MAY 2008 | Issue 61


In This
Issue:

COGSA package liability

CPSC joins CBP in import testing program at ports

UCR – Registration begins

Mexican border pilot program
Midpoint review

NCBFAA Annual Conference

TIA Annual Conference

Claims review
Regulatory Defense

Events Calendar:

May 14-17
MCAA
San Diego, CA

May 18-19
NAFTZ Spring Seminar
Newport Beach, CA

Jun 26-28
Great West Truck Show
Las Vegas, NV

Mexican border pilot program
Midpoint review

The controversial one-year Mexican border program was reviewed by the Inspector General of the Department of Transportation (DOT) at the program’s midpoint. Program participation and safety procedures were evaluated in the report.

The pilot program started last September and provides open border access to approved Mexican carriers. The application process includes numerous safety requirements and procedures to ensure carriers continue meeting the requirements. Although Congress passed a bill to eliminate funding on cross-border programs last December, the DOT continued the program since it interpreted the bill to mean funding was cut for only new projects. The court’s decision is currently pending and participation in the pilot program continues but is still lower than expected.

The program allows 100 Mexican carriers to partake in the pilot program and so far only 19 Mexican carriers have been granted access. An additional 28 Mexican carriers will qualify when they file proof of insurance. Mexican program participants have made about 3,680 trips into the United States and only 247 (6.7 percent) of these trips had a destination past the border zone. At the end of the program, participation data will be reviewed by a panel to determine whether the pilot program decreased U.S. motor carrier safety. With low participation numbers, it will be nearly impossible for the panel to develop any substantial conclusions regarding the Mexican carriers’ safety performance.

The report discusses requirements and systems put in place by the Federal Motor Carrier Safety Administration (FMCSA) to guarantee carrier compliance is maintained. More than 400 state officials were trained to enforce the pilot program. Before Mexican carriers are approved to participate in the program, they must have $750,000 in liability insurance. While participating in the program, trucks are provided a GPS, which the FMCSA monitors for hours-of-service violations. Mexican drivers convicted of traffic violations in the United States are entered into a database to help the review panel evaluate Mexican carriers’ safety performance.

Although safety procedures are in place, the FMCSA has yet to implement a required quality control measure. Currently, the FMCSA is working with U.S. Customs and Border Protection personnel to complete inspections on Mexican carriers crossing the border. The inspections include verifying the driver has a valid license and is proficient in English. The vehicle must have a current Commercial Vehicle Safety Alliance decal which demonstrates the vehicle passed inspection. Without quality control in place, the FMCSA cannot guarantee all Mexican trucks and drivers are checked at the border.

The Inspector General did not include recommendations in the interim report and will issue the final report within 60 days after the program ends. The Mexican border program is scheduled to end this September, but may be forced to cease sooner because of the current litigation.

While the Mexican border program focuses on Mexican carrier safety, U.S. carrier safety is still important. Avalon Risk Management, Inc. provides the coverage required to operate as a motor carrier as well as necessary coverage to protect your business from exposures of the transportation industry. Through strong relationships with our premier markets, we can offer comprehensive coverage for your needs.

Avalon offers the following coverage types:

  • Primary Truck Liability
  • Physical Damage
  • Non-Trucking Liability
  • Motor Truck Cargo
  • General Liability
  • Property
  • Various Truckers' Bonds

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.

Top
View Printable Version

AVALON RISK MANAGEMENT, INC.
150 Northwest Point Boulevard, 4th Floor, Elk Grove Village, IL 60007
P: (847) 700-8100 F: (847) 700-8116

www.avalonrisk.com

ATLANTA | BOSTON | CHARLESTON | CHICAGO | HOUSTON | LOS ANGELES
MIAMI | NEW YORK | SAN FRANCISCO | SEATTLE

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.

Copyright © 2005. Avalon Risk Management, Inc. All Rights Reserved.