I can only assume that with the unexpected balmy weather in most parts of the country this month that focus has turned to other matters as there is not much happening in the industry.  Perhaps everyone is just out enjoying the sunshine.

I look forward to being part of the IMUA Transportation Seminar on April 3rd.  If you are interested and have not yet signed up, you can view the seminar registration at www.imua.org.  If you can’t make that, I look forward to seeing many of you again at the annual meeting in May.

We are excited to announce a new scheduled reports feature that is available to our Premium Subscribers.  This enhancement will allow you to customize the PDF version of the Submission Report™ and have it automatically e-mailed to you for any motor carrier on whatever frequency you choose.  For complete information about what is included, please feel free to e-mail Tiana Cain or call her at 212-244-6575 ext. 122.  You can also download a copy of the User Guide, which has been updated to include all the information about the new scheduled reports feature.

This month we report:

ANTI-INDEMNITY CLAUSES – Another state takes the plunge and invalidates shipper contracts which require a motor carrier to indemnify a shipper for all third party losses, even when the shipper is at fault. This month South Dakota joined the bandwagon, making it the 31st state to do so.  Alabama has introduced similar legislation and will hopefully be joining the majority rule soon.

NAFTA – The surface trade between the U.S. Canada and Mexico has increased by 14.3 percent to a record $904 billion, according to DOT statistics for 2011. That is the third largest year to year increase since 1994 when NAFTA was implemented.  In other NAFATA related news, the FMCSA is seeking more Mexican carriers to join the cross border program. The lack of interest from the Mexican carriers will result in a further delay in the border opening as there must be 4100 moves across the border in the 3 year pilot program for the DOT to move forward with its agenda to open the border.

FREIGHT VOLUME – The amount of freight carried by the for-hire transportation industry fell 3.6 percent in January, declining after five consecutive monthly increases, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics.  But everything is relative as it all depends on how you look at it. Shipments in January 2012 were still at the second highest level since July 2008.

HIGHWAY BILL – The Senate has passed its version of the newest highway bill known as MAP-21.  The bill contains steps to address the need for increased safe truck parking, and also has a number of provisions further regulating freight brokerage operations, including an increase in the amount of the bond brokers are required to have, jumping the bond from $10,000 to $100,000.

OWNER-OPERATORS – Bills have been introduced in New York and New Jersey which would require port and package delivery companies to use only employees, preventing the use of owner-operators.  This will be a hotly disputed bill as the so called “Teamster Bill” will be fought by many who use owner-operators in these venues.

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It has been a busy month here at CAB.  We have moved down to the Jersey Shore.  Our new offices, complete with a lovely lake in the back, are located at 150 Airport Road, Lakewood, NJ 08701.  All our other contact information remains the same and we look forward to visitors, after we finally settle in and unpack!

Thanks for all of the great feedback on the new upgrades to the website data.  Glad to see that interest in these new features is high and that it most definitely assists in your underwriting and claims practices.  Comments and suggestions are always welcome.

This month we report:

CSA MODIFICATIONS – The SMS methodology has now been modified to include violations on cell phone use and to provide additional data on brake, wheel and coupling regulations.  Of course, our Submission Report™  reflects all of this new data.  Below is a chart of the new violations, which were all given severity weights of 10:

CARRIER SHUT DOWNS – A small Indianapolis trucking company, U&D Services has been shut down as an imminent safety hazard by the FMCSA.  In 26 roadside inspections 12 drivers were found to be operating without CDL licenses, and 21 were not proficient in the English language.  In other news a Pa trucking company, D.A. Landis and its owner have been indicted on charges of conspiracy to prepare false drive logs.

HOURS OF SERVICE – Will the battle ever end?  The ATA has filed suit on the newest edition of the hours of service rules.  The ATA has opposed the 34 hour restart provision and the requirement that drivers take a break no later than 8 hours into driving time.  Shortly thereafter   Advocates for Highway and Auto Safety, Public Citizen, the Truck Safety Coalition also filed on the rules.  And off we go to the next battle.

HEAVIER TRUCK OPERATIONS – It seems that larger heavier trucks will have to wait a while. The provisions of the Highway Reauthorization Bill which would have allowed heavier trucks have been removed in the House version, and instead there is a proposal that it be sent to committee for an extended 3 year study.  The study would address crash rates, VMT, pavement performance, bridge reliability and other factors.  We will report further as it moves to the Senate.  Increased weight limits are expected to be contentious issues.

BACKGROUND CHECKS – The Transportation Security Administration has decided that the back ground checks for 11 states and the District of D.C. are sufficient for TWIC and hazmat endorsements, removing the necessity of double checks.  The valid credential – either the TWIC or the hazmat endorsement – must be good for at least another year for the background check to be considered valid when applying for or renewing the other credential.   Those states are Arizona, California, Delaware, Hawaii, Missouri, Nebraska, North Carolina, Oregon, South Dakota, Utah and West Virginia.

EOBR – The FMCSA has advised that there will be an even further delay before they issue any final rules on EOBR.  A possible supplemental rule will be issued late in 2012 or early 2013. The earlier rule, as you may recall, was invalidated after being struck down by the courts.

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