Vol. 04, No. 47   |   November 23, 2004

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Regulatory Roundup

• Proposed Rulemaking on Air Cargo Security Plan, Trucking Affected
• Do You Haul Haz-Mat? Reporting Tool Unveiled
• Drug and Alcohol Testing Procedures Amended

Real World Recruitment and Retention Basics

• Insurance Broker Provides Insights on Retaining Owner-Operators
  How to Make the Most of Your Agent and Gain Insights Through Third Party Participation

Member Spotlight

• Tango Drivers are Awarded for Service, Safety
• SC Johnson Sues Former Transit Director, Alleges Bribery

Stateside

• I-95 Bridge in Connecticut Officially Re-Opens
• Illinois Truck Speed Limit Stays 55

Truckload Happenings

• Highlight Your Products or Service, Donate to TCA's Drivers Contests
• Change Company Behavior — Increase Safety Performance
  Audio Conference

Proposed Rulemaking on Air Cargo Security Plan, Trucking Affected

In the November 10, Federal Register, the Transportation Security Administration (TSA) issued a Notice of Proposed Rulemaking (NPRM) which proposes to amend current transportation security regulations to enhance and improve the security of air cargo transportation. The NPRM would require the adoption of security measures throughout the air cargo supply chain, and would impose significant barriers to terrorists seeking to use the air cargo transportation system for malicious purposes. This would include: airport operators; aircraft operators; foreign air carriers; and indirect air carriers. Industry comments on this NPRM must be submitted to TSA by January 10, 2005. To secure the air cargo supply chain, in the NPRM the agency is developing and implementing a "layered security system" that uses an optimal combination of information-technology-based solutions. Of particular interest, as it relates to the trucking industry, the NPRM proposes the following:

• To enhance existing requirements for indirect air carriers (i.e. freight forwarders). The NPRM proposes to expand the definition of indirect air carriers (IACs) to include businesses engaged in the indirect transport of cargo on larger commercial aircraft, regardless of whether the operation is conducted with a passenger aircraft or an all-cargo aircraft. In addition, the agency plans to strengthen security requirements for all IACs.
• A key element of the NPRM is to strengthen the application process, and TSA is developing a web-based centralized system for validating and revalidating IACs. Upon implementation of the Internet-based system, TSA proposes to require all businesses to use the system to obtain initial IAC approval and to renew their approval.
• Also, the TSA is proposing to require a comprehensive and recurrent training program for IACs. The agency also proposes to require IACs to designate a Security Coordinator at the corporate level. This individual will be responsible for implementing the IACs security program and will serve as the IACs primary point of contact for communication with TSA.

In addition, there are a number of other initiatives proposed that are directly related to the airline (both foreign and domestic) industry. A key component in the NPRM will be the codification of the "known shipper" program. The agency notes that this program has been substantially strengthened since September 11, 2001 and that additional security measures have been implemented over the past two years. Among the elements to be addressed in the NPRM include: how will TSA enforce compliance; securing the cargo operating environment; accepting cargo from comparable entities; fee authority for threat assessments; and the establishment of an all-cargo operator standard security program.

* You must have Adobe Acrobat Reader installed on your computer in order to read/print the information to be downloaded on this page. If you need more information about obtaining this free software, click here.

Do You Haul Haz-Mat? Reporting Tool Unveiled

The Research and Special Programs Administration (RSPA) issued a notice in the November 17 Federal Register announcing that they are making publicly available a programming tool for companies or individuals to use to electronically file the hazardous materials (HM) incident report form (DOT Form F 5800.1) - in conjunction with the revised HM Incident Report taking effect on January 1, 2005. On December 3, 2003, RSPA had published a final rule under Docket HM-229 that made revisions to the incident reporting requirements. This HM-229 ruling provided persons subject to the incident reporting requirements with the option of submitting incident reports electronically, however at the time of that ruling that option was not available.

