This complex liability landscape underscores the importance for brokers and 3PLs to comprehensively understand their cargo insurance’s scope, particularly its limitations and exclusions. Unpleasant surprises, such as coverage gaps, are not uncommon and can be particularly distressing when they pertain to costly issues like reefer breakdowns and theft.

Reliance Partners emphasizes the significance of diligently reviewing insurance quotes, particularly endorsements. Our Executive Vice President of Sales, Jessie Merritt, warns that endorsements can be a double-edged sword, potentially restricting coverage. It is crucial to discuss with your agent the possibility of purchasing back coverage if restrictive endorsements are present on your policy.

Moreover, the type of insurance coverage chosen is fundamental. While contingent coverage is widely prevalent, it often leads to frustration due to its reliance on the denial of claims by the trucking company’s insurance provider first. Reliance Partners advocates for primary cargo insurance, which not only expedites the reimbursement process for shippers but also offers a broader spectrum of protection.

“Buying real cargo coverage rather than contingent coverage offers a lot more protection,” advises Jessie Merritt. She highlights the importance of understanding the nuances of cargo legal liability and the benefits of Shippers Interest, designed to comprehensively indemnify shippers for a wide range of cargo losses.

In addition to cargo coverage, it’s crucial not to neglect other areas of liability, such as cybersecurity and directors and officers coverage. In the complex and dynamic world of freight brokerage, staying informed and choosing the right insurance products is key. Reliance Partners is dedicated to guiding brokers through this intricate landscape, ensuring a thorough understanding of their coverage options.

For a more in-depth look at the full FreightWaves article here.

Click here to discover more about our services and how Reliance Partners can assist in navigating these challenges.

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Mexico faces over 17,000 reported incidents of cargo theft each year, with many cases going unreported due to the country’s low liability limitation law. Unlike in the United States, where coverage can reach at least $100,000, Mexico’s liability is limited to a meager amount equivalent to 15 days of the minimum daily wage. This translates to only about $1,250 in coverage for an average 40,000-pound trailer. The implications are striking, as it means substantial losses for shippers, especially in cases of total load loss.

To mitigate these risks, shippers must consider implementing All-Risk full value Borderless Coverage provided by Reliance Partners. This coverage ensures that the value of shipments is adequately protected, unlike the limited liability provided by Mexican regulations. Without such coverage, shippers can experience significant financial losses, as the coverage amount does not increase even if the load value does.

Certain regions in Mexico have become notorious hot spots for cargo theft, including non-toll highways in Puebla, Tlaxcala, Jalisco, Veracruz, Guanajuato, Michoacan, Guerrero, and Nuevo Leon. The state of Mexico leads the list of stolen tractor-trailer units, followed by Puebla, Veracruz, Guanajuato, and Jalisco. The most commonly stolen commodities include fuel, auto parts (with tires being the most targeted), electronics, liquor, consumer goods, and metals (with steel being the top choice).

Reliance Partners, in partnership with Schneider, offers the Borderless Coverage program designed specifically for top cross-border motor carriers, logistics service providers, and shippers. This program provides insurance and risk management solutions tailored to the unique challenges of cross-border operations. Schneider and Reliance Partners collaborate to deliver comprehensive cross-border risk management tools, filling the gaps that traditional logistics service providers often struggle to address effectively.

Key offerings from Schneider’s cross-border services include:

1. All Risk Shipper’s Interest Cross-Border Cargo Insurance, inclusive of theft from pickup in Mexico until delivery in the U.S. This primary policy, provided through Reliance Partners, offers low deductibles and ensures coverage aligned with the specific risks faced in Mexico.
2. Real-time shipment tracking across all modes, encompassing in-cab, on-trailer, and in-cargo tracking options. Shippers are encouraged to opt for this service in Mexico to enhance visibility and security.
3. Dedicated capacity solutions that allow shippers to contract Schneider’s equipment and drivers for consistent, long-term routes.
4. Intermodal capacity solutions available throughout Mexico’s manufacturing belt, offering enhanced security as freight moves without stopping and is often transported in two stacked containers on the railroad.

