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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!
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
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
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.
It’s been a while since I wrote to you. Today I wanted to share an article written by a company that offers bonds for brokers of all kinds. When you get trucking authority, you will need to check on the FMCSA website to see if you will need a surety bond to proceed in the trucking business. Below is a short article written by one company that offers bonds to truck brokers, specifically freight brokers. These are the people who find the loads for drivers and dispatches them accordingly. Enjoy the read and remember to be safe out there!
Freight Broker Bonds
Like a host of other industries, freight brokers are required to obtain legitimate bonding before they can legally operate.
The Federal Motor Carrier Safety Administration (FMCSA), www.fmcsa.dot.gov/, mandates that brokers acquire these risk-mitigation tools to help protect consumers, state interests and freight companies. These bonds may also be referred to as BMC-84 Bonds, ICC Bonds or property brokers surety bonds. The FMCSA does have an exemption that allows brokers to possess a BMC-85 trust fund instead of the traditional freight broker bond.
How They Work
In essence, surety bonds are three-party agreements between a principal (the entity needing the bond), the obligee (the project owner or recipient of the work, often the state) and the surety, a neutral third party that guarantees the company will fulfill its obligations. These bonds are not to be confused www.suretybonds.com/insurance.html.
A freight broker bond provides a guarantee that all applicable laws and regulations will be followed. It also provides an avenue of recourse and financial compensation if a broker fails to fulfill its duties or engages in illicit or illegal activity.
Consumers or other injured parties can file a claim against the bond. If the claim is ultimately deemed valid bond company that issued the bond ensures compensation is provided.
How to Obtain Them
The market for freight broker bonds remains volatile after several years of frequent bond claims. In many states, these are considered high-risk bonds that may require significant collateral. There is a high-risk market for these bonds, and applicants should expect to pay higher rates and provide 100 percent collateral.
Hello, Fellow Drivers, On 11/9/09 I discussed a brief overview of a DOT audit once you get trucking authority. Today I will outline the paperwork necessary to successfully pass a DOT audit. You will need to take care of the paperwork that has to be in place to pass your first DOT inspection. These items are employee records, drug testing results, DOT physical (long form), log books and any audits done on them, your truck and trailer inspection and finally your pro-rate book that is kept in the truck. You will want assistance from Clay Eppard of Fleet-Safety, Inc. to get these in proper order. They will also assist you with your DOT inspection. You can always contact me by email at truckersandtravelers@gmail.com. First, your employee records will have to be filled out. Certain information will have to be included and an outside source will have to check your references and employee history. The information to be included is: employee application, copy of driver’s license and social security card and other pertinent information. I included an 18-point checklist in my driver files. Second, you should have your drug testing either done or scheduled by now. You will have to have your original results in your employee records and a copy in your pro-rate book. The long form of your DOT physical should also be included in your files. Your New Entrant Safety audit or DOT audit will occur within the first 18 months of your trucking business with operating authority. You will want to consult with Fleet Safety in order to be ready for this audit and to pass it. Please see my blog on 6/22/09 for more information. Third, your most recent truck and trailer inspection form should be in your files also. You can have these done at any truck stop that offers truck repairs, such as the TA or the Flying J. You will have to perform this inspection yearly whether you have INTERstate or INTRAstate trucking authority. With INTERstate trucking authority, you will have to have your log books audited monthly as if you were working as an employee of any other trucking business. INTRAstate trucking authority only requires time sheets if traveling under 100 miles per day. If over that limit, you will need to keep logs also. In this economy, it helps to save money. One of the ways to save is to get trucking authority by doing most of the steps yourself. I hope you enjoyed the read. Remember! Be safe out there.
Hello, Fellow Drivers! I was doing some research on trucking authority and found an interesting power point about DOT Compliance. This presentation takes you through the process of your first DOT audit. Below is the link for that power point presentation. In my next post, I will explain the paperwork that you must have in place to pass this inspection by the DOT. You can always email me and I will be happy to answer any questions in depth about this process. Enjoy the read and remember to be safe out there!
http://www.fmcsa.dot.gov/about/outreach/education/education.htm
Once you get to this page look in the lower right hand to the column titled “Regualtions and Standards”. Under this heading click on the first title “What is a Compliance Review?”. Your computer will ask you if you should open or save this download. I would save it so you can go back and read it more than once.