As detailed in the November 17 RSPA notice, those persons wishing to submit their incident data in an electronic format have two options. Option #1 is to fill out the form online, at http://hazmat.dot.gov. Option #2 is to submit a data file in an XML format. To facilitate electronic filing, RSPA has developed a programming tool - an XML schema format - and instruction document (also available on the website). The XML schema format establishes a template for data layout to facilitate electronic data submissions by providing for efficient data transmission, validation, and interpretation.

Please note as specified by the agency in the notice for incidents that occur prior to January 1, 2005, everyone must continue to use DOT Form 5800.1. For incidents that occur on or after January 1, 2005, persons must use the new DOT Form 5800.1 (01-2004). Electronic submission of incident data is only authorized for incidents that occur on or after January 1, 2005. A copy of the November 17 Register notice can be downloaded by clicking here for an HTML and here for a PDF*. If you have any questions on this issue, please contact Rich Clemente at (703) 838-8847 or email: rclemente@truckload.org.

* You must have Adobe Acrobat Reader installed on your computer in order to read/print the information to be downloaded on this page. If you need more information about obtaining this free software, click here.

Drug and Alcohol Testing Procedures Amended

The DOT, Office of the Secretary (OST) issued an Interim Final Rule in the November 9, 2004 Federal Register, which amends certain provisions of its drug and alcohol testing procedures to change instructions to laboratories and medical review officers (MROs) with respect to adulterated, substituted, and diluted specimen results. The changes are intended to avoid inconsistency with new specimen validity testing (SVT) requirements established by the U.S. Department of Health and Human Services (DHHS) that became effective on November 1, 2004. The effective date of the IFR is November 9, 2004, and comments to the IFR will be accepted by the agency through December 9, 2004. In the IFR, the agency is taking the following steps:

• " The DOT is removing from Part 40 the requirement that MROs deal with substituted results in a two-tiered fashion (i.e., medical review for some and recollection under direct observation for others). MROs will provide medical review and verification for all laboratory-reported substituted specimen results.
• " The DOT is removing Part 40 references to substituted specimens having creatinine levels greater than or equal to 2mg/dL.
• " Laboratory testing criteria for specific gravity and creatinine concentration of substituted and diluted specimens have been made consistent with the DHHS Mandatory Guidelines. A urine specimen will be considered dilute when the creatinine concentration is greater than or equal to 2 mg/dL, but less than 20 mg/dL and the specific gravity is greater than 1.0010, but less than 1.0030.
• " The DOT is making SVT laboratory instructions consistent with the DHHS Mandatory Guidelines. They are also adopting DHHS instructions that direct laboratories to perform validity tests for oxidizing adulterants and additional validity tests when certain conditions are observed.
• " The DOT is making laboratory results reporting requirements parallel to those in the DHHS Mandatory Guidelines (with the exception of negative-dilute specimen results).
• " Finally, while the DOT will change a number of items in Part 40 to bring consistency between part 40 and the DHHS Mandatory Guidelines regarding SVT, there are several important items that will be different as follows:
  1. the DOT maintains its current position that SVT is authorized but not required. However, laboratories conducting SVT of DOT specimens must do so in accordance with the testing requirements established in the DHHS Mandatory Guidelines;
  2. the DOT will require MRO's to treat laboratory reported negative-dilute results with creatinine levels greater than or equal to 2 mg/dL, but equal to or less than 5 mg/dL as negative-dilutes that require immediate recollections under direct observation; and
  3. to assist MROs with their negative-dilute results responsibilities, DOT is requiring laboratories to provide creatinine and specific gravity numerical values for all specimens they report to the MRO as being negative-dilute.

* You must have Adobe Acrobat Reader installed on your computer in order to read/print the information to be downloaded on this page. If you need more information about obtaining this free software, click here.

