , , , , , , , , , ,
Posted in Services, Trucking Industry News | Comments Off

Responsibility No Longer Rests Solely on Carriers…Shippers at Risk of Vicarious Liability

Thursday, March 22nd, 2012

Could you ask your boss for 23 million dollars?  In 2004, C.H. Robinson, a third party logistics provider, contracted Dragonfly Express to transport a shipment for one of their customers.  The driver, however, was negligent, falsifying logbook entries and driving at an unsafe speed, resulting in an accident that caused two fatalities and a serious injury. 1 Despite C.H. Robinson arguing that they were “not responsible for the actions of an independent contractor or its driver,” the court found the driver, Dragonfly Express, and C.H. Robinson responsible in sharing a verdict of over $23 million. 1

But was the third party provider really at fault?  According to a doctrine known as vicarious liability, the answer is yes.  On top of that, you, the shipper, could also be at fault.

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. 2

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. 2 In 2004, however, this changed in a court case known as Schramm v. Foster.

This case is representative of many instances today.  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.


This case was the beginning of many changes in regards to who is found liable in an accident. And if you think that you, the shipper, are safe because your carrier has liability insurance, you’re wrong.  Known as vicarious liability, the shipper, who acted as a principal in hiring the carrier, becomes liable for that carrier (or broker)’s conduct which they had a “right to control.” 2

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.”  2

So how can you prevent vicarious liability?  By utilizing the CSA 2010’s Safety Measurement System (SMS).

Here’s how it works.  SMS scores a carrier and driver’s safety performance in seven BASIC categories, ranking 0-100 with 100 being the worst.  Those trucking companies generally scoring a number of 65 or above are considered a risk and placed on “alert” status, yielding a yellow caution triangle next to the deficient category alerting of a score that surpasses what is considered to be safe.  Insufficient scores are based on whether the carrier is a passenger, Hazmat Certified, or Other-which includes most trucking carriers.  Scoring reflects a carrier’s BASIC scores compared to other carriers in their group.  The scoring/categories are as follows:

-Unsafe Driving: ≥50 (passenger), ≥60 (HazMat), or ≥65 (Other).

-Fatigued Driving (Hours of Service): ≥50 (passenger), ≥60 (HazMat), or ≥65 (Other)

-Driver Fitness: ≥65 (passenger), ≥75 (HazMat), or ≥80 (Other)

-Controlled Substances/Alcohol: ≥65 (passenger), ≥75 (HazMat), or ≥80 (Other)

-Vehicle Maintenance: ≥65 (passenger), ≥75 (HazMat), or ≥80 (Other)

-Cargo-Related: Not available to public

-Crash-Indicator: Not available to public

Knowing a carrier’s safety scores before trusting them with your freight can greatly reduce the risk of an accident or damage.  Take for example last Friday when Lancaster, PA based D.A. Landis Trucking admitted to falsifying driver logs along with “selling condemned milk” which contained “excessive antibiotics and was ordered to be destroyed” to a NJ cheese company, charges which the owner now faces a maximum 5-year jail sentence for as well as a hefty fine. 3

Looking at D.A. Landis Trucking’s CSA rating, a shipper can quickly notice a score of 79% in the vehicle maintenance category, including several out of services for inoperative/defective brakes, steering system components worn/welded/missing, brake tubing and hose adequacy, unsafe operations forbidden, and many more.  Compare that with Road Scholar’s vehicle maintenance score of 27.6%.  Which truck would you rather have your products aboard?

Road Scholar Transport understands the importance of choosing a safe carrier to protect your freight.  That’s why we are giving you 7 Easy Steps on how to check/vet out carriers:

-1.  Go to the FMCSA website-www.fmcsa.dot.gov

step1

click to enlarge

-2.  Click on Safety & Security

step2

click to enlarge


-3.  Click on Company Safety Record

step3

click to enlarge

-4.  Click on Safety Fitness Electronic Records System

step4

click to enlarge

-5.  Click on Company Snapshot

step5

click to enlarge

-6.  Enter Carrier’s DOT, MC number, or Name

step7

click to enlarge

-7.  Click on SMS Results…Remember, a score of 65 or above is of alert status

step8

click to enlarge

And while you are there, check out Road Scholar Transport’s carrier safety record.  Just type in Road Scholar’s name, MC#-516228 or DOT #-1338719.

