Posts Tagged ‘transportation’

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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

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-2.  Click on Safety & Security

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-3.  Click on Company Safety Record

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-4.  Click on Safety Fitness Electronic Records System

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-5.  Click on Company Snapshot

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

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

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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

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Stories from a Sales Rep…Larry Lynch

Monday, November 14th, 2011

Larry Lynch

“What can I say, I’ve been here since dirt,” said Larry Lynch who sat down with me to discuss his experiences as a sales rep.

Larry has been with Road Scholar for 17 years now and one thing he has never shown to lack over the years is his sense of humor.

But when it comes to business matters, Larry sets all jokes aside.  He began to tell me about an instance from his job that he will always remember.

“Well, it was close to Christmas time,” he began, “and I was making a call on a company who was having issues at the time with their current carrier.  One of the things I asked him to do was to make a Christmas wish list of transportation-related problems that he would like changed.

Among these were on-time delivery and security issues.  He needed someone who could react immediately to their problems since they had a high valued product and could not wait.  You see, to them transportation cost is only a small percentage of their product cost so they are more concerned with the security of their product due to the high value of it rather than rates.

So he ended up faxing me the list and I sat down with Jim Barrett and we were able to come up with solutions to his problems.  Giving him what he wanted on his Christmas list [an on-time delivery guarantee, security features such as satellite tracking, electronic door monitoring, bolts and seals, and an excellent operations team that reacts immediately to a problem] led us to get what we wanted, the account.”

And that’s just one example of how Road Scholar goes above and beyond to give the customer what they want, how they want it, and when they want it.

So the next time you see Larry Lynch, be sure to give him your transportation wish list and watch how Road Scholar can make your wishes become reality.

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Widespread Food Contamination Demonstrates Need for Safe Transportation Practices

Monday, October 3rd, 2011

Any food manufacturer knows that one widespread case of contaminated food products can damage their company name, placing a hefty financial burden on them, sometimes resulting in a shut down.

As was the case in 2009 when salmonella was found in peanut butter manufactured by the Peanut Corporation of America.  With nine people dying and nearly 22,500 getting sick from eating the product, the corporation was forced to shut its plants in Georgia, Virginia, and Texas.

Along with a manufacturer’s reputation being ruined, comes a financial loss from suits filed by those who ingested the contaminated product, along with the loss of your freight.  Look at last year when over 500 million eggs were recalled due to salmonella.  Now that’s a lot of freight.

cantaloupe

Most recently, a case of contaminated cantaloupe has struck a widespread alert, already killing 17 people and causing more than 80 to become sick.  These cases have spread nationwide, found in 19 states including Colorado, Texas, Kansas, Maryland, Missouri, Nebraska, Oklahoma, Alabama, Arkansas, California, Illinois, Indiana, Montana, North Dakota, Virginia, West Virginia, Wisconsin, Wyoming, and New Mexico.

The Food and Drug Administration, however, explains how hard it is to track down the source of contamination due to multistops and traceability problems.

As Forbes notes, these cantaloupes alone could have made five stops, between packaging, distribution, processing, retailer, etc, before consumers even purchase it, and who knows how many more times the food has been handled by carriers.  Road Scholar Transport, on the other hand, cuts back on the handling of your products, which could lead to contamination, by offering 24-hour expedited service, dock-to-dock with NO transfers.

The FDA explains that “the more steps there are the harder it can be to link up each step to identify the source of an outbreak” (http://www.forbes.com/feeds/ap/2011/10/02/general-us-listeria-farm-to-fork_8712631.html).  With that being said, food associations are placing an emphasis on traceability throughout the supply chain.

One thing you can be assured of is that your food products did not get contaminated during transport when shipping with Road Scholar Transport.

reefertrak

Road Scholar can provide the exact route that the truck took with a time log noting every door opening/closing, temperature conditions within the trailer at any given time, and its exact location (right down to the breadcrumbs).

Do you know what was being transported before your products?  Was there garbage in the trailer previous to your food?  Or how about a chemical spill where your food is now placed?  Road Scholar can provide a history of what was inside our trailer prior to your shipment, prior to that shipment, and so on.  Talk about safety measures.

Over 48 million people develop illnesses from food contamination every year with nearly 3,000 dying from it (http://www.foodborneillness.com/).

Why risk your good name and the health of your customers by choosing the cheapest, most ill-equipped carrier to transport your freight?  Visit www.roadscholar.com to learn more about Road Scholar’s services and security features.

On a scale of 1 (“not at all”) and 10 (“very”), how important is it for you to choose a knowledgeable, safe carrier to deliver your food products?