Schneider’s Mexico Risk Management team works closely with shippers’ risk management departments to identify challenges, implement effective solutions, and adapt as supply chains evolve. To read Schneider’s full article on Mexico’s cargo theft click here.

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There’s no getting around one thing: Every motor carrier needs safety policies.

If those policies have ever backfired at your company, as they inevitably have at some point for many, have you considered that it shouldn’t be a policy at all?

“You have those occasions where the policy [gets] broken, but you never have any other issue with this driver. Do [you] have to fire him? According to the policy, yes, you do,” said Brian Runnels, VP of safety at Reliance Partners, a trucking insurance and safety consultancy agency, during a mid-March WHAT THE TRUCK!?! interview.

Runnels was referring to one of two kinds of rules that motor carriers set for their drivers: policy, which is required, and guidance, which is suggested.

Depending on what the subject is, your company might be creating unnecessary burden by enforcing a policy, and being forced to let a good driver go, when you would be better off with creating guidance around that topic.

A good rule of thumb is this advice from Runnels: “If an issue is directly related to FMCSRs [Federal Motor Carrier Safety Regulations], then it probably requires a company policy with direct consequences.”

Policies usually leave no wiggle room for interpretation. Either you follow the stated hours of service rules or you don’t, for example. Clear consequences for noncompliance are baked into the policy: whether it be a coaching, written warning, termination or another specific disciplinary action.

Where companies go wrong, Runnels said, and what he’s done in the past, is by making everything a policy — from random drug and alcohol testing procedures to time off procedures and everything in between.

In the worst-case scenario, in court a plaintiff’s attorney could go after a carrier for breaking a policy, Runnels warned. This could happen in a case in which a driver violates a company policy that the plaintiff’s attorney believes could have contributed to an accident, for instance.

Guidance is a best practice that drivers should adhere to, not mandatory in the way policies are. The stated consequences for broken guidance usually contain language that makes it clear the suggested disciplinary action, but not required, and leaves room for some flexibility and case-by-case handling.

Guidance can be applied to subjects that aren’t covered in the FMCSRs, like when drivers should and shouldn’t drive during adverse weather.

In some situations, guidance can also go above and beyond the FMCSRs. This could look like a carrier putting into place the best practice of taking photographs of any defects to their vehicle during pretrip inspections.

As a safety consultant, Runnels interacts with all types and sizes of carriers across the country. More and more, he’s been seeing carriers implement processes for their drivers as guidance instead of policies. This allows a carrier to still make a tangible rule that gives it a stance on something without being pushed into a corner the way it would with a policy.

Still, there are many cases where there are policies on the books that would be better off as guidance. Runnels suggests carriers review their policies and guidance once per year.

“When we go out to customers or prospects and we look at their safety policy manual and it’s as thick as the FMCSRs, you definitely know that there are some things that aren’t being followed in there. Either they’re old [and] they don’t apply anymore or just forgotten,” Runnels noted.

So many policies can also place extra pressure on drivers on top of an already stressful job, making them feel like every misstep could land them in trouble with management.

It’s easier to get a buy-in from drivers for new guidance than policies, Runnels explained. Carriers can sell drivers on a new process or procedure for the betterment of the organization rather than saying it must be followed or they will experience consequences for noncompliance.

However, guidance still requires communication and follow-through between the safety department, operations and drivers to be effective.

“Guidances are something built on communication, and there [needs to be] some consistency when you have a guidance — that whether it is a corrective action or retraining, or however it’s handled after the fact,” Runnels said.

To learn more about Reliance Partners, click here.

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Thom Albrecht, chief financial officer and chief revenue officer of Reliance Partners, isn’t holding his breath for a turnaround. He figures any conversation about the recovery of freight volumes, rates or even profits isn’t worth having until possibly 2024.

“Even as volumes pick up a little bit seasonally, it’s not going to be very fun from a profit perspective,” he said, suggesting that a brutal bid season and lower contract rates may characterize the rest of the year.

