Skip to content
Search AI Powered

Latest Stories

newsworthy

FMCSA to propose major change in formula for rating motor carrier fitness

Agency to replace three-tier criteria with one determination; industry groups to oppose measure.

The Federal Motor Carrier Safety Administration (FMCSA) said Friday it plans to change its formula for assessing the safety of motor carriers by replacing its three-tier rating with a single fitness determination. The action will result in an exponential increase in the number of carriers FMCSA can evaluate per year, it said.

FMCSA, a subagency of the Department of Transportation, said it will integrate on-road inspection data with the results of its carrier investigations to more effectively target its limited resources at carriers that demonstrate higher crash risks. Carriers found to be unfit to operate will be given that classification, at which time they will be ordered out of service and not reinstated until they've shown improvement, FMCSA said.


The agency plans to publish a notice of proposed rulemaking ont Thursday. Parties will have 60 days from the publication date to file comments, and will have an additional 30 days for responses.

The current standard, in effect since 1982, assigns three types of safety determinations: Satisfactory, conditional, and unsatisfactory. Land Air Express of New England Ltd., a large less-than-truckload carrier based in Williston, Vt. that FMCSA put out of service Dec. 29, was reinstated Jan. 8 with a conditional rating. FMCSA said in removing the out-of-service order that it will closely monitor the carrier's fitness for the next two years.

FMCSA said a streamlined approach to safety grading will ramp up its productivity, allowing it to determine the fitness of about 75,000 carriers a month. Today, FMCSA investigates only 15,000 carriers a year, with less than half of those even receiving a safety rating, it said. There are an estimated 530,000 registered motor carriers in the U.S., according to FMCSA data.

The agency's proposal is its latest effort to remove as many unfit truckers from the road as possible with a relatively modest number of inspectors. In 2010, FMCSA rolled out "Compliance, Safety, and Accountability" program (CSA), which grades carriers based on roadside performance data collected in seven categories and then assigns performance scores under what is known as a "Safety Measurement System," or SMS. Industry has argued for the past six years that the scores are based on flawed methodology that tars safe carriers with the same broad brush as unsafe ones.

The five-year federal transport-spending bill signed into law last month directed FMCSA to commission a three-year study by the Transportation Research Board (TRB) of the CSA program. The bill also required FMCSA to remove SMS scores and analysis from public view, but allowed the raw data used to compile the scores to remain.

FMCSA said Friday that, under its proposal, a carrier's fitness would be based on its performance under five of the seven categories, along with the results of carrier investigations and crash reports. The proposed rule would require written proof of a "significant pattern of noncompliance" for a carrier to fail in one of the categories. For example, the agency would require a minimum of 11 inspections with violations in a single "Behavior Analysis and Safety Improvement Category" (BASIC) within a 24-month period before a motor carrier could be eligible to be identified as "unfit." If a carrier's performance meets or exceeds the failure standards in the rule, it would then fail that BASIC, FMCSA said.

In a nod to industry claims that carriers are graded on a curve that includes others, FMCSA said a carrier's status would not be affected by the performance of other truckers.

The Alliance for Safe, Efficient, and Competitive Truck Transportation (ASECTT), a group of shippers, carriers, and freight brokers that has fought the FMCSA's safety-rating process for years, said in a statement Friday that the agency proposed a "quickie rule" in an attempt to get around Congressional directives. FMCSA is also thwarting Congressional intent by improperly using data generated in the SMS, the group alleged. The group said it is likely on firm legal grounds to challenge the FMCSA measure, but said it would withhold more concrete judgment until after a full review.

ASECTT said FMCSA is allowing parties only two months to respond to a 267-page proposal that has been in the works since the agency first proposed revamping the fitness determination process in 2007.

The group added that FMCSA is putting the "cart before the horse" by issuing its proposal more than two years before the TRB's deadline for completing its analysis of the CSA methodology. Forcing all parties to wait for TRB's report will be a waste of public and private resources if the board does the expected and fails to validate the CSA methodology, ASECTT said.

The Latest

More Stories

Keepin' it fresh

Keepin' it fresh

Meal kit producer HelloFresh relies on automation to guarantee fresh and accurate shipments to customers—and that reliance has only increased as the company has grown from a small German startup to a global enterprise serving consumers in 18 countries. Surging demand, expanding menus, and the ever-present challenge of meeting high food quality and safety standards add complexity to the HelloFresh model, necessitating a focus on technologies that can give the business an edge as it grows.

Zeroing in on the U.S. market, company leaders took a leap nearly five years ago that would help HelloFresh meet burgeoning local demand and set the stage for further expansion of its menu and capabilities. They added a brand-new distribution center (DC) in Irving, Texas, that would feature the most advanced technology in the company's North American fulfillment network to date.

Keep ReadingShow less

Featured

instawork screen cap of warehouse worker profile

3PL LVK will partner with Instawork to find warehouse labor

The third-party logistics provider (3PL) LVK will partner with Instawork, whose app connects hourly professionals with local jobs, with the partners saying the move will answer a structural shortage of warehouse workers.

The deal will work by integrating LVK’s warehouse operations software with Instawork's network of vetted hourly workers, creating a lever to scale up warehouse operations across North America, they said.

Keep ReadingShow less
chart of consumer spending

Consumers “took a breather” on January spending after holiday rush

Shoppers spent less in January than they did during the busy holiday month before but retail sales had strong year-over-year gains nonetheless, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions, released today by the National Retail Federation (NRF).

“Consumers pulled back in January, taking a breather after a stronger-than-expected holiday season,” NRF President and CEO Matthew Shay said in the report. “Despite the monthly decline, the year-over-year increases reflect overall consumer strength as a strong job market and wage gains above the rate of inflation continue to support spending. We’re seeing a ‘choiceful’ and value-conscious consumer who is rotating spending across goods and services and essentials and non-essentials, boosting some sectors while causing challenges in others.”

Total retail sales, excluding automobiles and gasoline, were down 1.07% seasonally adjusted month over month but up 5.44% unadjusted year over year in January, according to the Retail Monitor. That compared with increases of 1.74% month over month and 7.24% year over year in December.

Likewise, the Retail Monitor calculation of core retail sales (excluding restaurants in addition to automobile dealers and gasoline stations) was down 1.27% month over month in January but up 5.72% year over year. That compared with increases of 2.19% month over month and 8.41% year over year in December.

NRF says that unlike survey-based numbers collected by the Census Bureau, its Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.

chart of trucking costs per mile

Uber Freight: Trump tariffs will likely be avoided after pause ends in March

As U.S. businesses count down the days until the expiration of the Trump Administration’s monthlong pause of tariffs on Canada and Mexico, a report from Uber Freight says the tariffs will likely be avoided through an extended agreement, since the potential for damaging consequences would be so severe for all parties.

If the tariffs occurred, they could push U.S. inflation higher, adding $1,000 to $1,200 to the average person's cost of living. And relief from interest rates would likely not come to the rescue, since inflation is already above the Fed's target, delaying further rate cuts.

Keep ReadingShow less
chart of US imports

NRF: Container imports remain high after Trump tariff threats

Days after tariff threats by the Trump Administration against Canada and Mexico were paused for a month, imports at the nation’s major container ports are expected to remain high, as retailers continue to bring in cargo ahead of the new deadline and to cope with elevated tariffs on China that did occur, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

Part of the reason for that situation is that companies can’t adjust to tariffs overnight by finding new suppliers. “Supply chains are complex. Retailers continue to engage in diversification efforts. Unfortunately, it takes significant time to move supply chains, even if you can find available capacity,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release.

Keep ReadingShow less