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Bits and Pieces
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Exciting things are happening here at CAB. We hope that you have taken the time to check out the new enhancements to the Premium section of our Subscriber web site. Is it a chameleon carrier™? Is its location really an apartment building? CAB is here to answer those and many other questions about your accounts. We would love your feedback and comments on the new changes and we look forward to further enhancements in the coming year.
We also published our annual review of the industry with an eye toward coming events in 2012. If you have not had a chance to check it out, you can view it here.
And big news! We will be moving to an upgraded facility very soon. CAB is moving to the Jersey Shore! Once we get ourselves set up visits are welcome!
This month we report:
CSA FACTSHEETS - The CSA now provides 7 separate factsheets on the makeup of the seven basics. The factsheets, which can be viewed here, provide information on what steps a carrier can take to minimize scores and can assist underwriters in understanding the reasons for the scores that you are viewing on our website.
REVISED HOUSEHOLD GOODS REGULATIONS - The Surface Transportation Bureau has issued revised rulings for valuation limitations for household goods carriers. The first change will require moving companies to provide certain information on the written estimate (a) a disclosure statement explaining that customers may select either replacement value (full-value protection) for lost or damaged goods or, for a lower rate, a lesser level of protection; and (b) an estimate of the cost of a move under full-value protection. In addition, $6.00 will be the new per-pound value to be used to ascertain the value of a shipment when the consumer selects full-value protection and either does not write in a total value for the shipment or writes in a total value that is below the floor. The ultimate total value for the shipment will be deemed to be either $6.00 times the weight of the shipment in pounds or $6,000, whichever is higher. A complete copy of the rulemaking can be viewed here.
TRUCKING INVESTIGATION - Results were released of a computer-assisted investigation by the U.S. Department of Transportation using heavy truck inspection data from 2003 to 2008 in Northwest Indiana. The numbers are expected to be reflective of trends throughout the country. Of the 8,929 trucks inspected, more than 1 in 4 were found to have out of service violations. Drive book violations were high, as well as driver fatigue, with more than 1,400 violations for hours of service violations.
FMCSA AUTHORITY GLITCH - Computer glitches hit everyone. This month a technical upgrade to the FMCSA licensing and insurance information system was supposed to have brought the system up to regulatory compliance on mandatory cargo liability insurance reporting. Instead, some motor carriers are erroneously receiving notices regarding authority. A notice sent out by the Department of Transportation states that the glitch could affect 4,000 carriers nationwide, and it immediately affected 136 carriers. We are still trying to get to the bottom of this as it appears that the DOT is still revoking the authority of some contract carriers of household goods who do not have cargo filings, even though the regulation indicates that they do not need the filing.
FMCSA STATE OF THE UNION - As is customary in the month of January, government agencies tout their coming plans for the year. The FMCSA has indicated that it will publish rules of medical examiners, a drug and alcohol clearing house, mandatory EORB rules and will make some more changes to CSA.
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Did Santa treat you well? Hope he made you happy. One client has inquired as to which of our clients might actually be insuring Santa? You know - fat guy, drives outdated rig, poor maintenance, hauls mostly dry freight? (Thanks for putting this thought in our head Ms. Jerrie Brannon!) I know that we all believe that Shuie can find out the most interesting of information about entities which haul other people’s property but even he has not figured that one out yet – Santa must not need a filing. Anyone going to come clean? I wonder what his loss runs look like?
We are working away on the resumé so there is not much that we want to report at this end of the year – it will all be in resume which will be out shortly. So for those of you who were actually stuck going to work this week, we give you these little bits of news:
HOURS OF SERVICE RULES - The Hours of Service of Drivers Final Rule has been published in the Federal Register. The effective date of the Final Rule is February 27, 2012, and the compliance date of selected provisions is July 1, 2013. A comparison between the old and new rules table provides:
SUMMARY OF 2011 HOS FINAL RULE PROVISIONS Changes Compared to Current Rule
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PROVISION
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CURRENT RULE
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FINAL RULE
COMPLIANCE DATE JULY 1, 2013
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Limitations on minimum “34-hour restarts”
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None.
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(1) Must include two periods between 1 a.m. – 5 a.m. home terminal time.
(2) May only be used once per week.
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Rest breaks
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None except as limited by other rule provisions.