Insurance Broker Provides Insights on Retaining Owner-Operators
How to Make Most of Your Agent and Gain Insights Through Third Party Participation

Never before have recruitment and retention been such a hot topic. These days, with freight booming, motor carriers can't talk about it enough. Specialty Risk, Inc. (SRI) is a Kansas City based insurance broker specializing in owner-operators. They have built a loyal book of customers by providing custom designed insurance programs for owner operators contracting to motor carriers. But more importantly, SRI assists motor carriers in areas not normally considered the job of an insurance agent. Why is this important? It is critical that a trucking company partner with a transportation specialist who is not only knowledgeable in owner-operator insurance, but who is also experienced in educating drivers to become better businesspeople. In addition, a third party can give motor carriers pertinent feedback on the reasons drivers leave or stay with their companies. SRI routinely conducts surveys with owner-operators to gain their perspectives on various issues. Read below for some of the wisdom gleaned from these surveys and tips on getting the most our of your relationship with third parties:

Survey Bits

1. When asked, what keeps drivers at a particular company, Roger Gustin, a fleet owner of 12 trucks states, "Trucking companies following through with what they promised is sometimes more important in retaining the services of my fleet than the pay."
   • It is vitally important for motor carriers to give a true picture of what they are able to offer as well as what is expected of the owner-operator. Motor carriers must follow through with what was promised and have someone communicate with their drivers on a weekly basis to ensure that the motor carrier has met the obligations as promised. Motor carriers should not make promises simply to recruit because they likely will not retain the owner-operator on a long-term basis.
2. When asked what do you see as an owner-operator's greatest problem in succeeding in the trucking industry, Dan Mere, an owner-operator of 12 years said, "Not being business minded. They have to consider income versus expenses."
   • The education of drivers, whether it be by the motor carrier or a third party, is essential for the owner-operator's success and actually helps motor carriers retain drivers by making educational seminars available.
3. When asked what makes drivers leave companies, Sam and Joyce Harper, team drivers of 22 years stated, "We left one trucking company to go with another for a small pay increase. With fuel prices and equipment maintenance and the cost of living increase, we are seeing more and more owner-operators get out of the business. We would not recommend to our kids to become owner-operators. The pay just isn't there."
   • It is important for trucking companies to understand they must provide competitive pay rates to retain quality drivers. Increasing pay rates will bring more qualified individuals to the transportation industry as a whole.
4. When asked what attracts drivers to a particular company, Roy Simpson, owner-operator of 2 years, said, "I prefer to haul regional. With a wife and children, I want to be home at night. I'm seeing more guys who can't find regional routes going to companies like UPS and FedEx for more home time and more money."
   • The most recent trend in trucking has pointed toward regional routes. The new generation of drivers tends to be more demanding as far as the time they require at home with their families and the pay they will accept for the hard work that is demanded.

Having a third party involved can be beneficial to motor carriers. For instance, motor carriers don't always know why a driver leaves their company and let's face it, after a driver has left they are not likely to provide helpful information to the motor carrier. The conducting of exit interviews by a third party such as the insurance agent, can provide crucial information for motor carriers. With this information at hand, it doesn't take long to figure out patterns, making it easy for trucking companies to correct retention problems. Not only can your agent be helpful with retention, but they can be helpful with recruitment by providing services such as newsletters, expense journals, business cards, business seminars and access to specialized tax consultants. Any free services such as these can only help the driver be successful. Specialty Risk is currently compiling a book of survey results of over 1000 owner-operators, which will be available to their customers in the near future.

Tango Drivers are Awarded for Service, Safety

TCA member Tango Transport of Shreveport, Louisiana celebrated 60 million miles of safe driving in its 10th Annual Safety Awards ceremonies, Oct. 14 - Nov. 13, 2004, showcasing 138 safe drivers. Tango Transport drivers Herman Trussell and Richard Young were among the drivers honored and received diamond and gold rings for 10 years of safe driving. The two drivers have logged over a million safe driving miles at Tango.

