Transferring Liability and Equipment Between Motor Carriers

Posted on November 01, 2016

shutterstock_348061355 amSometimes motor carriers need to exchange equipment. However, this raises questions about liability. In order for authorized motor carriers to interchange equipment, they must address the following.

Interchange Agreement

Motor carriers need a written contract or document that describes the equipment. This document should also detail how the motor carrier will use the equipment and how much compensation is required for the equipment’s use. All involved motor carriers must sign the agreement.

Operating Authority

Any motor carrier who wants to participate in an equipment interchange must register with the Secretary of Transportation. The Secretary will then supply the transport of equipment at the designated location for the physical exchange.

Bill of Lading

The original motor carrier must issue a bill of lading in order for the equipment interchange to progress. The bill of lading provides a receipt of services rendered.

Identifying the Equipment

The motor carrier receiving the equipment must identify all power units. The motor carrier must have a document verifying they are operating the equipment. The document should provide other details as well such as the date and time the motor carrier assumes responsibility for the equipment.

Connecting Carriers and Liability

Any motor carrier who transfers equipment from one motor carrier to another assumes ownership of the equipment. This applies to both leasing and returning equipment.

Changes at UIIA – Binding Arbitration, Per Diem, and more

Posted on October 24, 2016

shutterstock_390898246 - CopyThe Uniform Intermodal Interchange & Facilities Access Agreement (UIIA) provides uniform industry processes and procedures for the exchange of intermodal equipment between trucking companies, railroads, companies that lease equipment, and ocean carriers. As such, it behooves individuals within the transportation industry and UIIA participants to stay up to date with the latest changes at the UIIA.

Tire Tread Damage

Effective September 19, 2016, the UIIA revised its definition for slid flat tire damage. The new definition indicates a tire experienced flat tire damage if the removed tread wore down to 2/32 of an inch or less in the flat area. This only holds true if the unaffected tread is greater than 4/32 of an inch.

This type of damage occurs when a driver brakes suddenly or when a vehicle begins to slide out of the driver’s control. It often leaves behind skid marks on the asphalt. Proper tire maintenance and replacement improve safety, so inspect your tires for tread wear and damage often.

Proposed Changes

The Intermodal Interchange Executive Committee (IIEC) held a meeting on September 20, 2016. The committee put forth two UIIA modifications with unanimous approval.

Binding Arbitration Guidelines

The IIEC proposed changes to Item D.10 under their binding arbitration guidelines. For claims in regards to maintenance and repair, the invoicing party must provide an Equipment Interchange Receipt or Recorded Image from the time of the interchange. It must clearly show the condition of the equipment. If the individual sending the invoice cannot produce either of these documents, the party receiving the invoice is not responsible.

Free Days, Per Diem, Container Use, Chassis Use/Rental and/or Storage/Ocean Demurrage

The provider has 60 days from returning equipment to invoice the motor carrier for Per Diem, Container Use, Chassis Use/Rental and/or Storage/Ocean Demurrage charges. If the provider fails to invoice the motor carrier in this period, they forfeit the cost.

However, if the provider sends the invoice to the wrong party, they can re-invoice the correct motor carrier. They have 30 days from when the incorrect party submits a charge dispute or they can work within the original 60 days, whichever is later. However, this window is not indefinite. The provider can only recoup expenses for an incorrectly billed charge if they resubmit the invoice within 90 days of returning the equipment.

The proposed changes above are open to public commentary through October 31, 2016.

Trailer Interchange Insurance Coverage Explained

Posted on October 18, 2016

trailer-interchangeTruckers and motor carriers need a variety of insurance types to ensure they have full coverage. Understanding trailer interchange insurance can be confusing. Find out more about what it is, who needs it, and other important details below.

What is Trailer Interchange Insurance?

This is a type of coverage available to truckers and motor carriers. It provides coverage in the event that the insured damages a trailer that belongs to another individual. It is not uncommon for truckers and motor carriers to transport trailers that belong to a different motor carrier. This is how drivers can trade trailers en route to maintain scheduling demands. This type of arrangement is known as a trailer interchange agreement. The trailer interchange insurance labels the trailer possessor as the responsible party. It provides coverage in the event of an accident, fire, theft, and other types of physical damage.

Who Needs It?

If you make use of trailer interchange agreements, then you need trailer interchange insurance. The purpose is to protect you while you are moving cargo or a trailer that is not yours. The truck driver or motor carrier moving the trailer is almost always responsible for paying for damages should they occur.