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May drive only if 8 hours or less have passed since end of driver’s last off-duty period of at least 30 minutes. [HM 397.5 mandatory “in attendance” time may be included in break if no other duties performed]
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PROVISION
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CURRENT RULE
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FINAL RULE
COMPLIANCE DATE FEBRUARY 27, 2012
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On-duty time
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Includes any time in CMV except sleeper-berth.
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Does not include any time resting in a parked CMV. In moving CMV, does not include up to 2 hours in passenger seat immediately before or after 8 consecutive hours in sleeper-berth. Also applies to passenger-carrying drivers.
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Penalties
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“Egregious” hours of service violations not specifically defined.
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Driving (or allowing a driver to drive) 3 or more hours beyond the driving-time limit may be considered an egregious violation and subject to the maximum civil penalties. Also applies to passenger-carrying drivers.
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Oilfield exemption
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“Waiting time” for certain drivers at oilfields (which is off-duty but does extend 14-hour duty period) must be recorded and available to FMCSA, but no method or details are specified for the recordkeeping.
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“Waiting time” for certain drivers at oilfields must be shown on logbook or electronic equivalent as off duty and identified by annotations in “remarks” or a separate line added to “grid.”
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More on the new rules can be viewed here.
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Have you dug your way out of the turkey fog? Are you ready to move onto the next holiday? I am, and hope you are too. Hopefully things start to wind down as we move into the end of the year mode. Of course, we all have that end of the year rush and the government, with its proposed regulations, is no different. This month we report:
CELL PHONES - The FMCSA has banned all hand-held cell phone use by commercial truck and bus drivers while operating their vehicles. Drivers who violate the restriction will face federal civil penalties of up to $2,750 for each offense and disqualification from operating a commercial motor vehicle for multiple offenses. Companies whose drivers violate the law will face a maximum penalty of $11,000. In September 2010, FMCSA had banned text messaging.
FMSCA CRACKING DOWN ON BAD CARRIERS - The FMCSA shut down three companies this month, ATA Trail Inc., Gunther Transport and Clock Transport. The FMCSA issued an imminent hazard out-of-service order against ATA and Gunther following a comprehensive review of their compliance with federal safety standards. The FMCSA also moved to shut down a chameleon carrier ™, Clock Transport LLC that opened shortly before Gunther was shut down, operating at the same address. In addition, the FMCSA had a nationwide crackdown on unsafe bus operators, during which federal, state and local police conducted 8,300 surprise safety inspections of motorcoaches, tour buses, school buses and other commercial passenger vehicles over a two-week period. The unannounced inspections were part of FMCSA’s annual National Passenger Carrier Inspection Strike Force, which resulted in 902 unsafe buses or drivers being placed out of service. The DOT has asked Congress to increase the penalty for operating illegally from $2,000 a day to $25,000 per violation, and to close loopholes that allow bus and truck companies that have been shut down to recreate themselves under a new name.
ACCIDENTS - The FMCSA has released its report for fatal truck-involved crashes and the numbers are good, at least for accidents between 2007 and 2009, the most recent years with available crash data. During that time crashes fell 31% to 3,215 from 4,633, with the fatal crash rate for large trucks dropping to 27%. Since 2000, the fatal crash rate has fallen to 1 crash per 100 million miles. 80.5% of the time the driver error was with the passenger vehicle and not the truck. A copy of the report can be viewed here.
MEDICAL CERTIFICATIONS - Under new regulations, truck drivers will have to provide proof of medical certification to their state licensing agency. The state agency must electronically tie the medical certification to the commercial driver’s license, which should allow roadside law enforcement to electronically confirm valid medical certification. Once the driver takes this step he will no longer be required to carry the certification with him. However because of delays in getting everything implemented the rule was slightly modified to continue to require drivers to retain the medical certificate for proof on the roadside during an inspection until 2014.
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Happy Halloween. We hope that the ghosts and goblins are treating you well and you are getting more treats than tricks.
Tiana Cain, our AVP of Business Development, attended the ATA conference exhibit hall and TIMTC annual meetings held this past month in Dallas. It gave her an excellent opportunity to meet with many of you who also attended the conference. The focus at the TIMTC was on the exchange and use of data, as the transportation and insurance industries look to harness the data to better service their respective markets. At CAB, where data is our expertise, we are committed to always be on top of all the latest trending data relevant to the industry so we can continue to provide the most the most advanced and sophisticated analysis tools the industry has to offer.