Albrecht joined FreightWaves’ WHAT THE TRUCK?!? to discuss why he feels bearish on the market this year.

No single issue can explain all of freight’s woes, as Albrecht noted that freight comes from different buckets. However, it appears that many buckets are emptying fast.

For instance, industrial production went negative last quarter for the first time since Q2 2020, declining at an annual rate of 1.7%, he noted.

“Keep in mind that from the second quarter of 2021 through the second quarter of 2022, industrial production grew about 5%,” Albrecht added. “It’s gone negative as corporations have revised their capital expenditure budgets — that’s going to be a drag on freight this year.”

While final 2022 figures are not in for the S&P 500, Albrecht estimates that corporate capex grew about 15% last year or about 2 times inflation and that in 2023 it is possible that capex will not even keep pace with inflation.

Freight opportunities are also hindered by a sharp correction in housing, as evidenced by decreasing home sales and housing starts. Existing home sales have fallen 11 consecutive months sequentially, while the year-over-year in both November and December was about 35%. Last January existing home sales were an annualized 6.65 million, but by December were just 4.02 million.

Though he doesn’t expect a collapse anywhere close to the 74% drop in housing starts between 2005 and 2009, from 2.1 million units to 554,000, Albrecht did note that housing starts dropped 3% in 2022 to 1.553 million and could drop 15% to 20% to perhaps as low as 1.2 million units.

The post Reliance Partners CFO bearish on trucking rebound in 2023 appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Has a post-accident inspection ever blemished your compliance, safety and accountability score? If so, there’s a chance it could be reversed.

“Violations that occur as a result of an accident are not supposed to count toward your CSA score,” said Robert Kaferle, Reliance Partners’ vice president of safety.

However, carriers far too often accept the penalty as just a byproduct of the accident investigation process when this simply isn’t the case — or at least it shouldn’t be.

Inspectors make mistakes, too.

Carriers that feel they’ve wrongfully received a violation should use the Federal Motor Carrier Safety Administration’s DataQ system to review the charge. This simple trick may save your CSA score from rising a few points.

Kaferle recently helped a carrier client through this exact scenario. The carrier was perplexed after noticing its CSA score had slightly risen after one of its drivers experienced an accident.

Thankfully, the damage was minor — a busted trailer light and a gash to one of the tires. But the post-accident inspector showed little interest in how or why the damage was there. What only mattered was that damage was present, thereby deeming the driver to be in violation.

With the carrier facing both FMCSA and state-level violations, Kaferle knew just what his client should do — DataQ. And to its amazement, each charge was dropped.

“I want to make sure that every carrier reviews their post-accident report carefully and DataQ any violations received that were caused by the accident,” Kaferle said.

In short, DataQs allows users to track and petition a review of federal and state data issued by the FMCSA that’s believed to be inaccurate or incomplete. Kaferle explained the DataQ process extensively in a recent FreightWaves article headlined “Insurance FAQ: What exactly is DataQs?”

“If you can find a logical and reasonable basis to challenge a violation, then you should absolutely DataQ,” Kaferle said.

However, he warns against thinking every violation can be reviewed. Indisputable violations will be rejected, ultimately wasting everyone’s time.

Although the review process could take a couple of hours or days to weeks or even longer, Kaferle urges carriers to be patient — because the wait can be totally worth it.

Carriers can learn more about DataQs by visiting www.dataqs.fmcsa.dot.gov/.

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Running a cross-border business is hard enough, but even more so when seafood is in the mix. Now you’ve got to worry about spoilage in addition to cargo theft and other risks.

Phillipe Katkhouda knew that he couldn’t run a successful cross-border shipping business without strict adherence to risk mitigation, so when he entered the industry in 2017, he made sure the cross-border aspect of shipping was his forte.

Katkhouda founded Paragon LLC, a cross-border seafood distributor based in Pasadena, California, with one goal in mind: ensure that Mexican seafood is transported safely across the border.