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Retailers’ Expectation of Slow Consumer Spending for Holiday Season Could Backfire, Benefitting Trucking Companies

Wednesday, September 21st, 2011

presentsRetailers are holding off on stocking up for the holiday season due to current consumer spending statistics which, looking at past seasons, is one move that could prove detrimental as the holiday season approaches.

After gaining a smaller than predicted increase of 0.3% last July, U.S. consumer spending reached an unexpected halt in August, according to an article in Providence Business News.

A reason for this, the article explains, comes from a lack of consumer confidence, which has increased to its “second lowest level this year” as “the number of households saying it was a bad time to spend was the highest in three years.”

In return, the two largest ports in the U.S., Los Angeles and Long Beach, have seen a 9.4% decrease in volume coming into the U.S. when compared to last year’s statistics due to retailers being cautious of weaker holiday sales (http://www.pbn.com/Retailers-cautious-on-US-consumers-risk-holiday-shipping-rush-,61298).

The problem with this is that retailers now face the chance of being undersupplied as a result of being unprepared, as was the case back in 2009 when consumer spending took a drastic turn for the positive.

If the same situation arises this year, trucking companies could greatly benefit as retailers will pay more to get their freight expedited to their stores to account for the holiday rush.  In cases like these, shippers rely on Road Scholar Transport for delivery of their products the next day or even same day!  Just go to http://www.roadscholar.com/mileage/index.php?to_zip=&=Calculate&from_zip to quickly calculate your expedited shipping time.

Not only will retailers rely on quick transportation means, but trucking companies could expect to see an increase in shipments as well which, despite capacity issues, can cause carriers to outperform.

Road Scholar

If you find yourself in need of shipping your freight in the securest, most efficient way, all you have to do is remember three words: Road Scholar Transport.  Road Scholar offers 48’ and 53’ trailer availability, van and reefer service, expedited shipping, hazmat certified drivers, and reliable service.

Visit www.roadscholar.com for all your seasonal shipping needs.

Do you forecast consumer spending for the holiday season to be muted or do you foresee a surge?

want your freight there fast

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Capacity Shortages Have Manufacturers Paying More to Move Freight

Wednesday, August 17th, 2011

Manufacturers are seeing an increase in rates to transport their freight, whether it be by truck, rail, or air, with capacity shortages playing a large role.

truck, rail, air transport

Unfortunately, the rising cost manufacturers and shippers are experiencing is not predicted to get better any time this year.  With retiring drivers, new/stricter regulations, increasing fuel, equipment, and healthcare costs, a lingering recession, and a lack of available credit keeping fleets small, the trucking industry is experiencing the tightest crunch in capacity since 2005.

According to a recent survey, 74% of respondents noted an increase in transportation costs within the past year, with 64% noting a 1-10% raise and 10% stating an 11-15% jump (http://www.industryweek.com/articles/no_transportation_relief_in_sight_25323.aspx?SectionID=2).

In order to avoid higher costs, manufacturers are scoping out transportation companies, not based on their quality of service, but by who has the cheapest rates.  Those manufacturers who are looking to cut back on shipments by transporting via truckload rather than multiple LTL shipments are noticing a hard time finding the capacity to fulfill their requests.

Another way manufacturers are looking to cut back on increasing freight rates is to use trucking as their primary means of transport rather than rail and air.  In fact, Industry Week notes a decrease of 9% in air freight, dropping the number of freight transported via air from 14% to 5% within the last two years.

Even the rail industry cannot compare to trucking as a means of transport.  As listed in Industry Week, manufacturers are choosing truck over rail for the following reasons:

-“Rail doesn’t support faster inventory turnover.”

-“Rail isn’t competitive on price and service.”

-“Truckload price discounts have offset some of the rail cost differential.”

-“Companies are willing to pay more for truckload service.”

-“Changes in sourcing have reduced transportation costs.”

Road Scholar Transport

For a company who offers competitive LTL and Truckload rates, expedited shipping, and an impressive safety record, visit www.roadscholar.com and let Road Scholar Transport demonstrate our capabilities and expertise to you.

Have you been affected or are experiencing any differences due to capacity shortage?  What are you doing to deal with the issue?  Let us know by posting your comments below.

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Rising Number of Faulty Reefer Trucks Leads to Potential Highway Food Safety Enforcement Pilot Program

Thursday, August 4th, 2011

CCF41 degrees…the maximum temperature refrigerated foods must be transported in to prevent bacterial growth and contamination.  But authorities are finding a rise in the number of refrigerated trucks (reefers) failing to maintain regulatory temperature settings, especially during the summer months.