This inspection will happen within the first 18 months of opening your trucking business. A DOT officer will contact you to schedule this audit. Preparation is your best tactic to pass this important inspection. You can do it with planning and proper education and guidance. Remember to see yourself as the successful trucking company you are and you will pass your audit with flying colors.
Hello, Fellow Drivers! If you read yesterday’s blog (11/5/09) on how to get trucking authority, then you will be able to follow this blog and decide if you want carrier authority, broker authority (steps are below) or both. In any case, you will want to bookmark the federal website that gets you started on your way to starting your trucking business. That site is www.fmcsa.dot.gov. You can also visit www.truckersandtravelers.com for further assistance and email the owner of the site. You be the one that decides who will assist you. Empower and educate yourself of the trucking authority process. Enjoy the read and remember…be safe out there!
Requirements of obtaining your broker authority within the minimum 16 days:
Refer to www.truckersandtravlers.com for assistance with doing steps 1 and 2 yourself.
Step 3 – Surety Bond or Trust
You are responsible for obtaining your own surety bond or surety trust. You can choose either a bond or trust, however you will need to obtain one or the other within the first two weeks after the MC number is filed to avoid any delays. To find a reputable surety bond company, do a Google search on surety bond for trucking and you will find companies to assist you with this process.
What is a Surety Bond?
Freight Brokers must obtain a Broker Authority. In order for the Broker Authority to be released as “Active”. there are 2 items that must be on file with the FMCSA. You must have a BOC-3 process agents and a $10,000 Broker Surety Bond.
The Broker Bond is evidence of financial responsibility. Basically the Surety Bond guarantees that you will meet all your contractual obligations to your customers and that you can pay any claims immediately.
Either the BMC 84 “Property Broker’s Surety Bond” or a BMC 85 “Property Brokers Trust Fund Agreement” must be on file, both will satisfy the Federally mandated $10,000 insurance/surety requirements for your Property Broker Authority.
You would need to contract with a bonding company or use your own resources. Evidence of a surety bond must be filed using a BMC 84, evidence of a Trust Fund with a financial institution must be filed using form BMC 85.
These items must be on file in order to activate your Broker Authority.
A Bond is not insurance that you purchase; it is the collateral for a promise.
We work with a “Highly Reputable” Bonding Company that has several different financial plan options for you to help you obtain your required Broker Bond. They currently hold over 50% of the Bond market, they are in excellent standing with the Better Business Bureau, they are very experienced and have many references for verification.
Most new Broker’s do not have this kind of money, if you need help getting a Broker Bond, contact us and we will help you immediately.
Do not let the $10,000 Broker Bond prevent you from pursuing a Freight Broker Business of your own, there are different plans to pick from that fit your financial needs.
Hello, Fellow Drivers, Here is a simple breakdown of the steps involved in how to get trucking authority. First I will list the steps in carrier authority. Next blog I will cover broker authority. For further assistance, please email me and I will be happy to answer your trucking authority questions . You can also visit www.truckesandtravelers.com for more in-depth information about trucking authority. Be safe out there.
It takes approximately 5 to 7 weeks to complete your authority process from start to finish. There are 2 main steps to completing your authority process: federal and state. Below is a breakdown of the pieces for each step and an explanation of what they are:
Federal – Approximately 16 Business Days to Complete
– Issued by the Federal Motor Carrier Safety Administration (FMCSA), the Motor Carrier (MC) Number is what constitutes authority to cross state lines for hire as a motor carrier. All companies transporting freight for hire are required to obtain an MC Number.
– Issued by the United States Department of Transportation (USDOT), the USDOT Number is the main tracking number for your trucking company. The USDOT number registers the number of trucks, drivers, and the safety rating of your company. A USDOT NUMBER DOES NOT CONSTITUTE AUTHORITY.
– Process agents are people designated in each state that can accept legal documents on your behalf and then return them to you in your home state. BOC 3 Process agents are a requirement to obtaining federal authority.
– A carrier must obtain Liability and Cargo insurance. It is recommended that you obtain a $1,000,000-liability policy and a $100,000 Cargo policy. You will need to obtain insurance within the first two weeks after the MC number is filed to avoid any delays in your authority processing. If you fail to get insurance on file within the first 60 days then your authority application will be dismissed. If you do not obtain insurance within that year’s time, you will have to start the authority process over again and repay all applicable fees.