While in the business of cold chain logistics, Paragon isn’t a distributor, nor does it utilize cold storage that often. Instead, it engages in drop shipping. The 10-person team serves wholesalers, importers and distributors in Los Angeles, San Francisco, New York, New Jersey and Miami.

But it’s south of the border where most of the action takes place. Striving for the utmost in quality, Katkhouda went about ensuring that his Mexican operations and partners were on the same page. This meant having full control over the product itself.

Katkhouda went about investing in a number of plants throughout Mexico, going as far as to buy a plant in Baja California to oversee its processes.

“We control everything from the way it’s caught to the way it’s brought back to the beach; how it’s taken from the beach to the plant to how it’s processed at the plant; how it’s packed to how it’s put on top throughout its entire ride from Mexico to Los Angeles or to San Francisco, Miami or wherever in the United States the product needs to go,” Katkhouda said of the specifics of his shipping controls. “We have certain policies that we put in place that a lot of other producers don’t have.”

What’s more, he made sure to form strong partnerships with the fishermen working on his behalf.

“One of the things that really separates Paragon from any other importing or exporting companies is the very strong feeling of responsibility we have towards our fishermen,” Katkhouda said, describing the pride he feels in supporting over 300 families in these fishing communities. “We’re talking about the people in these villages in that their main income is whatever they’re able to get from the ocean, so we take great pride in making sure that everybody is taken care of as we bring the American culture of excellence into those regions.”

Such measures have strengthened Paragon’s seafood cold chain operations, a chain which he said must never be broken. However, this is easier said than done in Mexico.

For starters, the climate is hot and dry. Katkhouda said it can be challenging — and expensive — to ensure that each of the 150 fishing vessels has enough ice to store each catch, in addition to the trucks hauling the loads to the processing plants. However, he said taking those precautions is worth every penny.

Fishing occurs daily, but each catch spends no more than two hours aboard before being brought ashore, where it’s immediately hauled to a processing facility. The whole process is completed within 24 hours.

But these measures are just to ensure that processing is done correctly. The real challenge comes when getting the product stateside. To mitigate transportation risks, Katkhouda said his team first makes sure the driver is eligible to drive — are they fully rested and in good shape? Also, are they CTPAT certified?

The second step is to make sure the trailer is what he calls “prefrozen.” Paragon won’t allow anything to be loaded unless the trailer’s thermometer reads minus 5 degrees Fahrenheit.

Katkhouda’s third step is to ship only in the best conditions. In addition to checking the weather and route conditions, Paragon’s trucking partners move only in the daytime, especially in Mexico, to avoid potentially sketchy scenarios. Shipments head out primarily in the morning and no later than midafternoon.

The fourth and final step is to be in constant communication with the drivers. While it isn’t common for a shipper to have direct contact with a logistics partner’s driver, Paragon has formed special relationships with their trucking partners in order to chat with drivers and track each truck via GPS.

“If something happens, we wanna know first,” Katkhouda said. “We don’t want to hear it from the trucking company, we want to hear it from the truck drivers, because the faster we know something is going on the quicker we can respond.”

Mark Vickers, Reliance Partners’ executive vice president of international logistics, applauded Katkhouda’s methods and stressed how important it is for Mexican carriers and logistics service providers to follow suit, encouraging them to be transparent on any issues that arise. “For a cold chain to really work, visibility and that communication is paramount,” he said.

But no cross-border operation is complete without the added protection that insurance provides. Even when precautions are followed to a T, an accident is bound to happen.

Vickers said that over 90% of small to midsized shippers in the U.S. involved in moving their product from within or across the border are taking risks upon themselves by attempting to control everything. But unfortunately those controls don’t always hold when somebody drops the ball.

Katkhouda found out the hard way. After hundreds of successful loads, one shipment was lost when the truck overturned, spoiling its seafood cargo.

“I started thinking, I don’t want that to happen again, but if it does … I want to make sure that we’re covered,” Katkhouda said. He had heard of Mexican policies before, but mainly from trucking companies discussing its complexities. Katkhouda assumed that a simplified and Americanized policy existed somewhere but was probably really expensive.