Are you currently utilizing the CSA 2010’s Safety Measurement System?  Has a carrier’s scores determined whether or not you utilized them?  Why or why not?

1 http://knowledgebase.findlaw.com/kb/2011/Aug/329060.html

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

3 http://www.whptv.com/news/local/story/Lancasters-D-A-Landis-trucking-company-pleads/i4715ZARxEm0-t4px5zbQw.cspx

click for quote

Tags: , , , , , , , , , , , , , , ,
Posted in Services, Trucking Industry News | Comments Off

FTR Associates Outlook Predicts 5-6% Freight Rate Increase: What Shippers and Carriers Can Expect Within Upcoming Months

Friday, March 16th, 2012

Although the number of positions in the trucking industry surged last month, carriers and shippers are still facing struggles with driver shortage and will continue to do so for years.  In return, members of the supply chain can expect to see rate increases.  On a positive note, oil prices are predicted to return to equilibrium within the upcoming months.

Last week, FTR Associates announced their trucking outlook for the current year, stating an average truckload growth throughout 2012 of at least 4 percent. 1

As Manitoba Trucking Association president Tom Payne Jr. explained this week, “The trucking industry that will emerge from the recession will likely be quite different from the trucking industry that existed pre-2008,” since instead of the overcapacity and low rates experienced prior, capacity shortage will now lead to higher rates. 2

And if shippers weren’t already concerned about current carrier price increases, they are about to get worse.  FTR anticipates “freight rates increasing 5 percent to 6 percent annually through 2013.” 1

One of the reasons for capacity issues is not the lack of equipment (although equipment costs have gone up, making it more expensive to expand or replace older equipment) but rather the shortage of drivers to deliver the freight.

According to the Bureau of Labor Statistics, trucking companies created an additional 10,200 jobs in February, the largest monthly gain since last February and accounting for an increase of 97,300 jobs since March 2010, a 7.9% raise. 3

But despite this, the industry is still currently facing a shortage of nearly 200,000 drivers which is expected to increase four times by 2014 to 800,000.

As Noel Perry, FTR Senior Consultant explains, “We go from very small hiring requirements to very large hiring requirements. It is unlikely that anybody’s hiring capacity can expand fast enough to keep up, partly because fleets lowered hiring due to the recession.” 4 And as he explained, there are currently 13 agendas for stricter regulations that would affect an already slim driver pool.

Just last week, the Federal Motor Carrier Safety Administration decided to go back on a proposal that would assess who was at fault in crashes in conjunction with the carrier’s CSA rating, due to concerns with “using just the Police Accident Report and a carrier’s statement to determine crash accountability,” instead of taking into account other input such as witnesses. 5

And with other mandates such as environmental regulations and technology requirement costs, smaller companies will have a harder time keeping up with larger carriers. 2 MTA executive Bob Dolyniuk explains, “I know of situations where smaller companies are approaching bigger ones asking to be bought out.” 2

Take for example Fil-Mor Express Inc., who advised employees that they would be closing their doors just days before Christmas.  Their rival, Dart Transit Company, quickly began attempting to recruit their drivers.

Drivers, shippers, and carriers are aware of this shortage and are taking measures to cope.  Drivers are becoming choosier over which company they decide to work for.  Carriers realize the competition and need for drivers and are offering higher wages in order to recruit them.  And shippers are working with multiple carriers to move their freight instead of relying on a single trucking company in order to increase coverage (many carriers operate only under certain territories, some don’t have the availability in the areas they do service, etc.).  How many carriers do you utilize?

Capacity is not the only reason for increasing rates, however.  Rising costs in conducting business are a great factor as well.  For instance, the national average price of diesel continues to rise, currently at $4.12.  But Perry offers some hope believing that “The situation with Iran will simmer down in three to four months and prices will return to equilibrium.” 4 Do you agree?

Below is what Road Scholar considers to be eight main factors building up to a Perfect Storm for Capacity Shortage.  These include the following:

1.  The Cost of Healthcare which the journal HealthAffairs stated is expected to grow 5.8% each year for the next decade.  The increased cost will deter new employers in the trucking industry.  Not only this, but those already purchasing health care for their employees are expected to make changes.  1/5th of business owners expect to significantly alter their benefits packages upon renewal while 12% plan to cut their health plans completely.

