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Trucking Business Tidbit – Debt is Evil Because… Part 2 of 2
Thursday, March 11, 2010
posted by 18 Wheeler 12:05 AM
Hello, Fellow Drivers, Today I want to finish up with this two-part blog about debt. For all the drivers that want to start a trucking business or want to prosper even more in their present trucking business, here are some more tips from Dan Kennedy’s book, “Wealth Attraction For Entrepreneurs”.
Wealth Magnet 19 – Independence
Debt is EVIL because…
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Every dollar you being in is instantly diminished in value by its need to contribute to servicing your debt.
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It compels you to do things you would otherwise not do. Debt produces need. Need is completely counter-productive.
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It leaves you vulnerable to Short-term competitive or marketplace challenges,, economic slumps, aberrant events (e.g. 9/11), etc. that you might otherwise painlessly withstand.
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It is habit-forming. it is easy to get good at juggling debt, comfortable living in debt. You can get so good at survival skills that they are in the way of developing success skills.
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It is a source of worry, anxiety, and frustration that interferes with wealth attractions, productivity , and even physical health.
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It lengthens the time required to get to your Financial Independence Number, sufficient assets and investments that you never need work or earn another dollar for the rest of your life.
Everybody needs to be cautious of need. After all, if you ask most people why they go to work in the morning, they say, “to pay bills.” Very high income people say the same thing. And they are still slaves, just better dressed, because they are working for debt.
Entrepreneurs need to be especially cautious of expanding need by piling on employees, infrastructure, overhead, people, places, and things. bigger is not necessarily better. More gross may not only produce less net but also may move you from master to slave before you realize it.
Whether through debt-reduced or debt-free living, other strategies, psychological techniques, or all of the these things, I can assure you that the less you need the next deal, the next sale, the next client, or the next dollar, the easier it will be to attract all the deals, sales, clients, and dollars you could ever desire or imagine, times ten.
I hope you enjoyed the blog and that you come away with useful information for you trucking business. Remember to be sage out there!
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Trucking Business Tidbit – Debt is Evil Because… Part 1 of 2
Wednesday, March 10, 2010
posted by 18 Wheeler 9:34 AM
Hello, Fellow Drivers, Today I want to cover a practical subject for all of you who want to start a trucking business or who want to prosper in your present trucking business. This comes from a book I keep as a financial shot in the arm when I need to remind myself of the ways wealth comes to me. The book is written by Dan Kennedy and the short title is “Wealth Attraction For Entrepreneurs”. Here is an excerpt from chapter 19.
Wealth Magnet 19 – Independence
Wealth is attracted to wealth, money to money. But because independence is the prime outcome and benefit of wealth, wealth is also attracted to independence. One is as good as the other as a magnet. Consequently, the less you need income, the more opportunities present themselves, the more eager people are to do business with you and pay you money, and the more easily wealth is attracted. The mandates the dimple practice of living beneath your present income so that you can be and stay debt free. … I realize this is very conservative financial advice. … It is again, about attracting wealth more than it is part of a debate about using debt as investment capital. …
Many other financial gurus differ passionately. They would advise, for example, fully mortgaging your home in periods of low interest rates and investing that money in real estate, stocks, or whatever to make the spread and build up assets. I have never gotten comfortable with debt as an asset, with leveraging debt into more debt. … I also find that leverage-the-debt advice often comes from people who earn commissions selling investments. However, right now, this about that debate. The debate ignores and omits the psychology of attracting wealth by feeling wealthy at your core (not indebted) and by feeling and being independent.
Debt doesn’t just enslave through compound interest reversed. It enslaves by imposition, by telling you that you should do work you don’t want to do, accept clients or customers you can’t stand, and otherwise compromise every which way because you need money. I insist your objective should be to get to the position of not needing more income, so you can act independently, be selective, call your own shots, and be entirely free of actual or felt pressure. What I call “The Independent Position” rolls finances, attitude, reality and emotions, and the conscious and subconscious together, and it is magic.
Tune in tomorrow when we give the REST of the story, as Paul Harvey would say! Be safe out there!