The problem grew to a larger concern when Indiana State Police found abnormally high numbers of trucks containing faulty refrigeration units or no refrigeration at all during  random checks (30% of the time) or citing the truck for another issue (70% of citations).

In response, Indiana police “innovated law enforcement solutions to take bad food loads off the road, before they make it to market,” in which case they can cause serious health risks to consumers, truckinginfo.com states.

It is still unclear why the number of improper temperature condition citations is so high, sometimes testing 67°F, but two main causes stand out:  1.  Poor maintenance habits and 2.  With the rising price of fuel many companies are shutting their reefer units off during transport and quickly turning them on again right before delivery thinking that it will acquire the necessary temperature (http://www.truckinginfo.com/news/news-detail.asp?news_id=74344).

reefer

Road Scholar Transport’s customers, however, have access to what the exact temperature was inside the reefer carrying their freight at any time, even months after delivery so you don’t have to worry about whether your products face a possible contamination risk due to improper transport.

In addition, the police face the problem of not being able to issue a citation for an out-of service reefer unit, in which case they have to call in the Department of Health, truckinginfo.com explains.  According to the article, police use a laser temperature gauge (used for testing the temperature of brakes) and call in the health inspectors if the reading is too high.

Indiana State Police have already destroyed tens of thousands of pounds of contaminated food products (http://www.truckinginfo.com/news/news-detail.asp?news_id=74334).  But if this is the case in Indiana, more than likely it is occurring nationwide, especially in warmer climates, which is why the police are considering creating a Highway food safety enforcement pilot program next year.

You can view the Food Safety and Inspection Service guidelines for the distribution/transportation of meat, poultry, and egg products at http://www.fsis.usda.gov/oa/topics/transportguide.pdf, which calls for safety measures including the sanitizing and proper maintenance of vehicles (not only does Road Scholar Transport do this, but can provide you with information on what type of product was in the trailer prior to your shipment) and security features (Road Scholar Transport uses Navalock, satellite tracking, ReeferTrak, electronic door monitoring, and more).

Learn more about how Road Scholar Transport can provide you with the services you need to keep your freight fresh and protected during transport by visiting www.roadscholar.com.

What is your opinion about the creation of a Highway food safety enforcement pilot program next year and what do feel needs to be done to prevent faulty reefer units from operating?  Comment below.

ship with a secure company

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As Technology Continues to Evolve, Road Scholar Stays on Top with Advanced Customer Tools

Thursday, February 17th, 2011

Here’s a secret.  There’s a little thing out there and it’s improving every day.  It’s called technology and it’s here to stay.

Jeff Sibio-Dir. Industry Marketing, Transportation & Logistics at Intermec Technologies, in an interview with Big Truck TV, acknowledged the fact that dramatic changes have occurred in the trucking industry over the last 15 to 20 years due to technology.

As Sibio noted, the trucking industry went from “bare most components like location” to “texting back and forth to the driver,” asking questions such as “Where are you?” or “What are you doing?” to tools that deliver a “much higher level of value,” such as voice, data, and imaging tools (http://www.bigtrucktv.com/item.aspx?t_tmw2010int004).

With evolving technology, Sibio explains that questions such as “Can I prove that I delivered the product in the same shape it was given?” and “Can I document all activities?” can now easily be answered “Yes” with Road Scholar Transport’s advanced technology features.ReeferTrak

When shipping with Road Scholar, you will have access to features such as electronic door monitoring, alerting of every door opening/closing, as well as ReeferTrak, which monitors the temperature within a trailer and sends alerts of any changes, all of which are available online for you to view!ShowMe

Road Scholar’s Show Me feature allows you to see exactly where your cargo is at any precise moment, right down to the street level, with a photograph of the truck and location so you can be assured of where your cargo is at all times.

And for those of you on the go, you now haveshow_me_quick_track Road Scholar’s technology available to you at your fingertips!  Road Scholar has just completed our ShowMe Quick Track feature, a new tracking tool that allows you, the customer, to track and trace your freight via your iPhone, Blackberry, Android, or Windows Mobile device.  Just go to http://showme.roadscholar.com/Mquicksearch.asp and type in your tracing number for an updated status.  It’s that easy!

Ship with a company of value by going to www.roadscholar.com today where we stay accountable and you stay informed!

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Cargo Theft Reaches New High Due to Inside Jobs

Tuesday, November 23rd, 2010

Tis’ the season of stealing with cargo thefts climbing the charts as the holidays quickly approach.holly

According to Diversified Risk Management, Inc.’s George Ramos, Jr., “Over the past decade, cargo theft has risen dramatically but it’s never been as high as it is now” (http://www.marketwire.com/press-release/Cargo-Theft-Southern-California-on-Rise-Expected-Worsen-During-2010-Holiday-Season-1354972.htm).