Things to Know

Like other types of insurance, trailer interchange insurance has limits and deductibles. Limits and deductibles go hand-in-hand. The limit is the max amount of coverage an insurance provider will provide for a claim. Another way of looking at it is it is the max value of the trailer. The deductible is the amount the driver or motor carrier pays out of pocket in the event of a claim.

Select your limit and deductible wisely. Lower limits and high deductibles often cost less, but they can come back to haunt the insured. For example, let’s say the insured has a $15,000 limit with a $5000 deductible and the trailer they’re driving gets stolen. The driver would pay the $5000 up front and their insurance provider would pay up to $15,000 to replace it.

However, if the trailer was worth more than $15,000, that difference in cost is up to the driver to pay. High deductibles can be a burden as well. The insured should be certain they can pay the deductible at any given time if necessary.

Through an exclusive arrangement we are also able to provide coverage for any Trailer or Container in the insured’s care, custody and control, as most policies require a trailer interchange agreement in order for coverage to apply. This is a much broader application and prevents any issues of coverage for the driver and motor carrier/steamship line.

For more information on trailer interchange coverage and other transportation policies, contact us.

Webinar: Pre & Post Trip Vehicle Inspections to Avoid DOT Penalties and Reduce Costs

Posted on October 11, 2016

Join Interstate Motor Carriers for this educational webinar to learn how effective pre-trip and post-trip vehicle inspection practices reduce costs and DOT penalties. Expert speaker Rob Dowling, Transportation Safety & Loss Control Director at The Capacity Group, will review the key components of pre-trip and post-trip vehicle inspections, and explain the consequences of failing to comply. Topics include:
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* Pre-Trip Inspection Requirements
* Post-Trip Inspection Requirements
* Driver Vehicle Inspection Reporting & Responsibilities
* Recordkeeping, Compliance & Audits

Date & Time: Wed, Oct 26, 2016 12:00 PM – 12:30 PM EDT

To Register: https://attendee.gotowebinar.com/register/5637938663285566210

How to Eat Healthy While on the Road

Posted on October 04, 2016

appleMaintaining your health as a commercial driver should be a high priority. Unfortunately, eating healthy while on the road is not always convenient and can even seem impossible at times. However, proper planning and smart diet choices can help you avoid weight gain while traveling. Here are some tips to help you maintain your waistline while on the road.

Invest in a Crockpot

Many crockpots can plug into low voltage cigarette lighters or other standard vehicle outlets. Opt for a smaller crockpot that functions on less voltage such as a 12 V crockpot. It should not indicate it is for household use only. Invest in crockpot liners to reduce clean up time. It may also be wise to use crockpot lid clips to ensure the lid stays on as you drive over bumps.

By preparing your meals in advance, you can avoid last minute food decisions. If you wait until you are starving to eat, the likelihood of eating a healthy meal diminishes. Plus, with a crockpot you also get to choose the ingredients yourself. This allows you to control your fat intake and ensure you are eating a nutritious meal.

Eat Small and Frequent Meals

If you gorge yourself on sumptuous meals two or three times per day, you will eat more than you intended to. By eating more often throughout the day, you are less likely to binge eat. To help avoid this, be sure to eat breakfast every day. If you eat smaller, nutrient-dense meals every two to three hours over a twelve hour period you can better control your food intake.

Snacking: Know Yourself

It is easy to tell yourself to stop snacking throughout the day. It is another matter to follow through with the advice. If you know that you are a frequent snacker, take steps to diminish their weight gain effects. For example, instead of eating chips and cookies keep healthy options on hand such as granola, nuts, and fruit.

The S Word

It’s a devious four letter word that adds inches to your waistline: soda. Reduce your soda intake or cut it from your diet altogether if at all possible. You should also try to cut juice and energy drinks as well. Water is the best choice for your health. Plus, sometimes individuals mistake dehydration as hunger. If you stay hydrated, you can reduce the frequency you feel the urge to snack. To learn more about healthy and safety practices for trucking professionals, contact us.

