1 FMCSA SAFETY REGULATIONS: SafeStat – CSA 2010 FMCSA Rulemaking updates Delta Nu Alpha – July 25, 2008 Henry E. Seaton, Esq., -and- Richard “Rick” Gobbell

2 CORPORATE SPONSORS Air & Expedited Motor Carrier Association Apex Capital LP Champagne Logistics Greatwide Truckload Management Kings Express Landstar RMCS USA Transportation Services, International

3 About DNA Fraternity of transportation professionals Open to all with interest in education Interdisciplinary – shippers, carriers, third party logisticians and students Traditional chapter format – Milwaukee, Chicago, Rockford, Nashville, Bowling Green, Grand Rapids, Louisville, Le High Valley Student chapters at Western IL University Scholarship program

4 Syllabus of Future Webinars Contains Chronic and Acute Industry Problems Format is issue presentation followed by open question and answer. Diverse opinions are encouraged. Goal is to assess issues, impart information and better prepare listeners as knowledgeable professionals in any industry which too frequently ignores day-to-day problems of contracts, claims and operations in favor of “supply chain management.” CCPAC accreditation of 3 courses for cargo claims specialists.

5 Upcoming Webinar Topics 08/19/08 The Scourge of Double Brokering 09/16/08 Cargo Claim Mitigation, Adjustment and Salvage Issues 10/21/08INCOTERMS – The Language of the Global Economy 11/18/08 Supply Chain Security Issues – Alphabet Soup and New Regulations All of the Webinars have been approved for Certified Claims Professional Accreditation Council (CCPAC) Credit (1.5 CEUs) For more information and to register, go to

6 DOT or FMCSA? Who is subject to the Federal Motor Carrier Safety Regulations? Any motor carrier that operates: 1.Any vehicle or combination of vehicles greater than 10,000 lbs Gross Vehicle Weight Rating (Driver Qualification, Medicals, Logs etc) 2.Any vehicle or combination vehicles with a gross vehicle weight rating greater than 26,000 lbs is also subject to Drug & Alcohol Testing & Commercial Driver’s License regulations, in addition to Driver Qualification, Medicals, Logs etc. 3. Any vehicle transporting a hazardous materials requiring the vehicle to be placarded (DQ, Medicals, Logs, CDL, D & A) 4.FMCSA Registration, evidence of insurance and agents for process is required for any for-hire motor vehicle conducting interstate commerce regardless of size (SafetyLu Correction Act 2008).

7 DOT-FMCSA Compliance Review-Audits A compliance review is currently FMCSA only tool to assess a motor carrier’s compliance with the Federal Motor Carrier Safety Regulations 1.There are currently more than 600,000 motor carriers in the US 2.There 40,000 to 50,000 new carriers that startup a trucking business every year 3. FMCSA & State Agencies conduct about 14,000 CR every year

8 DOT Compliance Review-Audits So the chances of a motor carrier ever being audited by DOT is very slim. It would take DOT about 27 years to audit all the motor carriers in its system with its current staff if no new carriers begin operations

9 DOT Compliance Review FMCSA currently prioritize motor carriers for compliance reviews for the following reasons. 1.A driver files a complaint 3. Or a carrier’s SafeStat Scores 2. The carrier is involved in a major crash

10 SAFESTAT is DOT’s current data collection analysis system used to prioritize what is referred to as “Possible At Risk Motor Carriers” DOT Collects this Data from: State Agencies Local Agencies Its own Federal Staff

11 FMCSA Collects Data From: Roadside Driver/Vehicle Inspections Federal, State and Local Moving Violations Traffic stops State and Local Crash Reports State and Local Motor Carriers MCS-150s FMCSA Staff New Entrant Audits,Compliance Reviews & Enforcement Actions

12 FMCSA’s SafeStat Involves analytically assessing a motor carrier in four Safety Evaluation Areas (SEAs): –Accident SEA –Driver SEA –Vehicle SEA –Safety Management SEA Each SEA is based on two or more indicators supported by different data sources

13 The SafeStat Score The SafeStat score only applies to carriers with safety deficiencies. Only carriers that have deficient SEA values of 75 and higher (the worst 25th percentile) in two or more of the four SEAs receive a SafeStat Score. For calculations and website details, see Appendix A.

14 Categories of carriers deficient in one SEA (SEA Value of 75 or higher) SafeStat Categories for Carriers with One SEA Value Single-SEA SafeStat Categories

15 Example of SafeStat Results SafeStat Score: Overall Rank: 19 State Rank:3 Previous Status:Warning letter Current Status: Category A ( At Risk) CR Recommended Name: Rollemover Express DOT # Physical AddressMailing AddressPower units: 35 Launch Pad Road P.O... BOX 1234 Hazmat Carrier: yes Yourtown, Ourstate 12345Yourtown, Ourstate Passenger Carrier: No

16 DOT Compliance Review Category A & B SafeStat Carriers are priority motor carriers that will be selected for an on site Compliance Review - Audit DOT Policy

17 DOT Compliance Review - Audit Is where DOT determines: 1.What a motor carrier’s Safety Rating will be: -Satisfactory -Conditional -Un-Satisfactory 2.If a carrier will have to pay a fine as a result of the violations discovered. 3. If a carrier will be able to continue to do business

18 Comprehensive Safety Analysis CSA 2010 FMCSA’s development and deployment of a new operational model to use FMCSA resources to identify drivers and motor carriers that pose safety problems and to intervene to address those problems as soon as they become apparent to the Agency.

19 CSA 2010 It is a current FMCSA high priority safety initiative – It is much a much more in-depth analysis of the data currently captured by DOT on motor carrier performance

20 CSA 2010 vs. Safestat SafeStat’s only intervention is based on: –Safety fitness determination tied to compliance review. –It is very labor intensive. –Result: It only assess a small fraction of industry. –Focus is on carriers.

