$23.7 million liability case against
C.H. Robinson
Avalon offers SDDC Bond and Regulatory
Defense program for TIA members
Bill of lading requirements for
surface freight forwarders
Tips on how transportation brokers and
other companies that hire motor carriers can reduce their
liability exposure
CBP withdraws enhanced bonding
requirement for shrimp imports from India and Thailand
United States levies 10 percent import
tariffs on softwood lumber from four Canadian provinces
New FMCSA program expected to reduce
accidents
Upcoming Events
April 14-16
ECA Marketplace 2009
Chicago, Ill.
April 19-23
NCBFAA Annual Conference
Rancho Mirage, Calif.
April 30-May 1
IANA Intermodal Seminar
Oakbrook, Ill. |
New FMCSA
program expected to reduce accidents
Truck accidents involving fatalities are
costly, even for property brokers. Recently, an Illinois
jury reached a verdict requiring the freight broker, C.H.
Robinson, to pay more than $23 million in damages. While
many industry professionals believe freight brokers are not
liable for motor carrier accidents, these types of lawsuits
will continue as plaintiffs try to obtain money from any
business involved. Possibly, the only way to avoid expensive
lawsuits is to prevent accidents.
In 2004, the Federal Motor Carrier Safety Administration (FMCSA)
started working on an initiative called Comprehensive Safety
Analysis (CSA) 2010 with a goal to further reduce large
truck accidents. The new initiative is designed to increase
the effectiveness of the FMCSA motor carrier compliance and
enforcement program by reaching more carriers. Currently,
the FMCSA conducts labor intensive on-site compliance
reviews to determine a motor carrier’s safety fitness. Since
the reviews take 3 to 4 days each, FMCSA can only reach a
small number of the 700,000 active interstate motor
carriers.
CSA 2010 will utilize roadside safety violation data to
indentify both high-risk drivers and carriers. The data is
weighted based on its relationship to crash causation and
classified in the new measurement system. The seven
Behavioral Analysis Safety Improvement Categories (BASIC)
for classification include: unsafe driving, fatigued
driving, driver fitness, controlled substances/alcohol,
vehicle maintenance, improper loading/cargo and crash
indicator. When a carrier has a score higher than the unfit
threshold in any one of the seven BASICs, FMCSA will use an
intervention method. Each of the intervention methods are
designed to inform motor carriers about their potential
safety problems so motor carriers can change unsafe behavior
and prevent accidents. The intervention methods include: a
warning letter, targeted roadside inspection, off-site
investigation, on-site investigation – focused, cooperative
safety plan, notice of violation, on-site investigation –
comprehensive, notice of claim/settlement agreement.
In Feb. 2008, FMCSA launched the 30-month field test with
participating states: Colorado Georgia, Missouri and New
Jersey. The first phase implemented three of the BASICs
including: unsafe driving, fatigued driving and vehicle
maintenance. The remaining BASICs were implemented during
the second phase which began in Oct. 2008. Implementation of
CSA 2010 is planned to start after the field test is
completed in the middle of 2010.
According to the FMCSA, during the first six months of the
field test, 1,800 carriers received a warning letter of
which 45 percent reviewed their safety measurement data. In
addition, the FMCSA received letters from a few carriers
stating plans on how they planned to fix their safety
problems. With the current program, these carriers would not
have received a notice from the FMCSA about their potential
safety issues. For more information on CSA 2010, please
click
here.
While the FMCSA works on reducing accidents, maintaining the
proper insurance is still required by law. Carriers not only
need an insurance program to meet the government’s
requirements, but a quality program is vital to protecting a
carrier’s assets when an accident does occur. As an
insurance broker dedicated to the transportation industry,
Avalon understands your needs and can provide you with a
comprehensive insurance program to help protect your
business.
Our Truck Insurance program offers:
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Primary
Liability
-
Physical
Damage
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Non-Trucking
Liability
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Motor Truck
Cargo
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General
Liability
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Property and
Warehouse coverage
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Umbrella
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