Hello, Fellow Drivers, On 3/3/2010 I published an article about the FMCSA that they had temporarily closed their doors. This article comes straight from the FMCSA website to update that report. If you have trucking authority or want to get trucking authority, this is trucking industry news you will want to take note of. Enjoy the short read and remember to be safe out there!
Trucking Authority – The FMCSA To Be Shut Down 3-2-10
Wednesday, March 3, 2010
posted by 18 Wheeler 9:58 AM
Hello, Fellow Drivers, After taking a sabbatical from blogging I am back to keep you informed on the latest developments and information to get trucking authority or to have a successful trucking business. Land Line Magazine recently published this article about the FMCSA. It greatly affects the trucking industry. Enjoy the read and remember to be safe out there!
SPECIAL REPORT: DOT to shut down on Tuesday
Friday, Feb. 26, 2010 – As of Tuesday, March 2, a big chunk of the U.S. Department of Transportation will be shut down temporarily because of a lack of funding. Just how long it lasts will depend on Congress.
The stunning news came Friday after the Senate adjourned without passing legislation to extend surface transportation programs that were set to expire Sunday, Feb. 28.
As a result, 4,000 DOT employees will be at home without pay starting Tuesday, leaving only a skeleton crew to deal with matters of immediate safety.
Affected agencies include the Federal Highway Administration, Federal Motor Carrier Safety Administration, Federal Transit Authority and National Highway Traffic Safety Administration.
For truckers, the shutdown will bring business such as audits, authority applications, MCS-150 updates and other paperwork issues to a grinding halt.
The shutdown will not immediately affect scale houses, which are run by state law enforcement agencies. However, because FMCSA provides funding to state agencies for commercial vehicle enforcement, the furlough will put reimbursements in jeopardy.
U.S. Rep. James Oberstar, D-MN, chairman of the House Transportation and Infrastructure Committee, called an emergency press conference on Friday to shed light on the rare occurrence. The last government shutdown happened in 1995 and 1996 over disagreements about appropriations.
“The shutdown of the federal highway program means that the Federal Highway Administration won’t be able to reimburse states for highway or transit funds,” Oberstar told reporters.
The furlough and lack of funding mean no money from FMCSA to fund state commercial vehicle enforcement.
“None of that will happen because there will be no funding for it, and if there is a furlough on Tuesday there won’t be any personnel available for enforcement action,” Oberstar told Land Line.
Oberstar said the shutdown also affects the stimulus funds to states because there won’t be people in federal offices to process grants. He said some states could lose out because of the inaction.
The Highway Trust Fund has been surviving on a series of short-term extensions since the surface transportation law known as SAFETEA-LU technically expired in September 2009.
The U.S. House and Senate have been under tremendous pressure to extend the provisions of SAFETEA-LU beyond Sunday’s deadline.
U.S. Senate Majority Leader Harry Reid, D-NV, asked his colleagues on Friday to lend unanimous consent to a 30-day extension for highway programs offered by the House, but Sen. Jim Bunning, R-KY, did not consent, citing the fiscal ramifications of the $10 billion cost. Bunning’s threat of filibuster caused Reid to adjourn the Senate on Friday for the weekend. Senators are scheduled to return Tuesday with the matter only baby steps closer to resolution.
Oberstar said Friday that in order to get the DOT back to work as soon as possible, he would lend his support in the House to passing the $15 billion Senate version of jobs legislation, HR2847.
The jobs bill contains a provision for shoring up the Highway Trust Fund through the end of 2010. The House originally wanted the highway extension to last only through Sept. 30 as lawmakers work on a five- or six-year highway bill.
Tune in to Land Line and Land Line Now on Monday for continuing coverage of the shutdown and what it means for other agencies.
– By David Tanner, associate editor
david_tanner@landlinemag.com
Trucking Authority – UCR Fees For 2010 Not Finalized; Enforcement Delayed
Tuesday, February 2, 2010
posted by 18 Wheeler 7:34 PM
Hello, Fellow Drivers, I found an interesting article from Land Line Magazine, February 2010. For those of you with trucking authority, or want to get trucking authority, this article will be of interest to you. Enjoy the read and remember to be safe out there.
By Jami Jones
senior editor
With the start of a new year, truckers wanting to clear out their fee obligations are left without a clear answer on what they owe in Unified Carrier Registration fees for 2010.