One of the interesting things that came up in one of the sessions is the growing issue of Chameleon Carriers. A motor carrier addressed this issue during a session, noting that one of their competitors was recently given an unsatisfactory rating by the DOT and simply applied for new authority under a new name which resulted in a clean slate. As this is a growing trend in the industry, it is very important to use our advanced Carrier Search tool to help identify Chameleon Carriers. If you are unfamiliar with how to identify Chameleon Carriers using our premium products and would like to set up training sessions, or are interested in a demo of our products, please contact Tiana.
In other news:
NAFTA - The borders were a big issue this month. The FMCSA rejected the arguments raised by a number of organizations that a full environmental impact study was required before opening the border. In other news the FMCSA engaged Teletrac to provide EOBRs for all Mexican trucks which will be part of the pilot program. Only 2 Mexican carriers have received approval to participate in the program. Right after the program started this month the first participant was granted permanent operating authority. Mexico has indicated that it will lift tariffs on 99 goods following the steps by the government to move toward border opening.
NATION’S INFRASTRUCTURE - As trucks travel across the country it is important to recognize that the roads and bridges may not be all that they are 'cracked' up to be. One engineering firm sent me this link which allows you to determine the current status of all bridges within a certain radius of your listed location. I found it very interesting and guess many of you will be looking to see if the bridges in your community or where your truckers generally operate are structurally sound. Special thanks to Engineer Steve Gardner at W.J. Castle P.E. & Associates for this piece of data.
OWNER OPERATOR PORT BAN - A Federal Appeals Court has decided that the Port of Los Angeles cannot ban owner operators from local drayage operations. Under the proposed rule only licensed motor carriers would have been permitted to operate, a rule fought by the ATA.
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Welcome to Autumn. Summer sure went by very quickly. I guess it is time to get back into the swing of things. The government also seems to be back in service, at least for now, as various groups ramp up on regulation issues.
This month we report:
COSTLY REGULATIONS - It comes as no surprise to those in the transportation industry that the cost of federal regulation is high. President Obama cited the regulations on Hours of Services and Electronic On Board Recorder rules as among the costliest of all in the country. The current Congress is set to consider whether those very costly regulations are an impediment to job creation and economic growth and should perhaps be eliminated. The ATA has already petitioned the President to drop the new proposed hours of service rules.
NAFTA - A DOT audit has determined that the FMCSA has failed to properly set up the procedures to monitor Mexican carriers. This is expected to delay the cross-border program until November. In addition suit has been filed by the Teamsters and Public Citizen Advocacy group contending that the FMCSA has broken various laws in its steps to implement the program.
SURFACE TRANSPORTATION FUNDING - President Obama has extended Highway Trust Fund programs and funding through March 31, 2012. This is the 8th extension since SAFETEA-LU expired in September 2009. If March comes with no further legislation, yet another extension will be required.
TRAFFIC BOTTLENECKS - Do you think you live the worst area for bottlenecks? When if you live in Chicago that would be true, with Fort Lee, New Jersey following in a close second. Houston took the next 3 spots. The full list, including average speeds at the various locations, can be viewed here. The study was completed by the FHA and the ATRI
INSPECTIONS - CVSA’s brake safety week was conducted at the end of the month and we will report on those results as soon as they are made available. As part of the national Motorcoach Safety Summit, sponsored by the FMCSA, a task force commenced a series of surprise safety inspections of motor coaches, tour buses, school buses and other passenger vehicles at the end of the month.,. The two-week inspection sweep will continue through Oct. 7, 2011. FMCSA also announced that it will release a new smartphone application in November that will empower consumers by providing access to a motor coach’s company's safety record before booking a trip and it will also allow consumers to submit safety violation to FMCSA's National Consumer Compliant Database.
CELL PHONES - The NTSB, which has no rulemaking power, has recommended to the FMCSA that all commercial drivers be prohibited from using cell phones, even hands free cell phones. This recommendation comes following a March 2010 crash which involved multiple fatalities where the driver was believed to have been distracted by cell phone use.
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