ATRI, FMCSA, ELD. Spelling out the CSA issues of the shipping industry

Peter Tulisaari

By Peter Tulisaari Director of Business Development at King Solutions

logistics compliance instruments

Businesses in every industry have their own unique mountains to climb, but two of the key issues that transcend industry lines are compliance and safety. Small businesses will spend more than $83,000 in their first year to maintain compliance, and larger companies can spend in excess of $5 million a year to keep up with ever-changing regulations. The only other option is to risk being in violation of industry regulations, which can cost businesses even more money (not to mention legal headaches).

Safety concerns are no less burdensome. Businesses who want to keep their employees safe (we can’t imagine there are many who don’t) need to spend the necessary time and resources.

The top compliance and safety issues concerning the logistics industry
In the latest “Critical Issues in the Trucking Industry” survey by the American Transportation Research Institute (ATRI), four out of the top 10 issues confronting trucking companies were related to regulatory compliance. “Compliance, safety, accountability (CSA)” was ranked as the 6th most important issue for trucking companies. Ranking at #7 was the “cumulative economic impacts of trucking regulations on the industry,” and ranking at #2 and #3, respectively, were the new “Electronic Logging Device (ELD) mandates” and “Hours-of-Service (HOS)” regulations.

How are businesses confronting these issues?
While we are well into the tenure of the new ELD mandates — you can read more about them here — carrier companies are still left to confront more stringent HOS regulations that force drivers to “take at least eight consecutive hours in the sleeper berth, plus a

separate two hours either in the sleeper berth, off duty, or any combination of the two,” according to the ATRI report. Shippers are asking for more flexibility in the rules to allow drivers to rest when tired and adjust their schedules to avoid congestion bottlenecks and peak traffic times.

When it comes to tackling compliance and driver safety issues, companies are now allowed to request reviews of potentially non-preventable crashes (as of 6/1/17) from the Federal Motor Carrier Safety Administration (FMCSA) through its Crash Accountability Pilot Program. Using these lists, companies may be able to (in the future) remove non-preventable crashes from the Crash BASIC calculation the FMCSA uses to measure safety performance.

For shippers, carrier selection is becoming more important
These rules mostly have a direct affect on carriers. But shippers, along with the logistics management companies they partner with, are also feeling the added pressure of new safety and compliance regulations. In order to avoid delayed shipments due to drivers being forced off the road by tightening regulations, stringent carrier screening and selection must become a top priority.

At King Solutions, we prioritize safety and compliance and hold ourselves accountable in everything we do. Our carrier screening and selection process is rigorous, and we only partner with the most reliable and well-established carriers to haul freight for our clients. We understand that the regulations affecting carriers will ultimately trickle down to the businesses they serve, and we take steps to ensure that our carrier partners are fully compliant with industry regulations.

When it comes to safety, our company is also ahead of the curve. This year, we were the proud recipients of a Meritorious Achievement Award at The Governor’s Safety Awards in Minnesota, and we are dedicated to our continuous improvements in health and safety initiatives.

Ready to work with a partner who takes safety and compliance seriously? Contact King Solutions Today.