Happy May.  I am looking forward to seeing many of you in a few weeks at the annual IMUA meeting in Atlanta.  Please stop by our table during the breaks and visit.  It is always a good event. Check it out at imua.org.

This month we report:

DOT CABINET POST – Anthony Foxx, the mayor of Charlotte, North Carolina, will be put forward as the new leader of the DOT. Foxx doesn’t have any specific experience as a transportation executive.

CARRIER OUT OF SERVICE REPORT –  It was a busy month over at the FMCSA.  The FMCSA has ordered four Olathe, Kan.-based trucking companies – Royal Transport, Inc.; Nationwide, Inc.; Freight, Inc.; and Midwest A, Inc. – to immediately cease all interstate transportation service based on evidence that they are chameleon carriers ™ for an unsafe truck company previously shut down by the agency. Atlanta-based Southern Transportation Inc. was also ordered to stop operating, for refusal to release safety records to investigators. General Trucking, Inc. also based in Atlanta, Ga., was shut down as an imminent hazard to the public due to a pattern of serious safety violations, as well as Washington DC Party Shuttle, which also does business under the name Onboard DC Tours. The FMCSA rounded out the month placing Best Limo Service, also from Georgia out of service as an imminent hazard. With all of their new enforcement power, the FMCSA also declared Johnny Allen Spell from North Carolina to be an imminent hazard to public safety and has ordered him not to operate any commercial motor vehicle in interstate commerce.

STATISTICS – For those of you who are number junkies, the BTS has updated a number of its statistical reports on transportation, including stats on various accidents by mode of transportation, and information on various state laws on distracted driving.  Anyone interested can view the report here.

HOUSEHOLD GOODS CARRIERS – The FMCSA has issued a clarification on the limited service exclusion that held that trucking companies that provide and move containers are not household goods carriers. They concluded that when companies also provide the laborers with the containers they will be considered movers and subject to all household goods movers regulations.  FMCSA’s notice said it would consider the issue on a case-by-case basis, and it outlined eight factors the agency would consider in determining eligibility for the limited service exclusion, including whether the container company advertises itself as a mover, how it handles referrals to companies that pack goods and the corporate or employment relationships between the parties.

In other household goods news, the FMCSA launched its new moving fraud prevention campaign to inform consumers about how to spot the “red flags” of fraudulent or dishonest movers- the “Protect Your Move” campaign. Resources include a moving fraud prevention checklist, a moving broker checklist and tips for a successful move. Consumers can also search a company’s complaint history and compare safety records of companies nationally.  In 2012, FMCSA received over 3,100 consumer complaints about household goods movers, up from 2,851 in 2011. Among the most common complaints are shipments being held hostage; loss, damage or delay of shipments; unauthorized movers; and deceptive practices, such as overcharges. Nationwide, the top ten cities with the greatest number of consumer complaints in 2012 were New York, Los Angeles, Chicago, Houston, Las Vegas, Atlanta, Seattle, Orlando, San Antonio, and San Diego.

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Generally around this time of year I like to wish you all a Happy Spring.  However my hat and gloves and scarf make it difficult to convey that feeling so I think I will wait another month.  I heard that they indicted Puxatawny Phil for misrepresentation.  Speaking as a lawyer I think that is one of the most righteous charges I have heard in a long time.  But I digress.

This month we report:

FMCSA SHUT DOWN REPORT – The FMCSA went after a number of carriers this month, placing them out of service, and also placed another driver out of service.  Highway Star from Oak Park, MI, and its driver, Ibrahim Fetic were both placed out of service as imminent hazards, primarily for log book violations.  General Trucking from Atlanta, GA, was also put out of service after the FMCSA found violations of safety regulations, including dispatching unqualified drivers, inadequate compliance with hours of service, and dispatching unsafe, overloaded vehicles.

In the bus arena, Rimrock Stages Inc., of Billings, MT, which also does business as Rimrock Trailways, was declared an imminent hazard to public safety, as well as Oklahoma City-based Heartland Charters & Tours which was shut down for “failing to adhere to operating conditions” the company agreed to follow in July 2012. Ming An Inc., a New York City bus company was shut down for failing to conduct pre-employment drug and alcohol testing; employing drivers without CDLs; allowing drivers who are not medically certified to drive; failure to prepare records of duty status; failure to require drivers to prepare vehicle inspection reports; and failure to annually inspect the vehicles. FMCSA used its recently granted powers to shut down the Fung Wah bus company, the first time the agency revoked a carrier’s operating authority using powers granted in Moving Ahead for Progress in the 21st Century (MAP-21). Finally Santana Busline Inc., of Springfield, MA was found to have failed to ensure that its drivers comply with hours-of-service requirements, allowed unqualified drivers to operate its vehicles in an unsafe manner, failed to conduct periodic vehicle safety inspections, failed to properly maintain and repair vehicles as required by federal regulations, and knowingly dispatched vehicles with safety defects.

ANTI-INDEMNITY CLAUSES – Montana is expected to be the next venue to join the majority of states which prohibit indemnity clauses in transportation contracts.  The bill has been sent to the Governor for signature. In neighboring Idaho, a similar statute was signed into law, taking effect July 1st.

FRAUDULENT DOT LICENSES AND PLATES – The FMCSA has issued a warning that licenses plates and CDL’s  bearing a false DOT endorsement are appearing throughout the country.  The FMCSA does not issue any such plates or licenses and those using them are guilty of criminal activity.

HOURS OF SERVICE – Oral argument on the hours of service regulations went forward this month, with a ruling expected sometime this summer.  The FMCSA has announced it won’t delay the July 1 start date for enforcement of the latest version of the hours-of-service rules pending the court’s decision.  The ATA claims that driver training, software updates and other preparations for the July implementation date will cost the trucking industry $320 million and would be wasted if the rules are changed by the court decision. At press time various legislators are attempting to intervene and delay the implementation of the new rules. Read More