The Federal Motor Carrier Safety Administration posted a notice to the Federal Register in September 2009 outlining new proposed fees. The extended comment period closed later that month.
FMCSA officials reported during the rulemaking process that states have been unable to effectively collect the UCR revenue they are entitled to by law during the 2007-2009 registration years. They believe the proposed new fee levels will both encourage states to aggressively enforce the UCR fees rule and generate the necessary revenue to execute state motor carrier safety programs.
The fee structure proposed in the rulemaking for 2010 is:
0-1 trucks………………………. $83
2-5 trucks…………………….. $166
6-20 trucks…………………… $497
21-100 trucks……………… $1,741
101-1,000 trucks…………. $8,373
1,001 or more trucks….. $82,983
Brokers and leasing companies will still be subject to the same fee paid by truckers in the 0-1 truck category.
However, as of mid-December 2009, the agency still had not published a final determination on the fees.
“There is an enforcement memo going out telling roadside law enforcement after the first of the year to not write tickets for not having your credentials in place in the cab because there simply isn’t going to be anything in place yet,” OOIDA Director of Regulatory Affairs Joe Rajkovacz told Land Line.
“That is not to say they will not be enforcing the payment of previous years’ UCR fees,” he added.Rajkovacz said truckers really need to make sure they have their proof of payment on
2009 UCR fees.
“Some jurisdictions are writing $1,000 tickets,” he said.
Rajkovacz said he expects the 2010 UCR fees to be settled sometime in the first quarter of 2010. LL
Hello Fellow Drivers,
Let’s talk about the changes that the FMCSA (Federal Motor Carrier Safety Administration) is putting into place for those in the trucking business. If you have trucking authority or want to get trucking authority, then this article is a MUST read. The article came from a quarterly supplement from J.J. Keller & Associates. Remember to be safe out there.
WHAT’S ALL THE BUZZ ABOUT CSA 2010?
If you have not yet heard about CSA 2010, it’s time to lend an ear to the buzz! This is a new enforcement initiative planned for rollout in mid-2010. CSA – Comprehensive Safety Analysis – is about the FMCSA taking a closer look at more motor carrier data and bringing a problem area to the carrier’s attention sooner than under the old system. If the carrier doesn’t respond to initial interventions, more serious interventions will result.
KEY PHRASES TO PAY ATTENTION TO IN THE ABOVE PARAGRAPH ARE closer look…more data…carrier’s attention sooner. FMCSA’s objective with this approach is to become more proactive with lowering crash risk.
A CLOSER LOOK
The closer look phrase means carrier and driver data will be categorized more narrowly – into seven Behavioral Analysis Safety Improvement Categories (BASICs) instead of the four broad Safety Evaluation Areas (SEAs) under the current system. More of the data will come to the surface under seven categories than under four categories.
MORE DATE
A big difference between the current data measuring system (SafeStat) and the new Safety Measurement System, or SMS, is that ALL safety-based violations will be entered into the system – not just out-of-service violations. This, of course, results in more data becoming subject to review. All safety violations listed on a Roadside Inspection Report will become part of the carrier’s data, and be weighted according to the seventy of the violation and the currency of the inspection (violations from more recent inspections will be weighted more heavily).
Carriers’ data will stay in the SMS for 24 months and drivers’ date will stay for 36 months.
CARRIER’S ATTENTION SOON
Under the new initiative, enforcement will have more methods than just the compliance review for dealing with a motor carrier. Poor performance in any one of the BASIC areas could result in an intervention from law enforcement – ranging from a warning letter to a rquest for documents, to getting an appointment to discuss the problem area at a DOT office, to getting a compliance visit froom the DOT. More intervention options will allow enforcement to bring a problem area to a carrier’s attention sooner.
HOW CAN YOU PREPARE FOR CSA 2010?
There are some things you can do now to help assure a good outcome for your company under CSA 2010.
* Review your Carrier Profile information,(MCS-150 on the FMCSA website), monitor crash and inspection report data that get attributed to your company. Keep your profile information up to date and challenge crash and inspection data that is incorrect. Us the FMCSA’s “DataQ’s” tool to have incorrect data fixed so it doesn;t negatively affect you.