SC Johnson Sues Former Transit Director, Alleges Bribery

The Milwaukee Journal Sentinel reported that TCA member S.C. Johnson & Son claims that it overpaid millions of dollars in shipping costs because its former transportation director and a transportation company allegedly engaged in racketeering and bribery.

The allegations are contained in a lawsuit filed by the manufacturer against its former transportation director, Milton E. Morris. The newspaper reported that suit alleges that Morris received cash during card games with employees of the transportation company and also was bribed with jewelry, a Rolex watch and other valuables.

The lawsuit was not brought against the transportation company, which is identified only as Carrier A.

Morris was responsible for shipping the company's household and personal care products around. For the past several years, he allegedly received thousands of dollars in money, goods and services from the carrier in exchange for favorable treatment, including SC Johnson's paying the carrier inflated shipping rates and paying for services never rendered.

Morris also is accused in the suit of submitting falsified expense reports.

The suit does not specify any amount of money being sought, but it asks for double the amount of damages that Johnson can prove it suffered, plus punitive damages. No court date has been set.

I-95 Bridge in Connecticut Officially Re-Opens

On November 18, 2004 Connecticut officially reopened the bridge that carries traffic on I-95 over Howard Avenue in Bridgeport, CT. The vital bridge was destroyed in a tanker accident in March, 2004. The accident melted the bridge and closed I-95 at exit 26 in Bridgeport in both directions. According to the Connecticut DOT, the repairs were completed under budget and early.

Illinois Truck Speed Limit Stays 55

The governor of Illinois, Rod Blagojevich, was able to prevent an override of his truck speed limit veto on November 16, 2004. The Illinois House failed to gather enough votes to override the veto of a bill that would have let heavy trucks travel 65 mph on rural interstate highways. The override required 71 votes, but failed even though the bill got 81 votes when it passed the House in May.

Highlight Your Products or Service, Donate to TCA's Drivers Contests

TCA wants to give your company exposure at our heavily attended Annual Convention and in our convention materials. Help us to honor the nation's outstanding professional drivers by donating your company's products and/or services today! The benefits of sponsoring TCA's Company Equipment and Independent Contractor of the Year Contests include:

• Your company name on TCA's website.
• Your company name and logo on display during the Annual Banquet
• The opportunity for you to be included in professional photos with the driver winners
• Inclusion in TCA's Annual Banquet program
• Recognition as a sponsor at TCA's Annual Convention, March 6 - 9, 2005 in Las Vegas, NV

Not sure which contest fits your product best? Please contact Aimee Cirucci at 703-838-8838, or go to TCA's website www.truckload.org and click on the "contests" button for a full explanation of what each contest entails. If you are ready to make a commitment and showcase your company at TCA's 2005 Convention in Las Vegas, *click here to download a sponsorship form for the independent contest and here for the company contest and fax them to 703-836-6610.

* You must have Adobe Acrobat Reader installed on your computer in order to read/print the information to be downloaded on this page. If you need more information about obtaining this free software, click here.

Change Company Behavior — Increase Safety Performance
Audio Conference

What does your company's safety effort look like?

Today's challenges are many. Often times we may find ourselves stuck in a reactive rut when it comes to accident prevention. But how do we break the cycle and become truly proactive when it comes to protecting our drivers and the public?

It all boils down to a behavior changing effort that involves everyone in your company, from the President to the dispatcher to the shop mechanic. This audio conference will help you understand why people do what they do and how you can change unsafe behavior throughout your company.

At this audio conference you will:

• Learn 10 result driven steps to successfully bring Safety ownership to the Operational trenches.
• Learn how to train dispatchers and driver managers to identify potential safety problems before they happen.
• Learn practical solutions to increase retention by involving your whole company in the safety process.
• Learn the Five Steps to "cultivate" change in driver safety performance.
• Learn proven fleet management techniques to control your drivers speed

Don't miss this opportunity to build a safer fleet. Click here for more information and to register.

Truckload Carriers Association