10-4 Magazine

Waynes World - November 2003

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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