* Educate your drivers on the CSA 2010 initiative. Emphasize the greater impact that roadside inspection results will have, not only on your record, but on your drivers’ records too. Driver violations and crash data will also be scored in a driver database.
* Develop radside inpsection and corrective action policies. Put procedures in place for drivers to report roadside inspection results to you immediatly and for transmitting the Roadside Inspection Report. Set up procedures for correcting problem areas discovered during roadside inspections. Do the same for any kind of accident, no matter how minor.
The bottom line is that, under the new system, enforcement agencies will tract more data, have more contact with motor carrers, and will have more intervention tools available to use.
Trucking Industry News – Current Federal Legislation – Part 3 of 3
Tuesday, January 19, 2010
posted by 18 Wheeler 9:33 PM
Hello, Fellow Drivers, This is the last part of the this three part series on trucking industry news. I got this news from the Land Line Magazine online. These are important issues that affect your trucking business. Enjoy the read and remember to be safe out there!
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Hello, Fellow Drivers, As if the trucking business had enough to keep up with, now the Federal Motor Carrier Safety Administration (FMCSA) is adding to the pile! I found this bit of trucking industry news in the OOIDA magazine, Land Line. Read on to keep abreast of the latest ways to keep you from stretchin’ your log books and other things. Remember to be safe out there!
CSA 2010: Your new company, driver safety ‘credit report’
With technology morphing the way we live our lives at warp speed, it’s no big surprise that the Federal Motor Carrier Safety Administration has decided to go high-tech with its compliance enforcement.
Currently, the odds of being hit with any substantive on-site compliance review are somewhere between slim and none. Because of lack of staffing and the cumbersome nature of plowing through mountains of paperwork, each year FMCSA officials are only able to conduct compliance reviews on less than 2 percent of the motor carriers in the U.S.
Enter the technology knight on a white horse – CSA 2010. Back in 2004, FMCSA officials started developing a data-driven system of analyzing all inspection reports on motor carriers and drivers to identify trends of noncompliance.
The mega database system, with all of its algorithms and programs, will spit out monthly safety ratings for companies and drivers. Those who crop up with numerous violations – ranging from the not-so-serious to out-of-service – will pop up on FMCSA’s compliance radar.
But that doesn’t necessarily mean you’ll get a full-blown on-site compliance review. Depending on the severity of the rating, you could get anything from a letter telling you to straighten up your act to that dreaded on-site review that likens to an IRS audit.
Companies will have a chance to get their act together and report back to FMCSA to keep a good safety fitness rating. There will be three fitness rating in the 2010 program: “unfit,” “marginal” and “continue to operate.”
The overall concept is simple enough but, as with anything, the devil is in the details – and with CSA 2010, there are a ton of details.
The program can be broken down into the data, the math behind the number, enforcement, safety fitness determinations and the possible hiccups motor carriers and truckers could encounter along the way.
The following is the first in a series of articles that will explain the ins and outs of the new enforcement program bearing down on the trucking industry.
– By Jami Jones, senior editor
jami_jones@landlinemag.com
Trucking Authority – The FMCSA Goes High Tech – Part 3 of 3
Friday, December 11, 2009
posted by 18 Wheeler 12:05 AM
Hello, Fellow Drivers, Today is the conclusion of this 3-part series on the FMCSA. I trust that you have gained knowledge to help to get trucking authority or to stay compliant if you start a trucking business just are trying to stay successful. Enjoy the read and remember to be safe out there!
December 2009/January 2010
Cover Story: FMCSA takes enforcement to the digital age in 2010
By Jami Jones
Senior editor
The labels
Motor carriers know the value of the current “satisfactory” safety rating. Customers get itchy when they see a “conditional” or “unsatisfactory” rating.
While the names will change, the meaning will pretty much remain the same. Under CSA 2010, motor carriers will be ranked by “continue to operate,” “marginal” and “unfit.”
The big change on this from the current enforcement scheme is that right now safety fitness determination is assigned following compliance reviews. FMCSA is planning to issue a rulemaking that will change all of that.
Where the current method relies heavily on critical and acute violations and required deficiencies in multiple areas, the new method will arrive at a safety fitness determination using all the data collected – including from roadside inspections.
