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

Here we are at the end of February already.  It amazes me how quickly the months go by and how things just never slow up anymore.  We would like to thank those of you who have responded to our recent survey.  If you have not, we would ask that you take a few moments and complete it so that we can determine what else we can do to help make your use of our services the best it can be.   If you do not have the email with the link to the survey please contact Mark Schweber and he will get it to you.  Shuie and his gang of teckies are constantly finding new ways to improve and enhance the CAB experience and are always interested in hearing from you on things you might like to see.

This month we report:

MEXICAN CARRIERS – The beleaguered long haul cross border pilot program has finally added a new participant.  The FMCSA approved Grupo Behr de Baja California as the 10th participant.  Whether they will get to the required numbers before the program expires looks unlikely.

VEHICLE CRASHES – The National Safety Council released its preliminary analysis of vehicle crashes for 2012.   It estimates that 36,200 people died in vehicle crashes in 2012, up from the previous year total of 34,600.  There was also an increase in needed medical care following the events, up 5%. The rate of vehicle deaths increased 1.23 per 100 million vehicle miles traveled.  This report is slightly different from the NHTSA report as it reports all deaths as long as they occurred within one year of the accident.  The NTHSA only counts traffic deaths that occurred within 30 days of the crash.

MOTOR COACH REGULATIONS – The FMCSA has announced a crackdown on unsafe bus operations. The FMCSA will work with local and state police to investigate driver qualifications, equipment, scheduling and other safety concerns of high-risk carriers.  The first part of the crackdown will take the next two months and will include a complete analysis of bus safety and enforcement programs. More bus companies are expected to be taken off the roadway.

INTERMODAL FREIGHT – The Intermodal Association of North America reports that intermodal freight in North America set an all-time record of 14.6 million shipments in 2012, with a huge growth in domestic container shipments in the fourth quarter.  We remind underwriters of the additional concerns and risk in underwriting containerized freight when the condition, quality and value of the cargo is often unknown.

BROKER BONDS – October 1, 2013 is the date set for compliance with the new broker bonds.  The bond is being increased from $10,000 to $75,000.   All brokers and forwarders must be registered by that date. You can view the frequently asked questions on the changes in broker regulations here.

HOURS OF SERVICE – The Commercial Vehicle Safety Alliance has requested that the FMCSA delay implementing scheduled changes to the hours-of-service rules for truck drivers until three months after a pending legal challenge is resolved.  Oral arguments are set for March 1 and at the current time the rules are set to take effect in July.

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