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The Roemer Report On-Line, Mar, 2002
FATAL TRUCK CRASHES AT ALL-TIME LOW: Recently released statistics show that the year 2000 experienced the lowest rate of fatal truck accidents since the government began keeping the statistics in 1975. The drop in fatal accidents continues a four-year trend, according to the National Highway Traffic Safety Administration. Trucks weighing more than 10,000 pounds were involved in 4,522 crashes in 2000, which translates to an estimated 2.2 fatal crashes per 100 million miles traveled. Accidents involving trucks killed 5,211 people in 2000, compared with 5,380 the previous year. Large trucks also were on the road more in 2000, racking up 205.8 billion miles, compared to 202.7 billion miles in 1999. Further evidence of enhanced truck safety: Truckers are the least likely of drivers to be cited for alcohol use in fatal accidents. Truck drivers involved in fatal crashes were intoxicated in only 1 percent of cases, versus 19 percent for passenger vehicles, 20 percent for light trucks, and 27 percent for motorcycles. Truck drivers were also less likely to have had a license suspension or revocation. However, nearly 30 percent of truckers involved in fatal accidents had one or more speeding citations, compared to 20 percent for passenger vehicles.
CHECKS ON HAZMAT DRIVERS REQUIRED: A new rule that requires background checks on all hazmat drivers will likely take effect next month. The Patriot Act, signed by President Bush in October, requires in part that anyone applying for a CDL with a hazardous material endorsement must undergo a background check, which includes a review of international and U.S. criminal records, a work status report from the Immigration and Naturalization Service, and a fingerprint search using the FBI's fingerprint database. "Between the issuance of new licenses and renewals, we estimate that, on average, close to 1 million background checks and security determinations will be required each year," said Joseph M. Clapp of the Federal Motor Carrier Safety Administration. The most likely scenario, said Clapp, is that applicants would be fingerprinted, the prints would be sent to the Department of Justice for a background check, and the Department of Transportation would then notify the states of any individuals posing a security risk. Using fingerprints is a foolproof way of identifying individuals, says an FBI spokesman, but currently there is a backlog of several months for checking prints. "If you have to wait three weeks, it's worthless," concedes Michael P. Jackson. But the Deputy Transportation Secretary says his department is currently "looking at how technology can strip down and make more effective and timely the process for clear and solid background checks."
SETTING THE SAFETY RECORD STRAIGHT: The Federal Motor Carrier Safety Administration (FMCSA) just made it easier for motor carriers to challenge their safety records and expunge nonpreventable accidents from the record. Now, during a compliance review, trucking companies can provide evidence-in the form of police and insurance company reports-that a crash could not be prevented and therefore should not be counted against them. Previously, carriers had to appeal to FMCSA for a correction and safety rating change only after the compliance review had been completed and the company received an adverse rating. The frequency of accidents is one of seven factors considered when FMCSA assigns a safety rating. If there is any doubt about whether the truck driver could have prevented the accident, administrators will label it preventable. Examples of nonpreventable accidents include a truck being rear-ended, a truck hit while legally parked, and another vehicle running a red light. The new policy makes the appeal process easier and decreases the chances that inaccurate ratings and data will go public. Shippers may require carriers to maintain satisfactory ratings, and insurance carriers may consider safety ratings and SafeStat rankings when determining coverage and pricing. SafeStat-a database that includes reviews on accidents, drivers, vehicles, and safety management-is FMCSA's way of identifying high-risk carriers. The new policy will allow carriers to improve their rating, but will probably make a difference only when the rating is borderline. An FMCSA spokesman said the policy may help smaller carriers in particular, since changing only one accident to nonpreventable could substantially boost the carrier's accident profile.
