Changing Times

A note from our Safety Director, Len Dunman
Many veterans in the trucking industry have said that the recession of 2008-2009 has been the most difficult time to truck in memory. It seems worse than no fuel in 1975, five dollar a gallon fuel in 2008, and deregulation in 1980. Despite lower fuel costs, both freight volume and freight rates have declined to the point that many carriers and owner-operators have given up. More will no doubt follow before the economy finally recovers. No matter how brutal, over the long term, this will be viewed as a temporary situation, a part of the business cycle in the trucking industry. However, there are changes coming in 2010 from both the Federal Motor Carrier Safety Administration (FMCSA) and the Environmental Protection Agency (EPA) that will have fundamental, long-term effects on trucking. Prudent carriers and drivers need to be aware of these and begin planning accordingly. The following are brief overviews of where these agencies are headed.
 
CSA 2010 (FMCSA). If you haven't heard of CSA 2010, you soon will. This program is scheduled to completely revamp the current SAFER ratings on carriers. All the SEAs will be scrapped (vehicle, driver, management, accident) and carriers will be rated on seven BASICs. These are: 1) Unsafe driving (includes moving violations); 2) Fatigued driving (includes hours of service); 3) Driver fitness (CDL, medical); 4) Controlled substances/alcohol; 5) Vehicle maintenance/condition; 6) Improper loading (Securement, overweight, hazmat); 7) Crashes. This data will primarily be collected through roadside inspections. Unlike the current system, where a motor carrier's safety rating is determined by FMCSA audit, the new system will determine the motor carrier's safety rating primarily by performance. Audits will still be used, but they are more likely to target specific deficiencies identified by roadside inspections. Records "roll off" at 24 months.
 
Four states (Georgia, Missouri, New Jersey, Colorado) are involved in a 30-month test of the program which will end June 10, 2009. Minnesota is scheduled to begin testing at that point. The entire program is scheduled to be operational in June, 2010. What is important to understand is not what it is, but rather how it will be enforced. Many recent studies from a variety of sources have led to the same conclusion: Most accidents are caused by driver-related factors (error, inattention, fatigue,etc). Therefore, it is expected that the number of Level 3 (driver-only) inspections will substantially increase both at scales and along the roadside. As before, out of service (OOS) items checked will count against the carrier's safety record (whether the driver is actually shut down or not). If, in the officer's judgement, the driver is fatigued, he or she will be placed out of service for ten hours and that will count against the carrier's safety record, regardless of how long the driver has actually been on duty or what his log book says. If a driver is pulled over for speeding, following too closely, travelling in a restricted lane, or any other moving violation, it will count against the carrier's safety record, whether or not a ticket is actually issued and whether or not such a ticket is beaten in court. That will have a major impact on how carriers recruit and retain drivers. Frankly, no carrier will be able to keep a driver who can't consistantly go down the road without getting written up. Drivers will need to redouble their efforts to drive at or below the speed limit at all times, to secure properly, and to log absolutely legal. CSA 2010 is designed to ensure that such behavior occurs. After CSA 2010 becomes operational, it would not be too much of a stretch to think that electronic logs would be far behind. Most drivers will adjust to CSA 2010 with no problem. Those who have problems now need to seriously consider adjusting their driving behavior prior to June 2010. Or seriously consider a new career. That will be the reality of CSA 2010.
 
SmartWay Transport Partnership (EPA). This is a voluntary emissions reduction program whereby member carriers (motor and rail) submit emissions, fuel useage and emission control/equipment data to the EPA on an annual basis and are scored in one of four ranges. Barge and air carriers will soon be included, as well. Shippers also are measured in regard to their carbon footprint, which includes the SmartWay scores of their freight carriers. The scores involve a complex set of alogrithims based upon a carrier's performance and a physical inventory of the carrier's equipment, and what aerodynamic and fuel saving devices are on that equipment. Fuel usage and mileage reported for fuel tax purposes is also considered. Mercer was admitted as a Partner in 2008, and currently has a top score in the program and it appears that the score will hold up when the 2008 numbers are reported in June, 2009. However, a new model is being developed which will tighten the standards for 2010 and beyond. While only the draft copy has been available for review, it appears as though the standards will be tougher for 2010 and beyond. At some point, carriers who cannot score well in SmartWay will not be considered by SmartWay shippers. Today, there are a number of shippers who will not consider carriers unless they are in the SmartWay program. This trend will increase dramatically in the near future because shippers will not be able to maintain their SmartWay scores and reduce their carbon footprint unless their carriers do.
 
Similar emission reduction programs throughout the US are having a growing impact on trucking. The California Air Resources Board (CARB) enforces a five minute idle law in California. Tractor age is becoming a factor in one's ability to operate in California. EPA 2010 emission regulations will drastically change the type of engines available and how they must be maintained. States and local communities are rushing to implement no-idle laws in their jurisdictions with hefty fines for non-compliance.It appears as though South Carolina will soon have a ten minute idle law. New Jersey routinely conducts opacity (smoke) tests on trucks. Several states are expressing strong interest in the CARB program and enforcement model. Interestingly, the CARB alogrithims are similar to the EPA alogrithims.
 
For motor carriers, these developments will have a profound impact on what type of equipment they operate, be it company-owned or leased from owner operators. Mechanical engines will be a thing of the past. It may be possible for carriers to keep the ones they have, providing that they are not rebuilt when they expire, but they sure can't take any more. Age of equipment, even with electronic engines, will become a greater issue. Non-aerodynamic configurations (square nose, Texas bumpers, etc) will be undesirable because they will not help a carrier's SmartWay score. Within the next year, it will be difficult for a motor carrier not to require APU's on all tractors. Electronic engines will have to be reflashed to the most current manufacturer specs and some observers think the US will eventually follow the Canadian lead in governing all units to a set speed limit. Drivers who speed  will not be utilized. Not only do speeders destroy carrier safety scores on CSA 2010, but they also skew fuel usage and fuel economy scores on SmartWay. The service standard will not be merely who can get it there the fastest, but also who can get it there the safest and cleanest. Market pressures are rapidly being trumped by these FMCSA and EPA programs.
 
Surviving probably the worst recession since the Great Depression will be a significant feat for any motor carrier and owner operator. The ultimate irony would be to survive the economic hard times but to succumb to the new regulatory realities being implemented in transportation throughout the economic recovery. Those who understand these and embrace them will survive and prosper. Those who don't, or won't, will be history.
 
 
Len Dunman
Safety Director
Tele (502) 625-3161
Fax (502) 625-3158
1-800-626-5375
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