MAY 2007 | Issue 57


In This
Issue:

>U.S. and South Korea trade deal

>Secure freight initiative begins testing at two foreign ports

>Vietnam to require export licenses:
U.S. textile shipments at high risk

>EU: Additional 15 percent Customs duty on certain U.S. goods

>UCRA fee structure:
FMCSA currently developing

>NHTSA issues final rule on ESC

>FMCSA proposal for stricter compliance standards

>C-TPAT update:
Offers ROI and new benefits

>FIATA MTI meeting 2007:
Zurich, Switzerland

>NCBFAA 33rd Annual Conference

>TWIC program delays

Events Calendar:

MAY 14-16
ECA Marketplace 2007
Orlando, FL

MAY 17-20
MCAA Conference & Expedition
Orlando, FL

MAY 20-21
NAFTZ Spring Seminar
Atlanta, GA

MAY 21-22
Northwest Intermodal Conference
Portland, OR

MAY 31- JUNE 03
IFFCBANO 29th Annual Conference
Port Clear, AL

JUNE 07-09
The Truck Show 2007
Las Vegas, NV 

FMCSA proposal for stricter compliance standards

The Federal Motor Carrier Safety Administration (FMCSA) is reviewing submitted comments on the proposed rule to raise compliance standards for new motor carrier entrants.

Currently, new entrants may commit one of the 11 regulatory violations and still pass the safety audit. Under the proposed rule, new entrants cannot commit any of the 11 regulatory violations to pass the safety audit. The 11 violations are:

  1. Failing to implement an alcohol and/or drug testing program
  2. Using a driver who refused to be tested
  3. Using a driver who failed the alcohol and/or drug test
  4. Allowing a driver with suspended CDL to drive
  5. Allowing a disqualified driver to drive
  6. Operating a vehicle without the proper insurance
  7. Using a disqualified driver
  8. Using a physically unqualified driver
  9. Failing to require a driver to complete a record of duty status
  10. Permitting the operation of a commercial motor vehicle declared “out-of-service”
  11. Using a commercial motor vehicle not periodically inspected

The need for a stricter safety audit became evident after the FMCSA compared safety performance of new entrants to experienced carriers. Their report “Analysis of New Entrant Motor Carrier Safety Performance and Compliance Using SafeStat,” was released in 2000. The report showed new entrants had higher crash involvement and worse safety compliance and performance for both drivers and vehicles. The results lead FMCSA to ensure new entrants implement proper safety programs before granting permanent registration.

The proposed rule generated both criticism and support. The Owner-Operator Independent Drivers Association (OOIDA) questions the issuance of the proposed rule since the FMCSA’s study used the SafeStat program. Both OOIDA and Advocates for Highway and Auto Safety (Advocates) disagree with the usage of the SafeStat program, revealed to contain data inaccuracies and incomplete information. The American Trucking Associations has concerns about larger carriers passing the safety audit, since the regulatory violations were in singular format. Therefore, any one driver would disqualify a new entrant.

Advocates want the safety audit conducted before providing authorization. However, Advocates and Commercial Vehicle Safety Alliance support the raising of compliance standards for new entrants.

All carriers must implement safety programs in addition to maintaining the proper insurance. Avalon Risk Management, Inc. can provide the coverage you need to protect your business from the everyday exposures of the trucking industry. From building strong relationships with our markets, we can offer comprehensive coverage for your needs. Whether you are an owner/operator, small fleet or large fleet company, Avalon has the right insurance program.

Avalon offers the following truck insurance policies:

  • Physical Damage
  • Primary Truck Liability
  • Non-Trucking Liability
  • Motor Truck Cargo
  • General Liability
  • Intermodal Interchange coverage
For more information, please review our Truck Brochure or complete our Truck application for a no-obligation quotation.

For further information regarding truck insurance, please contact your local Avalon office or Anna Vize, Product Manager at Avalon’s corporate headquarters. Anna Vize can be reached at her direct line 847-700-8154 or at avize@avalonrisk.com. To view a directory of Avalon’s office locations, please visit our Web site at www.avalonrisk.com.

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The Quest newsletter is published quarterly and is designed to provide critical information to the transportation and logistics industry. Subscribers to The Quest also benefit by receiving policy change notifications, special industry information bulletins, and notifications of upcoming conferences. Avalon Risk Management, Inc. is not responsible for the accuracy or reliability of information contained herein. The reader/user assumes all risk in the use of such information. To subscribe to or unsubscribe from The Quest, please visit the Quest Newsletter page on our Web site. To view prior issues of The Quest visit the Quest Archives.

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