2. Credit Markets are tightening, causing trucking companies to keep fleets small due to the difficulty they are having qualifying for a loan, while others are forced to close their doors for good and sell their assets.

3. Gen-X Drivers are Retiring. With 1/6th of drivers being at least 55-years-old (and with the average age being 51 years), those retiring pose a risk of further capacity shortages…fewer drivers = fewer trucks transporting freight.

4. CSA 2010.  New safety restrictions set to remove unsafe drivers from the road in order to reduce the number of accidents and fatalities is argued to come at a price…capacity.

Instead of carriers being rated under the SafeStat system, which rates trucking companies based on four categories (driver, vehicle, safety management, and accident), both carriers AND drivers are now evaluated under seven Behavior Analysis and Safety Improvement Categories (BASICS).  These include: unsafe driving, fatigued driving, driver fitness, controlled substance/alcohol, vehicle maintenance, cargo-related, and crash indicator.

Many believe that those drivers who are looking for work fear that they will have a hard time obtaining employment due to past occurrences and carriers are complaining about high CSA crash scores reflecting accidents in which their trucks were not at fault.

5. Hours of Service Restrictions. Lawsuits arguing over a reduction of a driver’s hours of service from 11 to 10 hours would, if passed, lead to less productivity, for drivers will be restrained to how far they can travel/how many loads they can deliver without breaking their hours of service.

6. Fuel Cost. With the price of diesel surging, owner operators cannot afford for their fuel costs to exceed that of which they are being paid to haul the load in the first place, placing many out of service.

7. Cost of Equipment is up 20% and with greater capacity demands and the need to replace older equipment, carriers are purchasing new trucks for their fleet.  Four years ago, the cost of a power unit was roughly $108,000.  Now, purchasing one of these will cost you around $133,000.  Don’t forget to buy a trailer on top of that!

8.  2008 and Lingering Recession: In 2009 we witnessed 800 trucking companies go out of business, leaving many of these workers to find jobs in a different industry…adding to the driver shortage.

Road Scholar Transport recommends that the following diagram exhibiting each of the above points be presented to a shipper’s management in order to help better prepare for and understand increasing costs and capacity restraints.

perfect storm

What measures have you, as a shipper, been taking to avoid capacity shortage?  List your comments below.

click for quote

1 http://www.overdriveonline.com/ftr-forecasts-higher-growth-driver-pay/

2 http://www.winnipegfreepress.com/business/cost-of-shipping-set-to-rise-truckers-142592236.html

3 http://www.overdriveonline.com/10200-trucking-jobs-added/

4 http://www.truckinginfo.com/news/news-detail.asp?news_id=76322

5 http://www.truckinginfo.com/news/news-detail.asp?news_id=76326

Tags: , , , , , , , , , , , , , , , , , ,
Posted in LTL Freight Quotes, LTL freight, Services, Trucking Industry News | Comments Off

Brokers/Carriers Losing Business as More Shippers Choose Carriers Based on CSA Scores

Thursday, January 12th, 2012

CSA 2010CSA 2010’s Safety Measurement System (SMS), which scores carriers and drivers’ safety performance in seven BASIC categories (Unsafe Driving, Fatigued Driving/Hours of Service, Driver Fitness, Controlled Substances/Alcohol, Vehicle Maintenance, Cargo-Related, and Crash-Indicator) placing those considered a risk on “alert” status, has had members of the trucking industry arguing over a flawed system.  This disapproval has grown by many brokers and carriers who are complaining that they are losing significant business with some of their major accounts due to their safety scores.

Not only are carriers losing business, but brokers are being held responsible for not researching the safety scores of the carriers they vet out.  If they did they would find Road Scholar Transport to have an excellent safety rating with zero alerts and no controlled substance/alcohol violations.  Check out how Road Scholar scored in each category at http://ai.fmcsa.dot.gov/SMS/Data/carrier.aspx?enc=Y8fZXERG1J+xGf6mXx3ODG9066yI6×3GHlkVnRjszjw=.

