1. NC League of Transportation and Logistics So You Want to Hire a Motor Carrier?
Charlotte, NC
March 26, 2015
Presented by: Rob Moseley
2 West Washington Street, Suite 1100 | Greenville, SC 29601
T: | E:

3. Current Environment
Suit against the driver

4. Current Environment
Suit Against the Company

5. Current Environment
Suit against Shipper/Broker

6. Lawyer Ad in Maxim Magazine

7. Broker/Shipper Liability
Theories of Liability
Control
Dangerous Activities
Negligent Selection

8. Stuff used to state a claim
You should not have hired a carrier who:
Unrated
New Carrier
Conditional Rating
Had electronic devices that could be read while moving
Alert(s)
Serious violations during Comprehensive Review
Insufficient Driver hiring criteria
Didn’t use PSP

9. State Tort Law Is a Hodge Podge
The Most Famous Brand From Each State In The US

11. So the stakes are high, what do we do?
49 CFR 385 Safety Ratings
Based on a Compliance Review
CSA used to determine priority for enforcement
Ratings
Satisfactory
Unsatisfactory
Unrated
Conditional
Standard should be
Licensed
Insured

12. Conditional- It’s the new Unsat
Scores negative
More inspections
Spiraling effect
Customers drop
Insurers cancel
Can’t get rerated
Competitors improve
Game Over

13. CSA/SMS Roadside Data 7 Basics Unsafe Driving Hours of Service Crash
Driver Fitness
Drug and Alcohol
HazMat

14. CSA Framework Not safety rating Internal tool for resource management
Abandonment of statutory and regulatory mandate

15. Disclaimer–not Safety Fitness Determination
*USE OF SMS DATA/INFORMATION
The data in the Safety Measurement System (SMS) is performance data used by the Agency and Enforcement Community. A symbol, based on that data, indicates that FMCSA may prioritize a motor carrier for further monitoring.
The symbol is not intended to imply any federal safety rating of the carrier pursuant to 49 USC Readers should not draw conclusions about a carrier's overall safety condition simply based on the data displayed in this system. Unless a motor carrier in the SMS has received an UNSATISFACTORY safety rating pursuant to 49 CFR Part 385, or has otherwise been ordered to discontinue operations by the FMCSA, it is authorized to operate on the nation's roadways.
Motor carrier safety ratings are available at and motor carrier licensing and insurance status are available at

16. CSA Changes Added Fines to Public Data New App
Rearranged Basics in order of relevance
Acknowledging that some stuff irrelevant

17. FMCSA Lineup

18. CSA Analysis Inspector General Report Gov’t Accounting Office (CSA)
Gov’t Accounting Office (DOD Analysis)

19. Use of CSA Safer Bus Mobile App Shipper and Insurer Briefing
Slide 9 Satisfactory does not mean a shipper should ignore other available data – should use CSA to assess safety record
Satisfactory does not mean compliant and safe
Safety Management Cycle

20. CSA Criticisms Enforcement Inconsistencies State law inconsistencies
Reporting Inconsistencies
Data-Q issues
Process data through formulas and algorithms
Relative System
Peer Groups
Compliance v. Safety
Bar too high (are 50% unsafe?)
Specific Basic Issues
a. Accident- no consideration of fault
b. Weighting of violations

21. Why Can’t You Use CSA Changes too often
Not statistically significant to crashes
Have to hire a service to monitor

22. At Risk Carriers If you insist on using CSA Double Secret Probation
Two ways to reach classification
4 alerts Or
1 alert and score of 85 or higher in one of these:
Hours of Service
Crash
Unsafe Driving

23. Where do we go from here? Possible Pre-emption Legislation
HR 4727 currently pending
registered with and authorized by the FMCSA as a Motor Carrier ;
has the minimum insurance coverage; and
does not have an unsatisfactory safety rating.
TIA Developed Anti-Fraud Guidelines
Higher limits of insurance for truckers

24. Safety Management FMCSA’s Safety Management Cycle

25. They are gunning for you

26. Contract Issues 3 Part Process Contract Bill of Lading
Tariffs – don’t leave the terminal without one
Collections
Freight Claims

28. What do you need in your contracts?
Know who wrote it and when
References to regulations and statutes from correct century
Freight Claims
Salvage rights
Indemnity
Choice of law
14101(b) waiver

29. Feeling ok now?

30. Smith Moore Leatherwood LLP
Rob Moseley
Smith Moore Leatherwood LLP
2 West Washington, Suite 1100
Greenville, SC 29601
T: (864)
F: (864)