
Insurance For All Your Commercial Trucking Needs. www.InsureMyRig.com. Please contact us today for a no pressure and speedy quote. Contact Us Or call today 888-931-1934 Our decades worth of experience will make your purchase of commercial insurance easier on you!
The Roemer Report On-Line, August , 2004
CDL PROGRAM SCRUTINIZED: Citing concerns that almost anyone can get a CDL under the current system, the Office of Inspector General (OIG) is urging the Federal Motor Carrier Safety Administration (FMCSA) to shore up the CDL program. OIG recently asked the FMCSA to “at a minimum, require all CDL applicants to demonstrate that they are either a U.S. citizen, a permanent legal resident, or otherwise legally present in the United States.” Currently, only drivers seeking a hazmat CDL are required to provide proof of citizenship or lawful permanent residence. In addition to demonstrating U.S. citizenship or legal residence, all applicants should submit to fingerprinting and have their Social Security numbers verified, according to OIG. Having such safeguards may make sense but they may not necessarily ward off determined terrorists. The Department of Homeland Security, for example, recently found 29 truck drivers with possible ties to terrorist organizations—all 29 drivers were licensed to carry hazardous materials. Still, the OIG proposal is not up for review until May 2005. In related news, the FMCSA recently announced that trucking companies hauling certain highly hazardous materials (radioactive materials, explosives, toxic inhalant materials, and compressed or refrigerated liquid methane or natural gas) will be required to have a special permit beginning January 1, 2005. The FMCSA predicts that the U.S. economy will save an estimated $3.7 million annually in safety benefits due to fewer accidental releases of these materials.
MORE TOLLS TO COME? Ever since 1956, when the Federal-Aid Highway Act was passed, driving on the interstate system has been largely toll free. That may come to an end, though, as Congress debates whether to give states the authority to levy tolls as a way to reduce traffic congestion and raise funds for transportation programs. That proposal, contained in the Senate’s six-year transportation bill, is being negotiated with the House and has set off a flurry of lobbying. Groups like the AAA and the American Trucking Associations staunchly oppose the bill, while the U.S. Conference of Mayors, environmental organizations, and road-building coalitions support it. If the bill passes, states could raise billions of dollars over the next six years for transportation programs. Money for such programs now mostly comes from the federal gasoline tax. Opponents of the bill say existing highways should not be turned into toll roads, since the roads have already been paid for with fuel taxes. But the Bush Administration says it’s in favor of giving states “a menu of options, including tolling, to manage traffic flow.”
TRUCK DRIVERS WANTED: The increased demand for shipping in the last few months has left many trucking firms scrambling to find drivers. In fact, some firms—small and large alike—are stuck with unused tractors sitting in their yards. “We’re at probably one of the hardest points in our history to recruit drivers,” said a Schneider National spokesman. The shortage, reminiscent of the one in the late ’90s, exists across the country. According to a new survey, more than 93 percent of shippers say they expect capacity to be a concern throughout the year. About 40 percent say they’re paying higher rates to secure capacity. The growing economy is likely the main reason for the increased demand, but other factors are involved. During the last three years, more than 12,000 trucking companies closed due to the sluggish economy. Capacity was tightened further when regulatory changes placed stricter limits on how many hours truck drivers can work. Schneider estimates the new rules caused driver productivity to decline by up to 19 percent. Fleets are doing their best to lure drivers, and some have their sights set on owner-operators, who are generally viewed as highly professional and experienced. Fleet Owner cites several ways companies are trying to attract these independents: (1) Pay for fuel. One company pays for fuel as well as licenses, permits, and insurance. (2) Home time. Other companies guarantee drivers time at home. One carrier has city drivers home every night and linehaul drivers spending no more than one night per week on the road. (3) Offering premium trucks. Another carrier allows drivers to lease trucks with all the “bells and whistles” at low payments. Although expensive, says a spokesman, “we believe if we put (drivers) in a position where they are happy and can make money, the company makes money as well.”