Hours of Service Exemptions

Posted on September 27, 2016

shutterstock_50164954 - Copy (2)It’s important for every commercial operator to understand the Hours of Service rules. But knowing when you’re exempt from these rules can also prove very useful. A brief review of the core rules:

  • 30 Minute Break: A non-passenger-carrying commercial operator must take a break of at least 30 minutes from driving after an 8 hour period of driving. Non-driving work related activities can be performed during this time.
  • 14 Hour Rule: A non-passenger-carrying commercial operator must stop driving after being on-duty for 14 consecutive hours.
  • 11 Hour Rule: Within the aforementioned 14 hour window, a commercial operator may drive a maximum of 11 hours.

So now let’s take a look at some of the exemptions:

  • Providing Emergency Assistance: Providing direct assistance to an emergency as defined by the FMCSA suspends all Hours of Service regulations.
  • 16 Hour Extension: The 14 Hour Rule is extended to 16 hours for those who qualify for the 100 air mile provision or 150 air mile provision as defined by the FMCSA.
  • Adverse Driving Conditions: Unanticipated adverse weather conditions extend the 11 Hour Rule to a 13 hour limit.
  • 3o Minute Break Exemption: All drivers who qualify for 100 air mile provision status are exempt from the 30 minute break rule.

Understand when and how these exemptions apply can make you safer and more efficient as an owner operator or as a large fleet. To learn more about transportation news, compliance, and coverages, contact us.

FDA Regulations: FSMA Implementation & Compliance

Posted on September 20, 2016

shutterstock_298138835-copyThe Food Safety Modernization Act (FSMA) has brought a number of relevant changes to the transportation industry regarding the handling of both human and animal food. The rule exists to reduce the likelihood of contamination, and requires all shippers to develop and implement written procedures adequate to ensure sanitary handling of the products in question.

Which Businesses Must Comply with the FSMA?

With some exceptions (noted below), the final rule applies to shippers, receivers, loaders and carriers who transport food in the United States by motor or rail vehicle, whether or not the food is offered for or enters interstate commerce. Persons in other countries who ship food to the United States directly by motor or rail vehicle (from Canada or Mexico), or by ship or air, and arrange for the transfer of the intact container onto a motor or rail vehicle for transportation within the U.S., if that food will be consumed or distributed in the United States.

Exemptions to the FSMA Include:

  • Shippers, receivers, or carriers engaged in food transportation operations that have less than $500,000 in average annual revenue
  • Exporters who ship food through the United States (for example, from Canada to Mexico) by motor or rail vehicle if the food does not enter U.S. distribution.
  • Transportation activities performed by a farm
  • Transportation of food that is transshipped through the United States to another country
  • Transportation of food that is imported for future export and that is neither consumed or distributed in the United States
  • Transportation of compressed food gases (e.g. carbon dioxide, nitrogen or oxygen authorized for use in food and beverage products), and food contact substances
  • Transportation of human food byproducts transported for use as animal food without further processing
  • Transportation of food that is completely enclosed by a container except a food that requires temperature control for safety
  • Transportation of live food animals, except molluscan shellfish

The FSMA Key Requirements

  • Vehicles and transportation equipment: The design and maintenance of vehicles and transportation equipment to ensure that it does not cause the food that it transports to become unsafe. For example, they must be suitable and adequately cleanable for their intended use and capable of maintaining temperatures necessary for the safe transport of food.
  • Transportation operations: The measures taken during transportation to ensure food safety, such as adequate temperature controls, preventing contamination of ready to eat food from touching raw food, protection of food from contamination by non-food items in the same load or previous load, and protection of food from cross-contact, i.e., the unintentional incorporation of a food allergen.
  • Training: Training of carrier personnel in sanitary transportation practices and documentation of the training. This training is required when the carrier and shipper agree that the carrier is responsible for sanitary conditions during transport.
  • Records: Maintenance of records of written procedures, agreements and training (required of carriers). The required retention time for these records depends upon the type of record and when the covered activity occurred, but does not exceed 12 months.

Compliance Dates

  • Small businesses must comply by June 6, 2018
  • Other businesses must comply by June 6, 2017

To learn more about transportation regulations, coverages, and news, contact us.

 

Massive Increase in Traffic Fatalities for 2015

Posted on September 13, 2016

truck-driver-distracted-textingThe National Highway Traffic Safety Administration (NHTSA) released the final data on car crash fatalities from 2015 and the numbers are not good. For the past five decades, traffic-related deaths have been on the decline. This past year saw a 7.2% increase in traffic fatalities compared to the previous year—the highest it’s been since 2008. The nation hasn’t seen a one-year increase of this size since 1966.

