Posted on Mon, Jul 19, 2010 @ 10:49 AM
The results from the early CSA 2010 testing opened quite a few eyes when the data first started to surface. The early reports showed that out of the 1,500 carriers who were tested; 69% of them will face some sort of federal intervention. Warning letters will be issued during the Fall and Winter of 2010. Roadside inspections will also start around the same time. All of this is in an attempt to lower the number of violations in future years.
To rate fleets, CSA 2010 will use 7 different criteria known as the BASICs. The 7 are:
- driver fitness
- unsafe driving
- fatigued driving
- controlled substance/alcohol
- crash indicator
- vehicle maintenance
- improper landing/cargo securing
The fleets are given a score based for each category and their score will determine whether or not intervention will occur. Out of the 1,500 carriers who were rated, 396 had one score above the intervention threshold, 288 had two, 163 had three, 76 had four, 34 had five, 9 had six, and 4 were above threshold in all seven. (more info at FleetOwner.com) The 4 that were over threshold in all seven of the BASIC categories were all in the Federal Motor Carrier Safety Administration’s (FMCSA) largest fleet. The FMCSA’s largest fleet contains carriers with a peer group rating of 500 power units or more. Drew Anderson, Director of Sales at Vigillo, (the risk management company that created the CSA 2010 scorecard) “I don’t believe that larger fleets are less safe. I think that statistic points out the inequity of [FMCSA’s] peer group rankings based only on the number of power units.” He continued, “I think once they introduce miles driven into the (rankings), the number of larger carriers (above the intervention thresholds) will go down.”
CSA 2010 compared to SafeStat
Under the current system, SafeStat, only 1.3 percent of the same 1,500 fleets will undergo intervention. That is only 20 fleets compared to the 1035 fleets that will require intervention within the CSA 2010’s standards. By Spring 2011, the CSA 2010 will be fully implemented which will impact over 750,000 companies. (additional details: TransportTopics.com). Although the CSA 2010 will not be in effect until the middle of next year, companies have been previewing their own data since April 12th and will continue to preview it until November 30th. (see the CSA 2010 Rough Timeline). The CSA 2010 was originally scheduled to take full effect in December 2010, but it was delayed so more data could be gathered. Once the full implementation is complete intervention will begin. The before-mentioned warning letters and road side inspections will be accompanied by on and off-site investigations, safety plans, and out-of-service orders.
Consequences of CSA 2010
The actions brought about by the CSA 2010 should vastly decrease each fleets score and make for much safer driving. About 80 percent of all violations are “driver controlled” such as moving violations and improper vehicle maintenance. The tighter guidelines should bring down the number of violations altogether, but it will also decrease the number of driver-related infringements. Another surprising statistic that has come to light as the result of these early reports is that 53 percent of all speeding tickets result in a warning and not a citation. This is good news for drivers, however it makes it more difficult for the CSA to account for all moving violations. This could mean that there are possibly more infractions than are reported; a scary thought considering the already elevated scores some fleets were given by the CSA 2010.
Posted on Tue, Mar 02, 2010 @ 08:55 AM
Trucking, more specifically over the road (OTR) trucking is a unique business unlike any other. Since “deregulation” we have seen a pricing/rate pendulum swing back and forth repeatedly favoring shippers in times of over-capacity (too many trucks in the industry) and truckers in times of under-capacity. That said, rates today remain substantially unchanged from where they were 20 years ago. This despite dramatic increases in trucks, fuel, insurance and every other associated cost.
What does this mean for the industry? What does this portend? As the economy rebounds however slowly from the most recent recession (depression?) we will enter another period of under-capacity. This will most certainly drive rates up as shippers vie for available trucks to move their freight. In previous cycles truckers would put more trucks into service and this would mitigate pressure on rates. This time that scenario is doubtful at best. Why?
The quickest way for most carriers to increase capacity has always been to sign on owner operators or independent contractors. That may not be so easy this time. Many owner operators have lost their trucks due to repossession or sold them and simply walked away from the industry. Getting that capacity back in the credit reality of this post-recession period is therefore dubious at best.
The other downside of the virtual zero-growth rates of the past two decades is the effect on recruiting new drivers for company-owned trucks. OTR trucking invariably pays drivers by the mile or a percentage of the load. Both amounts obviously are tied to the rate. No rate growth equates to no pay growth. OTR truckers are, for all intents and purposes, the last true commission employees in our economy. No guarantees. No minimums and generally no draw. Worse still, is that they can’t set their own hours or control their income.
Why? Because the deregulation we’ve all heard about is somewhat of a misnomer. While rates have been deregulated, federal and state regulation of trucking equipment and maintenance, driving hours and driver minimum qualifications, hiring and training has actually expanded every year. Drivers are limited in the hours they can drive, and for good reason, effectively capping their earning ability. The result is a lack of new entrants at a time when aging baby boomers are retiring at an alarming rate.
Like them or hate them, America needs trucks. Everything you touch today, everything, moved at some time in the supply chain by truck. Every item in every grocery, department, and convenience store got there by truck. Everything in your office even your car moved by truck. From raw material to finished product, even if it moved by plane, train or ship part way it ultimately came by truck. An expanding population will require even more trucks at a time when drivers have walked away from the industry or are retiring and new entrants are scarce. Without trucks, America grinds to a halt.
Think that’s hyperbole? You only need look back at shortages we have experienced in grocery stores, gas stations, etc. around the country after natural disasters. Empty store shelves after Katrina… gas stations without fuel after Rita… and to a lesser extent elsewhere after blizzards, etc. While these shortages were due to infrastructure problems (trucks couldn’t get through to the stores) trucks without drivers will not be able to deliver goods either. Significant driver shortages, such as those forecast by the Department of Labor over the next 10 – 20 years will result in product shortages and empty shelves. Shippers simply will not be able to get their raw materials or get their finished product to stores.
There is only one solution… but it’s expensive. Driving jobs need to be desirable and to be desirable they need to pay good wages. Driver pay needs to rise and rise significantly. The only way for that to happen is for shipping rates to rise significantly also… 30 – 40%. Shippers don’t want to hear it and ultimately the costs will be passed along to consumers but the alternative, the status quo, is much less palatable.
Written by Kevin Mullen, Director-Safety ADS Logistics Co, LLC