Theft results in a loss of more than $30 billion in the transportation/shipping industry every year with numbers increasing in the later months, an article in marketwire.com notes.

California tops states with the most stolen goods, but everyone is warned to remain on the lookout since all cargo is at risk and take protective measures before a crime is committed that costs both the shipper and carrier money.

Road Scholar Transport has already protected their tractor trailers (and your cargo) with security devices that monitor all door openings and closures, track the precise location of all trucks at any given time, panic buttons to prevent operation of the vehicle, and much more, constantly keeping a close surveillance on all freight.

The article explains that cargo is usually taken during transport and with many of these being the result of “inside jobs.”  Thieves often target specific freight, such as electronics or pharmaceuticals.  With many tractor trailers unable to distinguish exactly what goods trucks are transporting, the only way for thieves to know what is inside is through the shipper or truck driver providing the information to them.

With this being said, Ramos suggests that companies take preventative measures such as hiring undercover workers to keep an eye out for any “inside” deals and to always background check and drug test their employees (http://www.marketwire.com/press-release/Cargo-Theft-Southern-California-on-Rise-Expected-Worsen-During-2010-Holiday-Season-1354972.htm).

Road Scholar Transport drug tests every new hire and 50% of drivers every year, with 10 year criminal background checks on all drivers.  With Road Scholar Transport, you can guaranteed that your cargo will be safe.

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Service Hours Proposal Leads to Concerns of Capacity/Cost

Monday, November 1st, 2010

A ruling on the available number of hours-of-service a driver is allowed to travel will be issued later this month.

The proposal would reduce the allowed driving time that a truck driver will have available to service customer’s needs by 8 to 10% a day.

According to Transportation Topics, the ATA (American Trucking Associations) predicts that the current restart clause, which acknowledges that drivers can reset their clocks after a 34-hour break, would be changed to 44-48 hours.
This impact on the availability of drivers would lead to capacity issues, as a single driver would be unable to accomplish the same number of miles he or she normally would.  Therefore, more drivers would be needed to fill in the void, which, in return, leads to increasing costs to maintain these drivers.

Many individuals in the trucking industry, including members of the ATA, are against the proposal, believing that companies will not be as flexible or productive.  This disapproval leads many to believe that the hours-of-service rule will be challenged.

Road Scholar Transport

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Posted in Trucking Industry News | 41 Comments »

As Shippers Lean Towards the Trucking Industry, Changes Within Take Place

Tuesday, August 31st, 2010

With an abundant quantity of freight needing to be transported and an insufficient number of trucks to do so, trucking industries are starting to raise their rates.

With that being said, companies will persist in utilizing the trucking industry for transporting their cargo, due to trucking’s efficiency and flexibility, as well as insufficient rail transportation, with nearly “80 percent of American towns having no rail service” at all (http://www.truckinginfo.com/news/news-detail.asp?news_id=71528).

With the steady increase in freight being shipped via the trucking industry, and issues with capacity, companies and customers are requiring larger trucks that could withhold more weight.  Lucky for them, Road Scholar Transport has tractors of approximately 17,000 lbs and trailers of about 16,000 lbs, with a combined weight limit on our nation’s highways of 80,000 lbs!

According to truckinginfo.com’s article, shippers are using warehousing and distribution centers more due to their low interest rates, which is believed to increase again as the economy recovers and cause them to revert back their old ways.

Not only are capacity issues a problem, but with truckers retiring and the CSA 2010, 1/5 of drivers will be lost, which will lead to higher pay demands (http://www.truckinginfo.com/news/news-detail.asp?news_id=71528).

Along with rate changes, how drivers are being paid is gradually changing as well.  Truckinginfo explains that more carriers are paying drivers by the hour instead of by the mile, in which drivers will be observed more carefully while on the clock.

Going further, truckinginfo.com notes that most trucking industries are staying clear of purchasing new equipment for economic fears, while other companies are pursuing newer, more reliable trucks.  Road Scholar Transport is one of these companies obtaining more dependable tractors.  Within the next couple months, Road Scholar will acquire newer tractors which use less energy and will emit a much smaller amount of diesel particulate than 2004 engines, at a ratio of 1:42!

Think that’s pretty cool?  Visit www.roadscholar.com to learn more about our outstanding services and to view our 10 Miles to a Cure Awareness Campaign.

Road Scholar Transport

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