@Risk

Commercial transportation fleet owners need to better screen and qualify drivers in order to ensure compliance with new federal initiatives, according to the LexisNexis 2011 Commercial Driver Safety Report released last week.

The study revealed several troubling trends indicating a growing gap between compliance and safety programs.  For instance, the research found that commercial driver applications with incomplete or inaccurate information increased 20 percent in 2011, reaching 31.42 percent, up from 11.78 percent in 2010.

In addition, commercial drivers’ motor vehicle reports (MVRs) with adverse findings, which can indicate one or more violations (such as a revoked license), are consistently increasing steadily year after year –rising from 48.2 percent in 2008 to 50.33 percent in 2011.

And, with regard to drug testing: (more…)

The House Oversight and Government Reform Subcommittee held a hearing last week about a proposed rule to limit truck driver time.

The rule, proposed by the Transportation Department, is an effort to reduce the risk and prevalence of fatigue-related truck crashes through improvements in the hours of service (HOS) regulations. Under the proposal, the current 11-hour HOS daily limit for drivers would be reduced to a 10-hour limit. In addition, the 34 hours of time off currently required between each week of driving would have to include at least two midnight-to-6 a.m. periods of nighttime rest.

In a statement, Anne S. Ferro, administrator of the Federal Motor Carrier Safety Administration, offered detailed historical perspective on this rulemaking, as well as an analysis of its economic impact.

From the statement:

With regard to the economic impact of the proposed rule, FMCSA estimated that the regulatory option that included a 10-hour limit on driving time during the work day would impose costs of approximately $1 billion per year with annual safety and economic benefits of approximately $1.4 billion. The net benefits would be $380 million per year. The regulatory option that included an 11-hour limit on driving time during the work day would impose costs of approximately $520 million per year with annual safety and economic benefits slightly greater than $1 billion. The net benefits for this option would be $560 million per year. FMCSA acknowledged that the 10-hour driving time component of the rulemaking contributed more than $500 million to the estimated cost of the rule while providing only $330 million in safety and economic benefits. However, taken as a whole, the regulatory option that included a 10-hour driving time limit was cost-beneficial, based on the Agency’s analysis of the crash data and research.

Not everyone agrees the changes would be beneficial. Opponents of the proposed rule say shortening the daily driving limit would: (more…)

Even though the possibility of a double-dip recession is beginning to loom large, most shippers who took a recent Logistics Management readership survey appear to be adopting a “wait and see” attitude, rather than rushing to  significantly change the way they handle their supply chains or logistics operations.

Take a look at these poll results:

• 78 percent of the 339 survey respondents said they are concerned that the economy is on the verge of a double-dip recession.
• However, only 37 percent said that they plan on making changes to their supply chain operations or logistics planning processes. The remaining 63 percent indicated they have no such plans.

Among those who said they would make changes to their supply chains, the options being considered were quite varied. Some reported they may reduce inventory. Others said they may slow down manufacturing or production operations while waiting for a more sustained recovery. A sporting goods shipper said he/she would consider numerous alternatives, including evaluating supplier capacity, improving delivery time frame (particularly for international suppliers), reviewing internal procedures, adhering strictly to S&OP calendar and assessing systems used.

On the logistics side, survey respondents who are considering changes said they may: (more…)

Business logistics costs last year were on par with 2005 and still well below the pre-recession years, according to the 22nd annual State of Logistics Report from the Council of Supply Chain Management Professionals.

Since 1988, the report has tracked and measured all costs associated with moving goods through the US supply chain, and this year’s analysis shows that: (more…)

Trucking companies are preparing for the new Compliance, Safety, Accountability Act (CSA), particularly the new regulations for hazardous waste transporters, which are likely to directly impact driver retention.

According to ACE Westchester, the US-based wholesale-focused insurance operation of the ACE Group, the basic premise of CSA is simple: driver infractions, incidents, accidents, inspections – while on duty –will be aggregated and attributed to the motor carrier the driver worked for at the time of the incident. As a result, a motor carrier’s rating will be reflective of the drivers they employ.

Roger Murphy, Assistant Vice President, ACE Westchester Environmental, sees these new regulations as impacting every aspect of company operations for those hauling hazardous materials.

“CSA is our collective new reality, and it will only become stronger as the data is collected, aggregated, and translated into specific motor carrier and driver ratings,” he said. “While these new regulations may force some to rethink protocols, the end will hopefully justify the means: to have every driver return home safely, every day.”

If you’re wondering how these new regulations will impact your business, be sure to read ACE Westchester’s latest report, What Does CSA Mean for Commercial Trucking Companies?

This four-page white paper explains key aspects of CSA and how the new requirements will accelerate the uploading of data regarding roadside inspections, citations and accidents, thus enabling a motor carrier’s rating to be updated on a monthly basis. (more…)