That was until he came across Reliance Partners’ All-Risk Shipper’s Interest Cargo Insurance, which covers standard and high-value Mexico and international shipments on a per-shipment or per-project basis from the moment of pickup until final delivery regardless of mode.

“The process to get insured was very easy and it just was the right fit, completely the right fit,” Katkhouda said, explaining that Vickers “gave me a sense of peace and that this was something that I needed to do.”

“I came to the realization that as much as we try to control things, there are things in life that we cannot, and there are things that are going to happen. And so I wanted Reliance Partners to be there as part of the team and to make sure that if all of our controls fail, at least we have somebody that we can rely on.”

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They say the grass is greener on the other side of the fence, but in terms of shipping, this is definitely not the case for goods bound for Mexico. Cross-border shipping carries inherent risks that often can’t be avoided. From differing rules and regulations to theft, it’s best to equip your business with partners who know the ins and outs of shipping on both sides of the border.

Mark Vickers, Reliance Partners’ executive vice president of international logistics, teamed up with Troy Ryley, president of Redwood Mexico, to share best practices for improving cross-border trade and risk management.

The latter should be addressed first when considering operating on the other side of the U.S. Southern border. It goes without saying that safety remains the top concern for carriers in Mexico, especially in its central and western regions.

Over 5,000 cargo thefts were reported in Mexico during the first half of 2021 alone. According to Mexico’s National Public Security System, the items most often stolen include food and beverage items, clothing and footwear, auto parts, steel, tires, and alcoholic beverages.

This poses safety risks directly to the carriers, but the shippers themselves can equally suffer — financially, at least. Vickers has discussed this in previous articles with FreightWaves, comparing Mexico’s freight insurance requirements to the “Wild West.”

Keep in mind that carrier liability in Mexico is nearly nonexistent, as carriers aren’t required to provide coverage for shipments, leaving shippers on the hook for damages. Consider this: U.S.-based motor carriers can be liable for up to $1 million in cargo loss, while Canada-based carriers have a maximum liability of $2 per pound of freight. In contrast, Mexico only requires carriers to be liable for $0.025 for every pound transported.

It’s for these reasons that Ryley urges shippers to utilize cross-border insurance to mitigate risks south of the border. Although beneficial, preventative measures like carrier vetting, trailer-tracking technology and increased security at facilities are only effective to an extent.

“The bad guys are smart,” Ryley said. “They have jamming units; we’ve seen jamming units that’ll actually jam the signal for any kind of tracking device, whether it be inside or outside the vehicle.”

He reasoned that transferring risk away from theft is hard when it’s rampant across the country. Moreover, Ryley said it can be very difficult to recover stolen assets.

“Reliance Partners has been a fantastic partner, providing us with quick, accurate, timely and responsive quotes,” Ryley said. “We feel very comfortable recommending them to major clients of ours, to Fortune 500 companies when we need that type of coverage.”

Borderless Coverage powered by Reliance Partners provides cross-border cargo insurance for the price of only a fraction of the load value. Not only is it relatively inexpensive, but the coverage extends to both domestic and international shipments of all varieties.

U.S. shippers have found it incredibly easy to deploy each of their loads to Mexico using Borderless Coverage’s shipper’s interest usage-based insurance because of its ability to provide all-risk full or partial value coverage for their products in Mexico and around the world.

“We created Borderless Coverage specifically for shippers, brokers and carriers that needed Mexican cargo insurance; however, we built it on an international platform, so you can get coverage from pickup to delivery anywhere in the world,” Vickers said. “Our number one use case just happens to be Mexico because of all of the uncertainties that Ryley has discussed.”

With the right coverage in place, shippers can enter the Mexican market with confidence, which allows them more time to improve their cross-border operations. The growing need for even greater digital logistics has, in turn, led many shippers and carriers to Redwood.

The border affects shipping in many ways other than safety. Discrepancies in regulations and business practices, not to mention language and culture, often induce headaches for shippers.

