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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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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