In just a decade, safety programs and vehicle improvements helped reduce traffic-related deaths by nearly 25%. This dramatic increase in traffic fatalities spurred the White House into action. The Department of Transportation (DOT) and NHTSA are conducting an investigation to try and determine the cause of the rising traffic deaths. Even without the completed report, they have some preliminary thoughts behind the increase in fatalities.

More jobs and cheaper fuel. Both of these factors correlate to an increased number of drivers on the roadways. This includes driving for leisure (e.g. vacations and day trips) and young people driving. Total vehicle miles traveled in 2015 rose by more than 3.5%. That is the largest surge in almost 25 years.

Poor safety habits. Driving safety campaigns seem to have lost their edge in 2015. Almost half of the passenger vehicle fatalities involved the occupant not wearing a seat belt. Nearly one third of the fatalities involved drunk driving or speeding. One in ten involved distracted driving.

In essence, there are more drivers making poor safety decisions. The data shows that driving drunk, distracted driving, speeding, and not wearing a seat belt all contribute to an increase in traffic-related deaths. Drivers can reduce their risk by making safe choices such as wearing their seat belts, following the speed limit, and staying focused on the road. This increase in passenger vehicles and poor safety habits poses a serious risk to truck drivers. To learn more about reducing trucking risks, contact us.

Should the DOT Impose a Speed Limit on Heavy Duty Trucks?

Posted on September 06, 2016

shutterstock_211095490 - 1920x750The U.S. Department of Transportation (DOT), in partnership with the National Highway Traffic Safety Administration (NHTSA) and the Federal Motor Carrier Safety Administration (FMCSA) released a proposal August 26, 2016 that would require commercial vehicles to be equipped with speed limiting devices (also known as speed limiters.) The new regulation would apply to trucks weighing more than 26,000 lbs.

The proposal does not include a specific speed to which trucks will be limited. The speed limits that have been suggested include 60, 65 and 68 mph; additional research and analysis needs to be completed before a decision is reached.

The proposal states that a standard will be set and each vehicle will have its device set to that speed limit when it is manufactured and sold. Every vehicle that qualifies under the ruling will be equipped with a device that will read the vehicle’s current speed setting as well as its past settings through its onboard diagnostic connection.

Interstate carriers who operate vehicles that meet the requirement will be required to maintain the speed limiting device for the life of the vehicle.

“Even small increases in speed have a large effect on the force of an impact. Setting the speed limit on heavy vehicles makes sense for safety and environment” said NHTSA Administrator Mark Rosekind.

According to the DOT, review of data indicates that limiting the speed of heavy vehicles reduces the severity of crashes and reduces fatalities and injuries. In addition to saving lives, the DOT maintains that implementing the speed-limiter devices could save lives and more than $1 billion in fuel costs each year, making the proposed regulation a win for safety, reducing fuel costs for transportation companies as well as helping the environment.

Many carriers that are already using speed limiter devices voluntarily have experienced an increased level of on-road safety as well as fuel efficiency and equipment lifespan with little or no negativity to productivity.

The DOT is seeking public comment on the rule for 60 days following its official publication in the Federal Register. The DOT is seeking input on two issues:

  1. What should the speed limit for heavy-duty trucks be?
  2. Should the mandate apply to all trucks or only new trucks?

The DOT will use comments submitted by the trucking industry as well as other interested parties when developing the actual mandate. To learn more about trucking regulatory compliance, risk management, and coverages, contact us.

Webinar: FMCSA Mandated Responsibilities for Intermodal Transportation

Posted on August 22, 2016

Interstate Motor Carriers invites you to a complimentary, educational web seminar on the FMCSA mandated responsibilities of motor carriers, drivers, and IEPs involved in intermodal transportation. Rob Dowling, Transportation Safety & Loss Control Director at The Capacity Group, will provide an overview of intermodal transportation and related FMCSA regulations. All businesses involved in intermodal transportation should attend this webinar. Key topics include:

  • Overview of Intermodal Transportationshutterstock_348061355 am
  • Motor Carrier & Driver Responsibilities
  • Intermodal Equipment Provider Responsibilities
  • FMCSA Roadability Safety Fitness Procedures
  • UIIA & Automated DVIR Processing Guidelines
  • FMCSA Requirements for Intermodal Equipment Providers

Date & Time: Wed, Sep 14, 2016 12:00 PM – 12:30 PM EDT
Registration URL: https://attendee.gotowebinar.com/register/1201698415668513795