It’s FMCSA’s intent for the new process to be a reflection of the motor carrier’s current compliance, and not how the motor carrier fared in compliance reviews months or even years before. LL
The rub
The new compliance enforcement program put together by FMCSA is clever in its concept that enforcement will be triggered by performance.
The way data is handled and considered, it weights behaviors that pose the greatest risks to truckers and highway safety. Ultimately, it’s about reducing the number of big truck-related injuries and fatalities even more.
The linchpin of the entire system is the data. And that is the one area raising the most concern at the Owner-Operator Independent Drivers Association.
The data is going to include all violations noted on inspection reports and crash reports.
The information entered is not limited to just convictions. Citations, warnings and inspection violations will all be included in the database and calculated to figure your safety rating.
“The fact that all violations, rather than convictions, are being entered into this system sets drivers up to be accused, tried and convicted on the roadside by enforcement personnel,” said OOIDA Director of Regulatory Affairs Rick Craig.
Craig said FMCSA officials have repeatedly been questioned about their insistence on including citations that have not been proven through some sort of legal process.
“The lack of due process for drivers to challenge the legitimacy of violations is completely irrational,” Craig said. “It flies in the face of the premise of innocent until proven guilty.”
In addition to the presumption of guilt, OOIDA is concerned about the quality of the data being entered into the system. And rightfully so.
It is a lot of data. The carrier portion of the database will carry 24 months of inspections and crash reports. The driver profiles will contain 36 months of data.
By FMCSA’s math, the two databases contain 690,000 motor carrier profiles and 3.6 million driver profiles with data from approximately 26.2 million inspections and 730,000 crash records.
Factor in the fact that all of that data is coming in from law enforcement agencies from all around the country in states with different reporting procedures and one can’t help but wonder how accurate all of that data can be.
FMCSA has been working closely with states since 2004 to shore up reporting of violations. In 2004, less than half of the states and DC were classified as being “good” or a “green” state. A total of 14 states were rated “poor” or “red” states.
In five years, 32 states are now classified as good. But 14 remain in the fair category with five still languishing in the poor category.
Drawing from an old computer adage – garbage in, garbage out. If the data is not entered properly or not at all, it seems inevitable that motor carrier and driver compliance records may not be completely accurate.
Currently, motor carriers can challenge information contained in their safety profiles through a system called Data Qs. Craig said that most of the time, carriers find that challenging data rarely results in the error being corrected.
“FMCSA will reach out to the state that entered the information, and all it takes is for the state to reject the claim of inaccuracy. Case closed,” Craig said.
It also seems, without easy logic, that motor carriers and drivers are being treated significantly different. For starters, motor carriers only have to worry about two years worth of data. Drivers will lug around three years of inspection violations and crash reports in their records.
The enforcement and intervention process has multiple options for motor carriers. Drivers, it appears, will be limited to a notice of violation or a notice of claim (i.e., a fine).
“There has to be a simple, effective process for drivers and motor carriers to challenge erroneous information,” Craig said. “We know from years of experience that law enforcement doesn’t always get it right. Without accurate data and due process, it sets up the system to fail miserably.” LL
Trucking Authority – The FMCSA Goes High Tech – Part 1 of 3
Wednesday, December 9, 2009
posted by 18 Wheeler 10:26 AM
Hello, Fellow, Drivers! I hope you are moving along with holiday plans that you’re looking forward to. I saw this article in the latest issue of Land Lind Magazine by OOIDA, of which I’m a member. It seems that in 2010 to get trucking authority you will have to be aware of these new high tech additions to the FMCSA’s enforcement of trucking authority compliance. I want to share this article in three parts. So for the next two days, I will be posting another part of this lengthy article on my blog.
I also wanted to ask my faithful readers if they had any specific topics that they would like to see covered here on this site. Please feel free to email me at truckersandtravelers@gmail.com. I welcome your questions and comments. The goal with this blog site is to have a place for drivers to find valuable information that will help with your trucking business success. Enjoy the read and remember to be safe out there!
December 2009/January 2010
Cover story:FMCSA takes enforcement to the digital age in 2010
By Jami Jones
Senior editor
With technology morphing the way we live our lives at warp speed, it’s no big surprise that the Federal Motor Carrier Safety Administration has decided to go high-tech with its compliance enforcement.