TRAFFIC DEATHS TO INCREASE WORLDWIDE: Traffic accidents are responsible for 1.2 million deaths worldwide, according to the World Health Organization (WHO). That’s equivalent to the entire population of Dallas, Texas. As the world population grows and the number of vehicles on roadways increase, the WHO predicts traffic accidents will kill 2.3 million annually by 2020. The problem is that there’s no international outcry for a cure as there is with diseases like AIDS or malaria, according to the agency. The WHO, however, is trying to draw attention to the matter through education. It wants drivers and pedestrians to know that (1) at least 30 percent of traffic accidents are caused by speeding, (2) any level of alcohol in the blood poses an increased risk for a crash, (3) seat belts reduce the risk of death or serious injury by up to two-thirds, and (4) vehicles using daytime running lights have an accident rate of 10 to 15 percent lower than those that don’t. To reduce traffic accidents, the organization recommends using speed cameras; installing speed bumps and traffic circles to “calm” traffic; enforcing blood-alcohol limits; administering random breath tests; establishing and enforcing seatbelt and child-restraint laws; using “smart” seatbelts with alarms to remind people to buckle up; and including daytime running lights for vehicles.
CARRIER FIGHTS INSURANCE FRAUD AND WINS: Insurance fraud costs Americans $30 billion each year, according to the National Insurance Crime Bureau. An estimated one-third of all bodily injury claims for car accidents are fraudulent. The most common form of fraud is “padding,” when costs are exaggerated. “Costs associated with defending and settling such lawsuits are astronomical,” said one attorney. But in one recent case, a trucking company decided to fight back against a lawsuit, not to settle. In an unusual move, an attorney for Florida’s largest intrastate trucking company, Commercial Carrier Corporation, asked the county circuit court to dismiss a lawsuit on the grounds that the Plaintiff was committing fraud upon the court. The judge agreed and dismissed with prejudice, so the claim cannot be filed again. The incident that initiated the lawsuit occurred almost two years ago when a Commercial Carrier Corporation trailer traveling no more than 5 mph bumped into a parked tractor-trailer. The driver of the parked tractor-trailer claimed he had suffered permanent neck injuries that prevented him from working. Court testimony demonstrated that the Plaintiff had actually incurred neck injuries in a 1984 accident, and that he had received a settlement in that case for an undisclosed amount. Commercial Carrier Corporation’s attorney said that the Plaintiff “had no scratches, no injuries, and didn’t seek hospital attention. In fact, he worked throughout the rest of that evening…. It appears he was trying to collect twice for a previous injury to his neck.”
HONORING TRUCK DRIVERS: August 22-28 has been designated as National Truck Driver Appreciation Week. Motor carriers, state trucking associations, and trucking industry manufacturers and suppliers will honor the country’s 3 million plus professional truck drivers who work hard and play a vital role in supporting our nation’s economy. “Pats on the back” may come in the form of safety awards, bonuses, paid days off, and company picnics. Some truck stops will offer free coffee or windshield cleaning. Most of the country’s governors will participate by issuing proclamations that August 22-28 is Truck Driver Appreciation Week in their state. Lane Kidd, president of the Arkansas Trucking Associations, said that drivers are the “cog in the wheel, the key component of the industry.” Think about it, he said. “Our standard of life we all enjoy is dependent on how the trucking industry delivers the goods, and it all depends on the drivers. Trucking is one of the few industries that can’t be shipped off-shore.”
SAFETY ON THE CELL PHONE: Millions of workers and consumers use their cellular phones on a daily basis. However, probably only a few are aware of the dangers of using cell phones near areas with explosive materials. Cell phones, which are really radio transmitters, can ignite combustible gases, according to the Mine Safety and Health Administration. Cell phones can interfere with blasting operations at heavy construction areas and roadwork sites that use radio remote-control devices to set off explosives. In addition, accidents have occurred involving cell phones at fueling stations and offshore drilling rigs. To keep cell phone users safe, as well as those working in construction and fueling stations, experts recommend that cell phone users: (1) Review their cell phone handbooks. The instruction books generally include warnings regarding cell phones at construction sites, gas stations, fuel storage sites, and chemical factories. (2) Refrain from using their cell phones near construction sites. Cell phone users should turn off their phones before they enter a construction site or any area that has a potentially explosive atmosphere, including fueling areas at gas stations, below deck on boats, and at chemical transfer and storage facilities. (3) Do not store flammable materials, such as gasoline, in the same compartment containing a cell phone.
Failure seldom stops you; what stops you is the fear of failure.—Jack Lemmon, actor