The search for finding the cheapest rate often results in choosing unsafe carriers to haul a shipper’s freight, but with the CSA 2010, shippers are becoming more aware of the process, discontinuing business with many 3pls who do not use safety measures when choosing carriers.

As Transport Topics notes, some brokers have lost thousands of shipments for this reason, defending their SMS scores  stating that “shippers impose unrealistic contract requirements based on the SMS scores that bar using a carrier that has even a single infraction,” claiming that the system “unfairly taints fleet safety records.”

Brokers and truckload carriers objecting to the SMS process also did so believing that “safety should be judged by FMCSA’s professionals rather than clerical workers” (http://www.ttnews.com/articles/basetemplate.aspx?storyid=28458).

While trucking companies are being turned down for their CSA scores, Road Scholar Transport continues to provide top LTL and truckload services for our customers.  Besides low SMS scores, Road Scholar has never been cited for a piece of faulty equipment in an accident and with over 31,000 delivers in 2010, only had 3 damage claims.  That’s a ratio of 0.0003%.

Experience the safety and security of knowing that your freight is in good hands by visiting www.roadscholar.com today.

Do you feel that more and more carriers and brokers will lose customers/perhaps even shut their doors due to shippers choosing more secure carriers based on SMS scores?  List your comments below.

click for quote

Tags: , , , , , , , , , , , , ,
Posted in LTL freight, Services, Trucking Industry News | Comments Off

Survey Finds 73% of Carriers Holding Off on Growing Fleet Capacity Due to Low ROIs

Wednesday, January 11th, 2012

The recent recession took out 15-20% of capacity in the trucking industry and despite 61% of carriers expecting volumes to grow this year, trucking companies are not planning on adding capacity to accommodate these changes.

Transport Capital Partners (TCP)’s 4th Quarter 2011 Business Expectations Survey, published each quarter, lists three factors that are causing carriers to resist growing their fleets, among these operating ratios, low return on investment, and shortage of drivers.

According to the survey, over half of carriers participating in the survey (73%), acknowledged that they would not expand their fleets until their return on investment (ROI) improves, which they believe would be accomplished through better rates.

Low ROIs are a problem many carriers are facing due to the increasing cost of equipment, healthcare, and diesel fuel, as well as the difficulty qualifying for a loan, and despite rate increases, many companies are barely breaking even.

As a result, many companies have set an operation ratio they must obtain in order to succeed in gaining a ROI sufficient enough to invest in new trucks, with 25% setting a range of 87-90 and 50% acknowledging a range of 91-94 (http://www.truckinginfo.com/news/news-detail.asp?news_id=75729).

The majority of trucking companies who did claim to be making a plausible ROI consisted of larger carriers making ≥$25 million in revenue.

But these are not the only factors preventing carriers from growing their fleets. According to the TCP survey, 70% of carriers admitted that they do not have enough drivers to fill the trucks they currently do have, let alone invest in purchasing more. And with stricter rules and regulations, including CSA 2010, carriers who are investing on new equipment are doing so to replace old ones.

Road Scholar Transport operates newer equipment and safer trucks on the road. In fact, we have never been cited for a piece of faulty equipment involved in an accident due to routine pre-trip and post-trip maintenance checks and an experienced staff. Learn more about Road Scholar’s ability to safely transport your freight by visiting www.roadscholar.com.

Have you noticed fewer carriers purchasing trucks due to low ROIs and driver shortages? List your comments below.

click for quote

Tags: , , , , , , , , , ,
Posted in Trucking Industry News | Comments Off

Due Diligence and Brand Equity Among Risks You Could be Facing…..Are You Checking Your Carrier’s CSA Scores?

Friday, January 6th, 2012

Danger alert!  Every time you ship a product, regardless of its commodity, you are putting your brand equity and finances at risk.  Make that shipment one that contains food/beverages, pharmaceuticals, or chemicals and you now have the issue of consumer health/safety to worry about with improper temperature conditions contaminating products and accidents involving hazmat materials posing as harmful risks to consumers.

Knowing the dangers of having inadequate carriers transporting your freight has caused the Federal Motor Carrier Safety Administration to put into effect CSA 2010, which monitors carriers and drivers for compliance.