“I have called it a black hole for years,” Ryley said. “The problem is that you’ve got so many points of contact, including both U.S. and Mexican carriers, processing agents, U.S. and Mexican customs brokers, Mexican forwarders, and shippers at the origin point, all of which nobody’s been able to bring together. That’s what we’re doing at Redwood.”

Redwood’s technology suite provides users with trucking visibility into U.S. and Mexican carrier operations. This suite includes LoadRunner TMS and its intuitive Logistics Platform as a Service (LPaaS), which offers plug-and-play logistics technology and freight services to fit your cross-border needs.

“We can connect anyone to anything,” Ryley said, describing its open logistics ecosystem, which offers both real-time, API-lead digital logistics and 3PL services, as well as platform services to implement and integrate your data supply chain.

“We’re incorporated in both Mexico and the U.S. and are fully functional as a cross-border truck brokerage business,” Ryley said. “Redwood also handles U.S.-Mexican customs brokerage as part of our operations, warehousing distribution, along with a slew of other services, including technology solutions.”

Vickers stated that the best way for global shippers to access all-risk, shippers’ interest cargo insurance in Mexico is through their top freight brokers like Redwood. “It’s great to have a partner like Redwood who understands the technology associated with visibility and the technology now associated with cargo insurance.”

The post Combining insurance and FreightTech to hurdle any cross-border issue appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

This recap is from Day 3 of FreightWaves’ F3 Virtual Experience.

TECH IN ACTION TOPIC: Per-load cargo insurance coverage simplified with Reliance Partners and EZ Loader.

DETAILS: Trucking insurance specialist Reliance Partners and freight brokerage transportation management software company EZ Loader want to level the playing field for small and midsize carriers that want access to the same freight markets as the bigger guys. Reliance Partners’ Jessie Merritt and EZ Loader’s Brad Clark discuss how their companies have teamed up to accomplish that by extracting time and costs out of the cargo insurance process for truck brokers.

SPEAKERS: Merritt is the VP of sales at Reliance Partners and Clark is the sales director at EZ Loader TMS.

BIOS: Merritt serves on the board of the Tennessee Trucking Foundation and is the current chairman of the Tennessee Trucking Association’s Young Professionals Council. She combines her technology and transportation experience in her work with RUBI, Reliance Partners’ usage-based insurance for motor carriers and freight brokers.

Clark, who was previously a sales manager at a freight brokerage, started at EZ Loader TMS in 2019. He currently heads up new client acquisition and utilizes customer feedback to help drive future development efforts.

KEY QUOTES FROM MERRITT AND CLARK:

“On the LTL side, anyone in the industry has seen that they’re never covered for the value. It takes months to get your money back. It has become a big headache for the freight broker, and it puts the broker in a bad position with the client as well.” – Brad Clark

“For any high-value freight, [brokers] can now not only source carriers that match up with a particular lane, they can source carriers based on whether the carriers’ cargo insurance covers it.” – Brad Clark

“We’re at a point with the supply chain where we have to level the playing field for midsize and small motor carriers to move every piece of freight with every opportunity that they have.” – Jessie Merritt

The post F3 Tech in Action: Taming the cargo insurance challenge appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

It’s one thing to recruit quality drivers but keeping them is the real challenge.

The industry has long dealt with a driver shortage that seems to have only worsened since the beginning of the pandemic. Now more than ever, drivers have the upper hand at the bargaining table.

It’s up to motor carriers to earn the loyalty of their fleet but doing so means changes must be considered. Reliance Partners’ director of safety, Robert Kaferle, urges companies to establish driver retention programs among other changes to convince quality drivers to remain with their fleet.

“Gone are the days where carriers have the ability to tell a driver, ‘If you don’t like it, just go,’” Kaferle said. “I hear carriers say they don’t have the time to address these issues or create a retention program. Right now, drivers are your business. Take the time to do it or you’ll have plenty of time soon enough.”

The industry widely acknowledges that driver shortages are problematic, but the reasons for it are many. The majority of the blame currently rests on COVID-19, as the pandemic hit trucking with a double gut punch.

