Inside
this issue:
Obtaining the proper coverage in the
event of ocean carrier insolvency
Increased limitations on IATA air
waybills effective Dec. 30, 2009
FMC ruling allows OTIs to use
unlicensed agents
Commercial bankruptcies continue as
U.S. moves out of a recession
FMCSA proposes higher UCR fees and
reviews HOS
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FMCSA proposes higher UCR
fees
and reviews HOS
Unified Carrier Registration fees may
increase
The Federal Motor Carrier Safety Administration’s (FMCSA)
proposed rulemaking, which would raise the Unified Carrier
Registration (UCR) fees by 122 percent, received a large
amount of feedback from industry groups and associations.
The UCR program collects fees from carriers, private fleets,
freight forwarders, brokers and leasing companies, which are
used to fund state enforcement activities. The current fee
brackets range from
$39 - $37,500 for companies with up to two vehicles to
companies with more than 1,000 vehicles respectively.
While opponents to the proposed legislation anticipated the
fees would increase, they believe the proposed fees are too
high. Also, many businesses believe that increasing UCR fees
will not solve underlying issues such as low collection
rates. According to the FMCSA register, states were unable
to collect a large portion of fees in 2008. The proposed
fees ranging from $87 - $83,412 are expected to compensate
for low collection rates and a recent federal law change
that eliminated trailer registration fees.
States are eager to get the new fees approved, but many
businesses are urging the FMCSA to reconsider.
Hours-of-service lawsuit suspended
The Department of Transportation (DOT) has agreed to
review the current hours-of-service (HOS) regulation and in
exchange, advocacy groups Public Citizen and Teamsters will
suspend the lawsuit, which challenges two HOS provisions.
The battle on the HOS provisions started in 2003, when the
Bush administration proposed changes to the 60-year-old
regulation. Prior to the current HOS, a workday was limited
to 15 hours of which the driver could only operate a vehicle
for 10 hours. Advocacy groups argue the new provisions,
which allow workers to drive 11 hours out of a 14 hour
workday and allow the workweek to restart after taking 34
consecutive hours off; increase driver fatigue, decrease
drivers’ health and harm the public.
In 2004 and 2007, the federal appeals court rejected the
hours-of-service regulation, but both times the Federal
Motor Carrier Safety Administration (FMCSA) did not make any
significant changes.
While many oppose the current HOS, the American Trucking
Associations strongly supports the current HOS. According to
the ATA, the number of truck-involved fatalities decreased
19 percent from when the rules were first implemented in
2004.
As part of the agreement between the DOT and the advocacy
groups, the DOT will submit a new HOS regulation to the
White House within nine months and implement a final rule
within 21 months. With a new administration, advocacy groups
are hopeful that FMCSA will review all the evidence and
decide to update the HOS regulation.
Insurance solutions
While obeying the HOS regulation may help reduce
accidents, carriers can take additional steps to limit
liability. As a premier provider, Avalon understands your
business and the many exposures you face each day. Let our
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Umbrella
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