CSA 2010

Road Scholar CSA scores

CSA 2010’s Safety Measurement System (SMS) scores a carrier and driver’s safety performance in seven BASIC categories, placing those who pose as a risk on “alert” status, yielding a yellow caution triangle next to the deficient category alerting of a score that surpasses that considered to be safe.

Ranking from 0-100 (100 being the worst), CSA 2010 has changed the scoring of deficiency from 75 and above to a lower number based on whether the carrier is a passenger, Hazmat Certified, or Other-which includes most trucking carriers.  Scoring reflects a carrier’s BASIC scores compared to other carriers in their group.

The following depicts the score a carrier would need to have to be placed on alert status in each of the BASIC categories:

-Unsafe Driving: ≥50 (passenger), ≥60 (HazMat), or ≥65 (Other).

-Fatigued Driving (Hours of Service): ≥50 (passenger), ≥60 (HazMat), or ≥65 (Other)

-Driver Fitness: ≥65 (passenger), ≥75 (HazMat), or ≥80 (Other)

-Controlled Substances/Alcohol: ≥65 (passenger), ≥75 (HazMat), or ≥80 (Other)

-Vehicle Maintenance: ≥65 (passenger), ≥75 (HazMat), or ≥80 (Other)

-Cargo-Related: Not available to public

-Crash-Indicator: Not available to public

Unfortunately, many shippers do not utilize CSA 2010 when vetting out which carrier(s) to transport their freight, facing serious consequences that could have been avoided with the click of a button.

The Risks

You’re one of those companies who takes pride in saving money by auctioning off lanes in order to find the cheapest rate.  So you utilize a 3rd party, who then contracts a carrier to deliver your freight.  You, however, did not know that this 3pl, like many others, does not always vet out drivers beforehand, checking their CSA scores.  Therefore, your 3pl has now contracted a carrier who, would they have checked, would have found out had several alert statuses against them.  This carrier, who is now carrying your freight, gets in an accident and a picture of your product spilled across the road is displayed on the news, ruining your brand equity and the reputation you spent years building.  Viola.  You are now facing due diligence.

Simply put, due diligence is “the care a reasonable person should take before entering into an agreement or a transaction with another party” (http://www.investopedia.com/terms/d/duediligence.asp#ixzz1ihFuF6KN).  Did you do enough to make sure the carrier you chose was qualified?

It is your responsibility to put your freight onboard a qualified and safe carrier.  When trusting a 3rd party to find the cheapest rate, you are taking the chance of shipping with some unknown carrier who may be on an alert status in one or more of the CSA’s BASIC categories.  This not only puts your freight at risk, but poses a danger to everyone else on the road.

The saying stands…you get what you pay for but did you really save you a few dollars in the end or cost you thousands on liability along with a priceless reputation?

View Road Scholar Transport’s CSA Scoring at http://ai.fmcsa.dot.gov/SMS/Data/carrier.aspx?enc=Y8fZXERG1J+xGf6mXx3ODG9066yI6×3GHlkVnRjszjw=.

Would you ship with someone who had several alerts against them if you were receiving a cheaper rate?  List your comments below.

Tags: , , , , , , , , , , ,
Posted in Services, Trucking Industry News | Comments Off

Challenges the Trucking Industry can Expect to Face in 2012

Tuesday, December 20th, 2011

As 2011 quickly comes to an end, experts are providing their knowledge and input on what challenges the trucking industry can expect to undergo in the New Year.

Among these is the high price of diesel.  Although the national average of diesel has dropped 6.6 cents to $3.82/gallon, the lowest we have seen since Oct. 24th, prices have risen as high as $4.12 last May.  As the Department of Energy forecasts, “diesel fuel will average $3.73 per gallon in 2012,” which although is lower than we are currently experiencing, is still 25% higher than 2010 averages (http://www.dcvelocity.com/articles/20111219top_10_logistics_challenges_for_2012/).

Along with higher diesel prices comes rising truck rates.  According to Transport Capital Partners, LLC’s fourth quarter business expectations survey, 70% of carriers expect to raise their rates over the next year, while half of those surveyed have already done so.  Logistics Management explains that most major LTL carriers raised their rates this quarter by between 5.9 and 6.9 percent.