First, CDL schools nationwide were closed or disrupted, making it difficult for nearly 25,000 to 40,000 truck drivers to be trained in April of last year. Then, as new entrants slowed to a trickle, the trucking industry also saw many of its older and experienced drivers retire or leave the industry.

The American Trucking Associations note the shortage has only increased. Before the pandemic, the shortage was estimated to be around 61,500 drivers needed to keep goods flowing, but that number has since reached 80,000 drivers.

It’s never too early to start recruiting. CDL-licensed drivers under the age of 21 are restricted from interstate driving. However, Kaferle recommends fleets to look into intrastate hauling opportunities to engage drivers under the age of 21. Giving drivers as young as 18 the shot at hauling shorter loads closer to home allows them to gain experience that builds the foundation for what may result in an established career in trucking.

But the promise of high wages and guaranteed work has lost some of its luster as driver preferences have changed. The stresses of life on the road have many yearning for more time with family, shorter lengths of haul and belonging to a fleet with a cohesive driver culture.

Despite the lone nature of the job, most drivers want to feel a sense of belonging with their company. Kaferle said forming a bond with your drivers begins immediately at orientation, describing that it’s crucial that drivers feel they’ve made the right choice.

However, recognition must go beyond the first day; fleets should give their drivers a shoutout for good performance among other holidays such as work anniversaries and birthdays. Little things like this over time can go a long way in making drivers feel appreciated.

“We’ve gone from an industry where truck drivers just wanted to get in the truck and drive to now where recognition is wanted most,” Kaferle said.

This isn’t to say that the haul itself is no longer a priority. In fact, Kaferle said it’s very beneficial to evaluate lanes and to offer dedicated routes when possible.

“Drivers love to have dedicated lanes because they know where they’re going, they know when they’re going, they know how long it takes them to reach each truck stop where they can stop at and plan,” Kaferle said. “There’s no downside to a dedicated route.”

Kaferle instructs his fleet clients to focus on three things to strengthen driver retention: driver interaction, equipment upgrades and operations improvements.

His aim is for fleets to be like a second family to their drivers. If that’s the goal, he said it’s important to also allow for drivers’ spouses to be included in the picture. Whether it be voicing their opinions at safety meetings or inviting families to holiday parties, Kaferle encourages companies to create a sense of community between the motor carrier, its drivers and their families.

Another thing fleets can do is build trust with drivers through the freedom to drive unrestricted. Rather than implement speed limiters to encourage safe driving for instance, Kaferle said that drivers much appreciate fleet managers who trust them to make the right decisions.

“What you’re really doing is rewarding your fleet for doing the right thing, and you’re managing the exception with telematics and event notifications so the drivers that are speeding and are abusing that privilege can be dealt with without penalizing the whole fleet,” Kaferle said, acknowledging that while he doesn’t encourage speeding, restricting its function prevents drivers from quickly passing slow-moving vehicles in a timely manner.

Kaferle also encourages motor carriers to make sure their customers are properly taking care of their drivers, too. He suggests asking shippers to allot more break time to their drivers, as well as consider more efficient ways of loading and unloading, perhaps adopting a drop-and-hook scenario.

“I can’t tell you how many times I’ve talked to drivers that have delivered to places that wouldn’t let them use their restroom,” Kaferle said. “There’s a huge opportunity for the carrier to get their customers involved in retaining their drivers and making sure that their drivers are taken care of.”

Kaferle said not to forget your aging or just-retired drivers, as they’re still of value. The median age of commercial drivers is 46, compared to 41 for all other workers. Aging drivers are chock-full of experience that younger drivers have yet to accrue. For drivers looking to settle down, Kaferle suggests asking if they’d like to reduce their hauls to perhaps pulling just a load or two every week or so.

“Then you could have three or four drivers that pull just one or two loads a week to share the same truck throughout the week,” Kaferle said.

The post Tips for boosting driver retention appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Teams that don’t follow a well-executed game plan aren’t expected to succeed. The same goes for trucking companies without safety policies in place. Don’t be surprised when trouble comes your way.