State
– The Unified Carrier Registration Agreement states that all motor carriers, regulated, exempt, private, interstate brokers, Freight Forwarders and leasing companies are subject to fees under the UCRA. Fees are calculated per company based on the number of commercial motor vehicles it operates. Commercial motor vehicles include the number of trucks, trailers, and power units operated by the company).
– The International Fuel Tax Agreement (IFTA) is for trucks with a Gross Vehicle Weight over 26,000 lbs operating interstate for-hire. All 48 states and the Provinces of Canada participate in the IFTA program. Once registered there will be quarterly tax filings due. You are required to keep track of the mileage traveled in each state and all of your fuel purchases. Some states charge a small one time registration fee to get started but usually it is free.
– The International Registration Plan (IRP) is for trucks with a Gross Vehicle Weight over 26,000 lbs operating interstate for-hire. All 48 states and the Provinces of Canada participate in the IRP Program. The IRP covers the apportioned tags for the truck. There is a yearly fee to register and operate your truck in each state or province. The cost is dependent on the miles you run in each state or province for the year. The average cost ranges from $1200 to $1600.
NY, NM, KY, & OR – These states require an extra permit to operate within their borders. Once registered there will be tax filings due based on the miles traveled in each of these states.
Hello Fellow Drivers, If you are thinking about striking out to get your trucking authority, then let’s talk about which type of authority you will need to get started. There are two types and you can obtain both at the same time if you need to.
1. Carrier Authority – A Carrier, more commonly referred to as a Trucker or Truck Driver is an individual who provides an essential service to industrialized societies by transporting finished goods and raw materials over land, typically from manufacturing plants to retail or distribution centers. Truck drivers are also responsible for the inspection and maintenance of the vehicle used. 11 – Source: Wikipedia, “Definition of a Truck Driver”
2. Broker Authority – A freight broker is an individual or company that serves as a liaison between another individual or company that needs shipping services and an authorized motor carrier. Though a freight broker plays an important role in the movement of cargo, the broker doesn’t function as a shipper or a carrier. Instead, a freight broker works to determine the needs of a shipper and connects that shipper with a carrier willing to transport the items at an acceptable price. 2 2 – Source: “What is a Freight Broker?”
If you are interested in how to get trucking authority, check out www.truckersandtravelers.com. They can assist you in doing it yourself and saving you money. Be safe out there!
Hello Fellow, Drivers, For those of you starting a trucking business or looking for trucking resources, here is a great article on communication skills. Enjoy the read and be safe out there.
TIPS FOR BEING ASSERTIVE
*EYE CONTACT – Make sure the person is more interesting than what is on the floor. Look at the person most of the time. But, do not stare at people 100 percent of the time.
BODY POSTURE – Try to face the person. Stand or sit up tall. But, don’t be a stiff board.
*DISTANCE/PHYSICAL CONTACT – If you smell or feel the other person’s breath, you are probably too close. Keep a comfortable distance.
GESTURES – Use hand gestures to add to what you are saying, but remember that you are not conducting an orchestra.
FACIAL EXPRESSIONS – Your face should match your emotion and what you are saying. Don’t laugh when you are upset and don’t have a frown when you are happy. A relaxed, pleasant face is best when you are happy. A relaxed, serious face is best when you are upset.
*VOICE TONE, INFLECTION, VOLUME – When you are making an assertive message, you want to be heard. In order to be heard you have to pay attention to the tone of your voice (happy, whiny, upset), the inflection of your voice (emphasis on syllables), and volume of your voice (whisper to yell).
FLUENCY – It is important to get out your words in an efficient manner. If a person stammers or rambles on, the listener gets bored.
TIMING – When you are expressing negative feelings or making a request of someone, this is especially important. Seven days later may be too long. Doing it right on the spot in front of people may not be the right time to do it. Do it as soon as there is a time for both parties to resolve their issues alone.
*LISTENING – An important part of assertiveness. If you are making statements that express your feelings without infringing on the rights of others, you need to give the other person a chance to respond.
*CONTENT – What a person says is one of the most important parts of the assertive message. Depending on what a person is trying to accomplish, the content is going to be different.
Source: Alberti, R. E., & Emmons, M. L. (1982). Your Perfect Right: A guide to assertive living. SanLuis Obispo, CA: Impact.