Currently, the odds of being hit with any substantive on-site compliance review are somewhere between slim and none. Because of the lack of staffing and the cumbersome nature of plowing through mountains of paperwork, each year FMCSA officials are able to conduct compliance reviews on fewer than 2 percent of the motor carriers in the U.S.
Enter the technology knight on a white horse – CSA 2010 – short for Comprehensive Safety Analysis 2010.
Back in 2004, FMCSA officials started developing a data-driven system of analyzing all inspection reports on motor carriers and drivers to identify trends of non-compliance.
The mega database system, with all of its algorithms and programs, will spit out monthly safety ratings for companies and drivers. Those who crop up with numerous violations – ranging from the not-so-serious to out-of-service – will pop up on FMCSA’s compliance radar.
That doesn’t necessarily mean you’ll get a full-blown on-site compliance review. Depending on the severity of the rating, you could get anything from a letter telling you to straighten up your act to the dreaded on-site review that likens to an IRS audit.
Companies will have a chance to get it together and report back to FMCSA to keep a good safety fitness rating. There are three proposed fitness ratings in the 2010 program: “unfit,” “marginal” and “continue to operate.”
The overall concept is simple enough but, as with anything, the devil is in the details – and with CSA 2010, there are a ton of details.
The program can be broken down into the data, the math behind the number, enforcement, safety fitness determinations, and the possible hiccups that motor carriers and truckers could encounter along the way.
The following is the first in a series of articles that will explain the ins and outs of the new enforcement program bearing down on the trucking industry.
The data
It seems like nowadays everywhere you turn, some group, business or government entity is collecting data on you.
Credit agencies record your every financial move. Grocery stores track your every purchase with their “shopper cards.” And now FMCSA is going to collect every single mark made on your inspection reports – for both the company and the driver – and from crash reports.
FMCSA will calculate the safety performance of motor carriers – which includes owner-operators running under their own authority – based on seven Behavioral Analysis and Safety Improvement Categories. Those seven categories, dubbed BASICs, and the federal regulations they relate to are:
Unsafe driving (Parts 392 and 397);
Fatigued driving (Parts 392 and 395);
Driver fitness (Parts 383 and 391);
Controlled substances/alcohol
(Parts 382 and 392);
Vehicle maintenance (Parts 393
and 396);
Cargo related (Parts 392, 393, 397
and hazmat); and
Crash indicator.
Data from those seven areas will be collected from inspections and crash reports.
Things will change dramatically in how information from inspection reports is handled. While the current system only calculates a compliance rating based on “out-of-service” and moving violations, that won’t be the case with CSA 2010. All violations included on inspections will be entered and considered– no matter whether it was an out-of-service violation or not.
Another significant change from the current enforcement system is that FMCSA is aiming to hold companies and drivers equally accountable for their roles in safety and performance. So CSA 2010 will also be collecting data on individual drivers.
Records on individual drivers will contain data gleaned from inspection and incident reports. The data will follow the driver no matter how many companies he or she works for.
Access to a driver’s profile will not be restricted to safety inspectors, who will have roadside access to those records. Motor carriers are also going to be allowed to review a driver’s record in the pre-employment screening process. That access will start in December.
FMCSA’s goal with the new driver data collection is to target enforcement on individual drivers with serious violations, such as driving while disqualified, driving without a CDL, making a false entry on a medical certificate, and chronic hours-of-service violations.
The system will hold 24 months of citation and violation data on motor carriers and 36 months for drivers.
All of this data will be housed and maintained by a third-party vendor, not FMCSA. NIC Technologies based in Olathe, KS, was awarded the contract in mid-October.
According to FMCSA, if a motor carrier wants to review a driver profile, they must obtain a privacy release from the driver. Drivers who want to review their own profile must contact the third party vendor or file a Freedom of Information Act request with FMCSA.
NIC’s press release announcing the awarding of the contract stated that the company anticipates charging motor carriers a subscription fee of $100 per year for access to driver profiles and a $10 transaction fee for each record pulled. Drivers will not be charged the annual subscription fee; however, additional fees will be charged for fax or mail requests.