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August 2010 Newsletter | Version 1.0 | 888.565.3921  

A Quick Guide to Industry Developments

Trucking Law

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.


Did You Know?

Tim Brady is offering a new, never-before-seen analysis of how trucking regulation has developed since 1880 and the ways this history may Tim Bradyimpact the future. The first of several articles begins here and continues on our blog. Check back in the coming weeks to learn more about how our industry's past is still alive today.

A History of Trucking Regulation
 
The transportation industry is evolving -- and government regulation plays a large role in these changes. Over the next several posts, I will cover the history of trucking regulation and deregulation by the United States Government. As we look at its progression, those of us in the business of trucking will better understand how the government has formulated freight movement in the U.S., and what we can expect in future government regulations.
 
In the late 19th century, the government established the foundation of what would become the Interstate Commerce Commission (ICC), in order to create a level playing field in interstate freight transport. Congress demonstrated this goal through the Interstate Commerce Act (ICA) of 1887, legislation that targeted railroad practices deemed to be unfair, including discrimination against small markets, pools and rebates. The plan was to outlaw such practices and establish a reasonable pricing standard, which required railroads to publish their rates and make them available to the public. To enforce its provisions, the Act also created the Interstate Commerce Commission (ICC), which existed for over 100 years, well into the 1990s. The ICC's main function was to enforce interstate commerce regulations and investigate fraud, deception and discrimination involving the movement of freight and people across the country.

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As always, thanks for reading and make sure you check back next month for some more great Getloaded.com news. In the mean time, keep 'em loaded!
 
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