One of the reasons for higher rates is the current capacity shortage facing the industry.  With issues including the rising costs of healthcare and equipment (which is up 20% this year), new safety restrictions such as CSA 2010 and the Federal Motor Carrier Safety Administration’s hours of service proposal, the lack of available credit, generation x drivers retiring, and rising fuel prices mentioned earlier, many trucking companies are keeping their fleets small due to the difficulty they are having qualifying for a loan and keeping up with surging costs, while others are being forced to close their doors for good and sell their assets.  Learn more about the Perfect Storm for Capacity Shortage by clicking here.

unemployment rate

On top of capacity issues, the economy poses another challenge to the industry, demonstrating a weak growth period.  Unemployment rate fell to 8.6 percent last month, according to the Bureau of Labor Statistics, with trucking companies continuing to struggle with finding drivers to meet capacity issues.  Drivers looking for a rewarding career can apply here.

Experts also predict challenges pertaining to truck regulations in 2012.  In order to account for capacity shortages, The Safe & Efficient Transportation Act is encouraging raising the current 80,000 pound weight limit of trucks to 97,000 pounds. This, however, would only be acceptable on certain roads and only on trucks equipped with six axles instead of five, allowing the extra axle to account for the additional weight.

Among truck regulations includes a stronger effort to go green, decreasing gas emissions in order to achieve a cleaner, healthier environment, the way that Road Scholar Transport does with its new trucks, which give off 1/42 the amount of diesel particulate as the 2007 engines.

Finally, a stronger emphasis on security can also be expected in the New Year.  As DC Velocity states, “the idea of guaranteeing that every package and every container is safe boggles the mind,” but that’s what Road Scholar Transport aims to do.

Road Scholar Transport applies security features which include electronic door monitoring, reefer and power unit tracking, Qualcomm distress/panic messaging, roof decals for aerial tracking, navalock, facility security, and much more.

As a member of CargoNet, a group dedicated to theft prevention and recovery, Road Scholar Transport is continuously pushing the performance envelope with new products and technologies to keep your freight safe.

Visit Road Scholar’s University page on our website (www.roadscholar.com) for valuable information regarding cargo security.

What challenges do you feel the trucking industry will face in 2012?  List your comments below.

Tags: , , , , , , , , , , , , , , , , , , , , ,
Posted in LTL freight, Services, Trucking Industry News | Comments Off

Driver Turnover Hits 89% in 3rd Quarter

Tuesday, December 13th, 2011

ATAAccording to the American Trucking Associations (ATA), driver turnover has increased for the fourth quarter in a row.

The turnover rate for large truckload carriers increased from 79% in this year’s 2nd quarter (ranking in as the highest rate since 2008’s first quarter) to 89% last quarter, an article on fleetowner.com notes.

Although 2005’s fourth quarter holds the highest truckload turnover rate at 134 percent, driver turnover averaged 81% this year, increasing by 50% since 2010’s first quarter (http://fleetowner.com/management/news/driver-turnover-rate-tl-carriers-1213/).

Those truckload carriers considered small (bringing in under $30 million a year in revenue) increased in driver turnover as well, rising 10% to 57%.

On the other hand, the less-than-truckload’s driver turnover continued to remain low at 10%.

The ATA’s Bob Costello accounted for these changes stating that, “Clearly, due to the economic recovery, as well as regulatory factors like CSA, we are seeing the market for good, quality drivers tighten…As our tonnage index has shown recently, demand for freight continues to rise, so we expect the need for quality drivers to become more acute going forward, particularly if regulations either force current drivers out of the industry or force fleets to put more trucks on the road” (http://fleetowner.com/management/news/driver-turnover-rate-tl-carriers-1213/).

As Costello explains, new/stricter safety regulations, such as the CSA 2010 are taking unsafe drivers off of the road and are forcing carriers to close.  Besides that, drivers expressed their reasons for leaving a job in the Journal of Commerce’s CostDown Consulting study which included the following:

-Insufficient compensation/benefits:  Given that LTL drivers typically make more than truckload drivers ($58,000 on average compared to the $48,000 truckload drivers make, according to FTR Associates recent data), compensation would account for a smaller percentage of driver turnover than truckload drivers  (http://www.dcvelocity.com/articles/20111213high_driver_turnover_at_large_truckload_fleets/).

Road Scholar Transport compensates 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!