RIGOROUS TRAINING BOOSTS SAFETY: When a motor
carrier runs such a rigorous training program that half its trainees don't
make it, you know the drivers who do pass are the cream of the crop. And that's
precisely the rationale behind North American Van Lines (NAVL) of Fort Wayne,
Indiana. The carrier demands the best and gets it. Here's more of the fleet's
philosophy toward training: (1) It's cheaper to retrain an existing driver
than to fire him and hire a new one. A new hire can cost up to $7,000. (2)
Classroom training is a poor substitute for on-the-road driving. NAVL trainees
get four days of intensive, hands-on experience. (3) Experienced drivers benefit
more from finishing programs than novice drivers. Experienced drivers who
underwent training had 35 percent fewer accidents, with the average cost per
accident dropping 50 percent. In addition, the training resulted in a 4.7
percent savings in fuel in one year. That turned out to be a $3 million savings
after an $80,000 investment. (4) Simulators can expose bad habits. NAVL discovered
that rather than speeding, dangerous drivers more often tended to drive too
fast for conditions. They also tended to stand on the brakes, crank the wheel
in an emergency, and shift lanes without checking mirrors. (5) Safety training
is good advertising. "We have to convince CEOs of the value of safety
training," says NAVL's John McFann. "At a 95 percent operating ratio,
an accident that costs $10,000 will require that the fleet haul $200,000 in
freight business to break even."
SECURITY AT THE BORDER: While the Bush administration is trying to tighten security along the Canadian border, Canada is pursuing a plan to allow more than 7,000 trucks each day to enter the United States uninspected, according to The New York Times. The plan would allow certain companies that regularly transport freight across the border to undergo security prescreening. The U.S. Office of Homeland Security supports the plan, contending that it would eliminate time-consuming inspection of low-risk traffic so that border officials could focus their energies on high-risk cargo. However, Robert C. Bonner, commissioner of the United States Customs Service, opposes the plan, calling it an open invitation to terrorists. "We're looking at increased security against terrorists at the border," Bonner said. "I don't think the Canadians are looking at it the same way." Canada is already phasing in the program for American truckers, allowing them to enter Canada without inspection if they work for major, prescreened companies like General Motors or Procter & Gamble. The companies and drivers undergo a security inspection before they receive their border passes, and they are audited every 30 days. Of the 6.5 million commercial trucks entering the United States from Canada each year, about 2.6 million fit that description, say Canadians and Americans. Nevertheless, Bonner worries that a weapon of mass destruction could still be concealed in a prescreened truck. "There is at least a certain number of Al Qaeda terrorists in Canada," said Bonner. "One of them could get a job at one of these plants, and then you may have nuclear material inserted in that truck."
INSURANCE RATES ESCALATING: On average, trucking companies paid 32 percent more for insurance in 2001 than the previous year and can expect to pay even more in the future, according to a recent survey. "This trend is not expected to get better anytime soon and has only gotten worse since the September 11 terrorist attacks," according to the American Trucking Associations report. The average increase in insurance from 1999 to 2000 was 17 percent. While there was no major difference in premium increases by region, some segments of trucking were harder hit than others. For example, auto haulers faced a 52 percent increase, truckload carriers saw a 35 percent increase, less-than-truckload carriers a 27 percent increase, private fleets a 25 percent increase, and refrigerated carriers an 18 percent increase. The survey estimated an average cost of $4,500 per tractor for primary insurance. Large carriers experienced a bigger hike than smaller carriers; those with revenue of more than $30 million had an average 48 percent increase in insurance costs, versus a 30 percent increase for smaller motor carriers. According to the survey, those who had a habit of switching insurance companies paid a price. Motor carriers that changed insurance companies four times in the last decade experienced a 53 percent increase in premiums. Those who stayed with the same insurer for the last 10 years had their rates go up by 19 percent last year.
LISTENING OUTSIDE THE BOX: Where do you turn when you need advice? If you're a leader, you turn to your trusted advisors. If you're a great leader, you turn to trusted advisors and those you respect but rarely agree with. When Johnson & Johnson learned that someone had tampered with its Tylenol bottles, leading to the deaths of several people, its CEO, Jim Burke, didn't take the standard route. He asked for advice from people within Johnson & Johnson, but he also turned to people outside the organization. He allowed debate to rage and listened closely to what he heard. He went against the advice of Johnson & Johnson's public relations director and appeared on a national news show to tell Americans how the company was handling the crisis. The move was successful and helped the company re-earn the trust of many American consumers. History teaches us that great leaders know that sometimes they must listen to the dissenters if they want to move forward. President Lincoln's first cabinet included men from the ranks of the opposition as well as chief rivals in his own party. He also turned to soldiers, freed slaves, and common citizens when determining policy. Lincoln is perhaps one of the greatest examples of how leaders can learn from those who oppose them, if only given the chance.
Statistically, 100 percent of the shots you don't take,
don't go in.
-Wayne Gretzky, Hockey player