Nothing great is built without a blueprint, which is why it’s important for motor carriers to put pen to paper as to what they expect from their driver workforce.

Reliance Partners Director of Safety Robert Kaferle shared his thoughts on documenting policies and procedures. Over the years, he’s surprised by how many companies lack even basic operational and safety guidelines.

“The smaller the carrier, typically the less documented policies and procedures they have,” Kaferle said. “It’s because they’re focused on trucking, they’re focused on getting loads from one place to the next.”

It can be hard for startups to blindly follow profit as anxiety builds to make names for themselves. But Kaferle said that larger carriers are guilty of running things without rules in place too.

“When speaking with them, almost 100% say, ‘Well, everyone knows what they’re supposed to be doing. For instance, everyone knows what our cellphone policy and seat belt policy is,’ despite it not being documented,” Kaferle said.

One of the first things Kaferle asks of his clients is to establish policies that cover the easy things, suggesting that cellphones, seat belts, speeding and hours of service are good areas to start with. Adherence to 49 CFR Parts 392 and 397 as well as FMCSA’s Behavior Analysis and Safety Improvement Categories (BASICS) is strongly recommended.

Once the groundwork has been laid, Kaferle’s next step is to implement policies that can be expandable, meaning management can update its language or penalties if necessary.

A safety program’s ultimate goal should be to increase safety while inversely reducing the severity and frequency of accidents through policy enforcement. In short, the goal is to correct bad behavior. But keep in mind that disciplinary actions should be progressive.

It wouldn’t be fair to treat a seat belt violation the same as a drug or alcohol offense, but rather to use a three-strike method for low-level offenses. For instance, a first strike warrants a written warning, a second one brings a suspension and a third in six months results in termination, Kaferle explained. However, the three-strike method isn’t appropriate for every violation. Some offenses should be met with immediate termination.

“There are some violations that you can absolutely retrain, such as seat belt usage and speeding,” Kaferle said. “Things that you shouldn’t tolerate and offer retraining in include drug and alcohol violations.”

As carriers grow larger, Kaferle recommends management discuss establishing an accident review board, giving drivers an opportunity to appeal a violation and explain their side of the story. Although it can be a meticulous process, he said that adding this aspect of a safety program can go a long way in improving retention because drivers feel they have a voice.

Laying out precisely what’s expected of your drivers and what they can expect if found in violation of such rules ensures everyone’s on the same page from the get-go, leaving no room for ambiguity. Kaferle said these talks should be had with new drivers during orientation, describing how common it is for new drivers to express frustration when they’ve unknowingly broken a rule.

Even more frustrating is when carriers assume that having no policy is a good policy, which Kaferle said is a common belief. That includes assuming that not having a rule banning cellphone use will absolve themselves of liability if a distraction-related accident were to occur because the driver didn’t technically break any “rules.”

Kaferle was quick to point out that carriers would absolutely face repercussions. Drivers should be instructed — and should know — to not use phones while driving, as protecting the motoring public should always be the top priority.

A policy itself can’t prevent distracted driving from occurring, as drivers are ultimately responsible for the decisions they make, but having rules in place can mitigate the behavior and help to alleviate the carrier of liability.

“One of the things that Reliance Partners does for our clients is evaluate their policies and procedures to see how they’re being utilized,” Kaferle said. “If an inspector sees that you’ve got policies and procedures in place, it goes a long way in alleviating their fears of you being a non-quality carrier.

“However, if you’re receiving violations despite having policies and procedures in place and are found to not be following them, that’s a huge red flag. So not only do you have to have them in place, but you have to follow them.”

Kaferle welcomes any and all questions from carriers unsure of their compliance, ensuring that he doesn’t want to penalize but help his clients become safer. Reliance Partners’ team of risk management experts offer best-in-class customer service to members across the transportation and logistics landscape, providing in-depth advice tailored to each client.

It’s in the best interest of everyone on the road for companies to establish and follow proper safety procedures. New motor carriers, even those with experience but unfamiliar with the rules of the road, should partner with industry experts who can guide toward compliance.

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