-Broken promises set forth upon hirement in regards to wages, bonuses, etc.

-Not enough home time:  Road Scholar (as a family-owned business) understands the importance of family, which is why we offer flexibility in work schedules, home time, as well as full-time and part-time opportunities so your personal life is not inconvenienced by work.

-Poor equipment/vehicle maintenance:  A company may be offering a hefty start-up bonus but what about the safety of the driver?  Under what conditions are they working with?  Vehicle safety is not something that can be left up to chance and could cost drivers wages due to being inoperable, or worse, cause an accident.  That’s why Road Scholar always conducts pre- and post-trip vehicle inspections, has a skilled maintenance team, and operates excellent equipment which includes new 2012 models.

-Little respect/honesty

-Poor communication

-Inability to provide problem resolution in the work environment:  Road Scholar’s drivers use equipment such as Qualcomm and Nextel direct connect to communicate with a friendly, courteous, and knowledgeable operations team who responds immediately to any concerns.

-Improper training

-Unclear/unfair work rules

Companies can draw in drivers through bonuses but can they maintain them?  If you are looking for a carrier in the trucking industry and are seeking the above criteria, then visit www.roadscholar.com and apply for a job today!

What’s most important to you when applying for a truck driver position?  Cast your vote/comments below:

-Compensation/Bonuses

-Home Time

-Respect

-Equipment/Vehicle Model and Maintenance

-Other (List comments below)

Tags: , , , , , , , , , , , , , , ,
Posted in LTL freight, Services, Trucking Industry News | Comments Off

Perfect Storm for Capacity Shortage Continues to Strike, Trucking Companies React

Wednesday, November 9th, 2011

The storm hovering over the trucking industry continues on, dropping capacity shortages in its path.  But let’s take a deeper look into the storm itself.

As fleetowner.com notes, a recent analysis conducted by Robert W. Baird & Co. shows that “freight volumes are continuing to slow,” while challenges facing the trucking industry are starting to increase, expected to grow “through the balance of 2011 and into the early part of 2012.”

diesel price chart

click for larger view

These issues include the rising costs of healthcare and equipment (which is up 20% this year), new safety restrictions such as CSA 2010 and the Federal Motor Carrier Safety Administration’s hours of service proposal, the lack of available credit, generation x drivers retiring, and perhaps the most well-known problem affecting consumers everywhere…rising fuel prices.

On a national average, the price of diesel fuel has increased nearly 17 cents per gallon within the last 30 days, which Fleet Owner’s article attributes to “tight global diesel supplies and increased production of home heating oil in the U.S.”  This data is verified by the Energy Information Administration’s graph on the right, which compares this year’s diesel fuel prices with last year’s.

All of these challenges are contributing factors leading up to a shortage in capacity as many trucking companies are keeping their fleets small due to the difficulty they are having qualifying for a loan and keeping up with surging costs, while others are being forced to close their doors for good and sell their assets.

At the same time, there are those carriers who are taking advantage of the shortage and adding to their fleets.  While small and medium-sized carriers are increasing their truck orders, larger carriers are playing it safe, leasing trucks instead of purchasing them in case the economy falls through.

Due to tight capacity, trucking companies and rising costs, carriers are increasing their rates.  As Baird transportation analyst Benjamin Hartford notes, “We expect broader domestic freight rate growth to continue to decelerate into the seasonally weak first quarter of 2012.  Though capacity constraints should support solidly positive rate growth in 2012, we believe 2 to 3% year-over-year (YOY) growth is likely, versus the 4 to 5% YOY contractual rate growth in recent quarters absent a demand catalyst” (http://fleetowner.com/management/news/freight-slowing-headwinds-growing-1108/).

If you find your freight sitting on your dock due to capacity problems, give Road Scholar Transport a call at 800-542-2301 or request a rate online by going to www.roadscholar.com.  Road Scholar Transport has the vans and reefer you need to move your LTL and Truckload freight, with expedited shipping to get your products where they need to be on time, every time.

What are your comments regarding the perfect storm for capacity shortage?  List them below!

perfect storm for capacity shortage

Tags: , , , , , , , , , , , , , , , , , ,
Posted in LTL freight, Services, Trucking Industry News | Comments Off

« Older Entries