A Quick Guide to Industry Developments
When it comes to change and new developments,
2010 has been quite a year for the transportation industry.
From CSA 2010 to the Motor Carrier Protection Act of
2010, keeping on top of all the fluctuation and regulations is a time-consuming
-- but crucial -- task. At Getloaded, we want to ensure our members are ready for
whatever changes may come, and our goal is to make your preparations as simple
and streamlined as possible. To help keep you informed, we've put together a
quick guide to the latest industry developments, with an overview, timeframe
and advice on what to you need to know.
CSA 2010
The U.S. Department of Transportation's (DOT)
Federal Motor Carrier Safety Administration (FMCSA) is currently releasing a
new regulation program called Comprehensive Safety Analysis 2010 (CSA 2010). CSA
2010 is intended to improve safety on the country's highways by reducing
accidents involving commercial vehicles. The Safety Management System (SMS)
will replace the current SafeStat system with seven Behavior Analysis Safety Improvement Categories (BASICs).
Timeframe
After an 18-month pilot program in nine
states, CSA 2010 rolls out nationwide on November 30, 2010.
What You Need to Know
On August 16, the FMCSA announced that
carriers can now review their BASIC assessments online. Because the FMCSA will
use this data to determine which drivers are targeted for inspections -- and any
violations are linked to the carrier's BASIC score -- now is the time to ensure
your information is correct. Currently, only carriers and FMCSA enforcement
staff can view the assessments, but in December 2010, the information will be available
to the public -- including customers and insurers.
Controversial aspects of the BASICs are still
under review, including the role of warning tickets and crash accountability in
scores. And though the full rollout is less than three months away, the American
Trucking Association, private companies and other groups continue lobbying the FMCSA
to adjust the SMS or delay publicizing the BASIC assessments until their
scoring concerns are addressed.
Getloaded will continue to monitor
developments, so visit our blog for
further information on the planned roll-out or a full breakdown of the CSA 2010 BASICs.
MEXICAN TARIFFS
In March 2009, after 14 years of disagreement
on cross-border trucking, Mexico put punitive tariffs on 89 goods imported from
the United States. On August 18, 2010, the Mexican government announced they
were adjusting and expanding the tariffs to include a total of 99 products. Because
the effected goods come from 43 American states, knowing who isn't affected by
these tariffs is difficult to determine. In the first year alone, 81 percent of
the originally taxed goods experienced a drop in imports.
Timeframe
The tariffs are effective immediately and tax
99 goods, resulting in additional costs from 5 to 15 percent.
What You Need to Know
Ultimately, no one knows how the long-running
cross-border trucking standoff will play out. President Obama has set a goal of
doubling exports within five years; however, Mexico's tariffs on goods, such as
pork, apples and cheese, will negatively impact this goal. Until the
governments resolve their tariff and export disagreements, transportation
professionals may need to reevaluate their goods and routes to reflect the
current state of cross-border trucking. Getloaded is here to support you by
connecting you to the load and trucks you need. As developments on the tariffs
occur, we will stay on top of the story and keep you informed on our blog.
FREIGHT ACT
The Focusing Resources, Economic Investment,
and Guidance to Help Transportation Act of 2010 or FREIGHT Act is designed to
reform and regulate our national freight transportation system.The FREIGHT Act focuses on improving freight
transportation using multi-modal solutions, reducing transportation-related
fatalities by 10 percent, improving travel times and cutting freight-related
carbon emissions by 40 percent. If passed, the bill would also create:
A National Freight Transportation
Strategic Plan
An Office of Freight Planning and
Development
National Freight Infrastructure
Grants
Timeframe
The bill was introduced into the House and
Senate in late July 2010. If the bill passes, the timing for any voting and
subsequent implementation is currently unknown.
What You Need to Know
A number of organizations support the bill,
including Coalition for America's Gateways and Trade
Corridors (CAGTC), the Environmental Defense Fund (EDF) and
Transportation for America. The American Trucking Associations (ATA), however,
opposes the proposed legislation because they feel the bill does not provide
adequate funding for highway improvements. Considering the bill's focus on
railways and reduced emissions, the ATA's concerns are understandable; however,
the FREIGHT Act seems to be a symptom of Congress' failure to move forward with
a more comprehensive, six-year transportation reauthorization bill that was originally
presented 14 months ago.
In 2009, the House Transportation and
Infrastructure Committee presented a $500 billion proposal addressing the
nation's roads, transit and high-speed rail, but no movement has since occurred.
In an article on Streetsblog.org, Staffer Jim Berard says the House
Transportation Committee Chair Jim Oberstar "feels the authorization bill
should be a comprehensive approach to surface transportation issues." So,
there's a strong chance the FREIGHT Act will be folded into more well-rounded transportation
legislation, instead of moving forward as a stand-alone
bill.
No one can say for sure what will happen and
when the government will update our country's transportation funding and
legislation, but Getloaded will keep you up to date on the issues as
developments occur.
MOTOR CARRIER PROTECTION ACT OF 2010
The reform bill is aimed at curbing broker
fraud by:
Requiring annual registration for
brokers
Unlimited freight charge
liability for anyone who brokers or forwards freight without the necessary bond
or licensure
Tightening the licensure
requirements for brokering freight
Increasing the required broker
bond from $10,000 to $100,000
Timeline
The bill was introduced to the Senate on June
14, 2010. If the bill passes, the timing for any voting and subsequent
implementation is unknown.
What You Need to Know
When the Motor Carrier Protection Act of 2010
was announced, the tenfold bond increase drove headlines, as many people fear
the extra cost will put small brokers out of business. The bill, however, is
more focused on increasing regulation than costs. Last month's newsletter
focused on the nine fundamental changes the legislation aims to implement. We
encourage you to revisit this discussion for further information on how the Act may affect the industry.
Like the FREIGHT Act, the future of this
legislation lies in Congress' hands. We will continue to monitor the bill and
update the Getloaded blog with any progress or developments as they occur.
GOING FORWARD
Staying on top of industry developments doesn't have to be challenging
or confusing. Because the best way to succeed in the future is to prepare for
what may come your way, we are here to help.
The
Getloaded blog and newsletter will continue providing the information you want,
so you don't have to search everywhere for the information you need.