Waynes World - October 2010
FRAUDS, BROKER'S BONDS, HOS SUPPORTING
DOCUMENTS, ONBOARD RECORDERS, AND...
VARIOUS TRUCKING NEWS
& REGULATION UPDATES
by Wayne Schooling
COURT OK'S PLAN TO BAN OWNER OPERATORS IN THE PORT. In a recent decision in a two-year lawsuit filed by the American Trucking Association (ATA), U.S. District Judge Christina Snyder determined that the clean-trucks program, which was adopted by the Port of Los Angeles and will eventually ban owner operators from entering the port, is legal because the Port acted as a “market participant” out of business necessity and therefore is exempt from the law that gives only the federal government the authority to regulate interstate trucking. Although Judge Snyder ruled that several provisions contained in the Port’s concession agreements challenged by ATA fall under federal preemption, she nonetheless said that the entire clean-trucks plan was legal because the Port did not act in a regulatory role when it adopted the diesel emissions reduction plan. The ATA said it would appeal the ruling.
IS CSA 2010 MAKING TIRE DEMAND AND PRICES SPIKE? As the advent of CSA 2010 approaches, it seems like more motor carriers are paying attention to maintenance and tires. Trailer manufacturers say they are having problems finding enough tires to meet the surge in equipment orders, forcing them to take stiff price increases and offer their customers less familiar tire brands. Tire producers, meanwhile, said they were not prepared for the jump in demand, with some reporting their orders this year have been up to 400% more than 2009 levels!
CHASSIS RESPONSIBILITY ISSUES CAUSE DIFFICULTIES FOR CARRIERS. Now that the federal government has finally cracked down on chassis maintenance, the steamship lines, who are now responsible for all of the necessary upkeep and repairs on their chassis, are finding out what truck drivers already knew – that maintenance is expensive. Now, in an effort to deflect some of those added costs, many steamship lines are beginning to charge chassis rental fees to the truckers that use them. Intermodal carriers can expect a tough operational and financial transition period as the steamship lines move the responsibility for chassis maintenance back onto the motor carriers. Customers will ultimately pay the fees, such as the $11-a-day rental fee now charged by Maersk’s “Direct Chassis Link” program.
CHECK YOUR BROKER'S BOND! If you do work for brokers, you should be aware that the Transportation Intermediaries Association is pressing the Federal Motor Carrier Safety Administration (FMCSA) to shut down companies that fail to provide adequate funds to reimburse fleets when brokers fail to pay carriers. The trade group’s move follows the FMCSA’s decision in July to revoke the authority of Oasis Capitol Inc. of La Mirada, CA because it failed to properly fund the $10,000 bond or trust fund brokers must obtain to operate. If you use brokers, now is the time to make sure that they have a bond or if the one they have is still legit. In a letter sent to brokers that were listed as having an Oasis trust fund, the FMCSA told the brokers that they faced revocation of their authority if they didn’t provide proof of alternative arrangements for a bond or trust fund. They also advised these brokers that a “letter of credit” was not adequate evidence of financial responsibility.
HOURS-OF-SERVICE SUPPORTING DOCUMENTS. The American Trucking Association (ATA) asked a federal appeals court to reject the FMCSA’s request to put on hold a lawsuit that would require the agency to publish rules stating what evidence fleets must retain to verify their drivers’ logbooks. The ATA also said that the FMCSA’s request was unreasonable because the agency has failed repeatedly to own up to its obligations to issue this rule. The rule is expected to include an expanded mandate for electronic onboard recorders.
THE FMCSA MAY SEEK A BROADER MANDATE FOR ONBOARD RECORDERS. Sources say that the FMCSA may be seeking an even more expansive mandate for electronic onboard recorders (EOBRs) than it indicated earlier. FMCSA published a final rule in April that makes it mandatory to install EOBRs for fleets that have a poor record of compliance with hours-of-service rules, but now they are talking about requiring EOBRs in trucks that haul hazardous materials and new trucking companies. If you haven’t checked out your company on the CSA 2010 Carrier Data Review site to see where you and/or your company stand, what are you waiting for? Now is the time to take a few minutes to do it. All it takes is your U.S. DOT number and your PIN number. If you don’t know or forgot your PIN, you can request one on the site at csa2010.fmcsa.dot.gov. Congress wants EOBRs in all trucks, so we will just have to wait and see how this all plays out.
SOME FRAUD UPDATES. Last year, back on July 31, 2009, the U.S. DOT Office of Drug and Alcohol Policy & Compliance issued a Public Interest Exclusion (PIE) against Michael R. Bennett of Workplace Compliance Inc. of Texas and North Carolina for fraudulently acting as a Medical Review Officer on DOT-regulated drug tests without being a licensed physician. Mr. Bennett was sentenced to 22 months in federal prison and has to make restitution to the government and victims in the amount of $209,000. In a case in California, the State recently filed an accusation against a chiropractor that alleges misrepresentation, endangerment of the public and conviction of crime (he already plead guilty to a felony count for declaring a Medical Examination Report for Commercial Driver Fitness Determination to be true, when in fact, he knew it to be false). In yet another case in California, a former DMV worker and two of his friends will serve time for selling driver’s licenses for $500 to people who had not passed the driving test. All three pleaded no contest to one felony charge. Two were sentenced to six months in jail and the third was given one year in jail. Be careful – there are plenty of cheats out there waiting to get you! Stay tuned for more updates, as several new rules are coming this January.
~ NTA is a name and organization you can trust. Not only is our website (www.ntassoc.com) an official US DOT Internet Training Site, but we are also the administrators of a Nationally Accredited Drug and Alcohol Program. If you have any questions, call me at (562) 279-0557 or send me an e-mail at wayne@ntassoc.com. Until next month, “Drive Safe – Drive Smart!”