REASONABLE
SUSPICION TESTING RULES,
INSURANCE CRISIS OVERVIEW, AND...
HOW TO CHOOSE A SAFE
& SECURE DROP LOT
By Wayne
Schooling
Q:
May a reasonable suspicion alcohol test be based upon any information
or observations of alcohol use or possession, other than a supervisor’s
actual knowledge?
A: No. Information conveyed by third parties of a
driver’s alcohol use may not be the only determining factor used to
conduct a reasonable suspicion test. A reasonable suspicion test may
only be conducted when a trained supervisor has observed specific,
contemporaneous, articulable, appearance, speech, body odor, or behavior
indicators of recent alcohol use.
PRIME
TARGETS FOR CARGO THIEVES
Cargo theft has
always been a problem for the trucking industry, resulting in losses
of at least $12 billion a year. An official of the Federal Bureau
of Investigations recently warned that the agency was too busy trying
to counter terrorists to offer much assistance to motor carriers that
suffer cargo thefts.
As the holidays come upon us, it is not uncommon for consignees to
request that their trailers are left in drop lots, making it possible
to unload their cargo at a more convenient time. As a carrier, you
need to make sure that the liability of the cargo is outlined very
clearly in the contractual agreement, or you could face a cargo claim
that you did not anticipate.
When considering using a drop lot, a motor carrier should conduct
a thorough security assessment of the facility. Many factors play
a role in whether or not your cargo will be there when it’s time to
unload.
You have heard it so many times – the location of a dump lot, a yard,
or warehouse is instrumental in determining the likelihood of theft.
Consider the following location-related variables. 1) The odds of
experiencing criminal activity on a lot located in a city/urban location
greatly increases as compared to a rural or suburban facility. 2)
Criminals like to play it safe, looking for locations which will least
likely get them caught. Obviously, if your lot is located close to
the proximity of a police station, a thief will likely look elsewhere
for his or her next opportunity. 3) How quickly a perpetrator can
plan an escape route will determine the ability of law enforcement
to track him or her down. You want a lot that is easy to get in and
out of, just remember it will be easier for criminals too. Pick a
lot that isn't directly adjacent to a highway on/off ramp. 4) Choosing
a lot in a truck stop may not be a good idea either. The security
at a truck stop, even without a drop lot, is questionable. Many cargo
thieves case truck stops, creating a greater risk to cargo. Typically,
truck stops are near on/off ramps of major highways, offering thieves
a clean get-away. 5) If you leave a trailer in an industrial park,
your cargo’s security should increase. Warehouses and facilities in
industrial parks typically will implement the same security measures
they use for their overall operations for cargo waiting to be unloaded.
A drop lot should be viewed the same as any other facility where a
commodity is stored. It doesn’t matter that it is only a temporary
stop – that’s what cargo theft rings are counting on! Consider the
following attributes when checking out a drop lot. 1) Is it neat and
organized? 2) Does it have adequate security perimeter fencing? 3)
Is the security fencing topped with barbed wire? 4) Is the fence in
good condition, clear of tress and debris? 5) Is there adequate lighting?
6) Are there a minimum amount of gates in and out of the facility?
7) Are the gates locked and secured when the lot is not active?
If you are hauling high-valued or Hazmat cargo, determine if the drop
lot allows for the segregation of these commodities from other staged
trailers. If possible, trailers such as these should be under constant
surveillance. All load-related paperwork and documentation should
never be left with a staged trailer.
Some additional points to consider when reviewing a drop lot include
the use of other security measures. 1) Does the drop lot have a fully
functional exterior alarm system? 2) Does the lot have a security
camera system that covers all areas? 3) Is a guard service used? When
a load is not in your direct control, the risks and liabilities are
greater. Be sure to reduce as many of the variables as you can by
thoroughly inspecting any and all drop lots that you use.
INSURANCE
CRISIS UPDATE
Motor carrier insurance
costs more than doubled after the 9/11 terrorist attacks two years
ago, contributing to the bankruptcies of less-than-truckload (LTL)
carrier Consolidated Freightways and other trucking companies.
However, even before the terrorist attacks, a unique combination of
factors had prepped the industry for large insurance rate hikes. During
the 1990’s, insurance underwriters left the market because the escalating
number of players had driven down insurance rates to levels where
they could no longer generate a profit. The remaining insurance companies
raised their rates to compete, but continued to see reduced investment
income.
At the same time, reinsurers who protect insurance companies against
heavy losses, raised their premiums, preventing some insurance companies
from writing policies for the trucking industry. It was a unique combination
of losses going up, a downturn in pricing, reduction in investment
income, and the international reinsurance crisis. It all came together
in a several-year period and created the problems trucking companies
and insurance companies have had.
On the brighter side, the insurance crisis has been easing in recent
months. The bad news is that it hasn’t happened soon enough. If you
have questions or comments, contact me through the NTA at (562) 279-0557
(in California) or 1-800-805-0040 (outside California). Until next
month, “Drive Safe – Drive Smart!”
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