21 CSA 2010 vs. Safestat CSA 2010 Operational Model --- –Target unsafe behavior. –Safety fitness tied to data; not CR or acute/critical violations. –Broad array of progressive interventions. –Focus is on carriers and drivers. –Leverage new technology, training, and information.

22 CSA 2010 Description Four major elements --- –Measurement –Interventions –Safety Fitness Determination –COMPASS

23 CSA 2010 Measurement Today’s Model - SafeStat Four Safety Evaluation Areas (SEAs) Only roadside out-of- service & moving violations SafeStat – results support prioritization of compliance reviews No risk-based violation weightings Carriers CSA 2010 Seven Safety Behavioral Areas (BASICs) All roadside safety violations Results determine --- –When to intervene –When proposed notice of Unfit Risk-based violation weightings Carriers and Drivers

24 Behavioral Analysis & Safety Improvement Categories BASICs for Carriers and Drivers Behaviors That Lead To Crashes 1.Unsafe Driving 2.Fatigued Driving 3.Driver Fitness 4.Drugs and Alcohol 5.Vehicle Maintenance 6.Cargo Securement 7.Crash Experience

25 CSA 2010 Interventions Today’s Model Limited to compliance review (CR); one size fits all CR is resource intense CR assesses compliance through rigid set of acute/critical regulations Generally, audit approach CR used to determine whether enforcement is needed CSA 2010 Broad array of progressive interventions More interventions; many less resource intense Interventions target unsafe behavior through weighted BASICs Investigative approach; root cause and educational element Goal: Change unsafe behavior early, and initiate earlier enforcement

26 CSA 2010 Interventions - Carrier Tier 1 – Informative –Warning Letter –Focused Roadside Inspection Tier 2 – Interactive –Off-Site Investigation –Cooperative Safety Plan –Notice of Violation –Focused On-Site Investigation –Comprehensive On-Site Investigation Tier 3 – Prescriptive –Notice of Claim –Consent Agreement –Unfit Suspension (Safety Fitness Determination) Increasing Severity

27 CSA 2010 Interventions - Carrier Intervention process triggered by: –One or more deficient BASICs, –High crash indicator, or –Complaints or fatal crash. Intervention selection influenced by: –Safety performance, –HM or passenger carrier, and –Intervention history.

28 CSA 2010 Safety Fitness Determination (SFD) Today’s Model SFD tied to compliance review Satisfactory, Conditional, or Unsatisfactory SFD effective until next CR SFD based on acute/critical violations CSA 2010 SFD tied to performance data; not necessarily CR Continue Operation, Marginal, or Unfit SFD assigned to all carriers with sufficient data; updated regularly SFD based on performance data

29 CSA 2010 Safety Fitness Determination - Carrier Status --- CSA 2010 will require: –A major rulemaking –Revise Part 385, Safety Fitness Procedures –NPRM publication - Targeting spring/summer 2008 Look for rulemaking later this fall

30 CSA 2010 Proposed Operational Model

31 CSA 2010 Operational Model Test Where --- –Approximately 40 investigators state and federal –Four states – one in each FMCSA Service Center Colorado Georgia Missouri New Jersey –Outreach --- September/October

32 CSA 2010 Outreach to Partners and Stakeholders Six Listening Sessions --- Sept/Oct-04 Listening Session – Nov-06 –Washington, DC –Ninety-two persons Next Listening Session Targeting --- –Four breakout sessions – 611 responses –Early Nov-07 –St. Louis, MO –Federal Register notice –Three topics Demonstrate Measurement Systems Further describe Operational Model Test Safety Fitness Determination Methodology

33 Industry Concerns with CSA 2010 Small carrier can become “marginal” based on limited and inaccurate data reported by states. All drivers will be tagged for every citation and their driving histories will effect carrier rating. Vicarious liability concerns plus publication of new system will throw carriers, shippers and brokers into purgatory.

34 New Entrant Rulemaking Docket No. FMCSA December 21, 2006 Will be much more in-depth than current procedures Will have 11 violations that will automatically result in a failing grade Based on current analysis up to 40% of new entrants will fail the audit

35 Minimum Training Requirements for Entry Level Commercial Motor Vehicle Drivers Docket No. FMCSA December 17, 2007 Requirements Accreditation Requirements for Entry-Level Trainees – Institutional and motor carrier training programs must be accredited Hours-Based Training Requirements – 120 hours of training (at least 76 classroom and 44 BTW) Driver Skill Instructors Must have at Least Two Years of CMV Driving Experience New-Entrant CDL Licensing Process driver training certificates must be provided to the State Licensing Agency before a CDL License will be issued. 3 year implementation period from date of final rule

36 Hours of Service Rule July 24, 2007 Court Ruling FMCSA Published an Interim Final Rule Expect the final rule before the end of the year. 11 hour rule 34 hour reset Split Sleeper Berth U. S.Department of Energy Agricultural Organizations and other have requested exemptions to existing rules

37 On-Board Hours of Service Recording Devices FMCSA Revised January 7, 2007 Requiring CMV to have install tamper proof electronic on Board Hours Of Service recording devices Two year effective date from date of final rule Expect rule by the end of the year, possibly corresponding to the Hours of Service Rule

38 Hazardous Materials Awareness, Familiarization, Function Specific, Security and In-Depth Security Training 49 CFR (a)(1-5) Applies to Brokers, Forwarding Agents, Freight Forwarders and Warehouses PHSMA Guide November 2005 Applies to Motor Carriers drivers that only transport Consumer Commodity - ORM-D (hair spray, small cans of spray paint, cigarette lighters and Baskin Robins whip cream) Verbal Interpretation April 2008 Waiting for written confirmation

39 Questions