Economic growth in Mexico has caught the attention of many U.S. manufacturers and shippers looking to nearshore or take advantage of Mexico’s improving transportation networks and young, educated workforce. It seems that Mexico and the U.S. share more than just a border.

“A lot of companies that went to China, Thailand or Vietnam are considering bringing their investments back to North America,” said Kenneth Smith Ramos, a partner at Agon, a full-service antitrust and regulatory advisory firm in Mexico that helps international companies develop strategies to navigate the country’s regulatory and market complexities.

“Because of those different elements such as USMCA, lower labor costs and a skilled workforce, we’re seeing Mexico become a very attractive location for that investment.”

Ramos, who previously served as Mexico’s chief negotiator for the modernization of NAFTA that led to the signing of the United States-Mexico-Canada Agreement, discussed Mexico’s rising economic and trade status with Mark Vickers, Reliance Partners’ executive vice president of international logistics.

Agon and Reliance Partners together maintain pre-vetted relationships with 3PLs that operate free trade zones (FTZs) and bonded facilities at their warehouses. These groups are helping shippers bring products into Mexico by taking advantage of the tax deferrals that Mexican FTZs and bonded warehouses provide.

“It’s the right time, especially when companies throughout the world are really taking nearshoring seriously as companies are coming back home,” Ramos said when asked if shippers should consider venturing into Mexico.

China remains the leading trading partner of the U.S., but not by as large a margin as many assume. Mexico and Canada have joined China in a tight race for pole position. In fact, Mexico held the top ranking just last April.

It then fell to third place before surpassing Canada in January to become the United States’ second-largest trading partner, as trade with the U.S. rose 17% year-over-year to $56.9 billion. Comparatively, China’s trade with the U.S. jumped 14% in January to $59.2 billion; Canada stood at $56.8 billion.

“Mexico has a market of 127 million people. We’ve all been hit by the economic crisis, but as the U.S. economy begins to grow, so does the Mexican economy because we’re very much integrated,” Ramos said, adding that he expects the Mexican economy to grow 4% this year.

Mexico’s economy began to diversify after the passage of NAFTA in 1994, as Ramos noted the advanced manufacturing in sectors such as automotive and aerospace that have entered the country in recent years.

He said these developments have greatly improved the skill sets of Mexico’s younger workforce, pointing out that they cannot be categorized simply as cheap labor.

The influx of trade, foreign investment, and federal and state funding has kicked off a sort of a competition among the Mexican states. Ramos said that the central Mexican states are catching up with their northern neighbors with an uptick in advanced manufacturing. In fact, he described Guadalajara in the state of Jalisco as “Mexico’s Silicon Valley” for its burgeoning software technology sector.

Since NAFTA, significant highway and rail infrastructure projects have been underway throughout the country. And with USMCA, Mexico has even more plans in the works, as Ramos said the aim is to bolster its intermodal port and rail operations.

With the rise of nearshoring and increased cross-border trade, now is an optimal time to take advantage of what Mexico has to offer.

However, it’s best to enter the market with a trusted partner.

“It’s important to work with someone on the ground in Mexico that understands the rules at the federal and domestic level … to help coordinate all of the logistics, legal and regulatory considerations so that they can reduce costs without having to worry about learning how Mexico works,” Ramos said. “Working with a company such as Agon, in partnership with [Reliance Partners], we’re able to reduce costs to a level that makes investing in Mexico more profitable and more likely to succeed.”

Reliance Partners, a proud partner of Agon, not only specializes in North America in cross-border and international usage-based insurance but also provides international business consulting services.

To ensure all of their bases are covered, shippers should consider Reliance Partners’ All-Risk, Shipper’s Interest Cargo Insurance through its Borderless Coverage program. From the moment of pickup until final delivery, this coverage protects against cargo theft and damages for shipments regardless of mode.

Vickers said most shippers fail to realize that they’re not receiving cargo insurance in Mexico or erroneously assume that their U.S. cargo insurance extends into Mexico.

But with an All-Risk, Shipper’s Interest policy, coverage can be secured on a per-shipment or per-project basis for high-value Mexican and international shipments.

Freight brokers who have historically turned down freight moving into Mexico can now serve shippers confidently with this policy in place. A network of trusted Mexican-based carriers, along with good risk management processes, cargo insurance and world-class shipment visibility, is just what global shippers wary of entering the Mexican market want to hear.

The post Mexico increasingly attractive for US shippers, manufacturers appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Excerpt: Reliance Partners’ Brian Runnels and Mark Barlar speak from their driver and State Patrol experience on the dangers that speed, distractions and fatigue present in construction zones.

Large trucks are involved in one-third of all fatal crashes in work zones, according to the Federal Motor Carrier Safety Administration (FMCSA). The agency issued a press release last week detailing its findings, and urging drivers to stay alert, obey traffic signs and allow all vehicles extra space around them.

“Around most parts of the country, there’s two seasons: winter and construction,” said Reliance Partners Director of Safety Brian Runnels. 

Traffic cones and warning signs are supposed to slow traffic to a crawl, reducing the risk of injuries amid adverse road conditions, but these “safety zones” are often the scenes of deadly accidents. 

The Federal Highway Administration (FHWA) reports that 842 people lost their lives nationwide in highway work zone crashes in 2019, the most recent year with data on record. The previous year’s total was 757, marking an 11.2% increase in fatalities and the largest percentage increase of deadly accidents in highway work zones this century.

“Fatal crashes occurring in work zones are both tragic and absolutely preventable,” said FMCSA Deputy Administrator Meera Joshi in the press release. “I am especially concerned that large trucks continue to have a disproportional involvement in fatal crashes occurring in work zones — 33 percent — when large trucks comprise roughly five percent of vehicular traffic. Don’t allow yourself to become distracted, slow down, obey the signs and the instructions of flaggers and be courteous and safe by giving every vehicle extra space. Highway workers equally depend on you for their safety.”

Runnels said that it all comes down to general awareness of your surroundings. Recording over 2 million safe driving miles over his career as a professional driver, he urges drivers to pay attention to road signs, the traffic in front of them and most importantly, their speed.

“Your awareness has to be heightened even more than normal because traffic could come to a stop at any moment,” Runnels said. As highways become ever more congested, however, he warns that backups can occur way before the initial warning signs or first sighting of traffic cones.

FMCSA states that it takes nearly the distance of two football fields for a fully loaded truck traveling at highway speeds — in good road conditions — to completely stop. Add traffic and distracted driving to the mix, and the consequences may be fatal. “You can’t argue with physics; I don’t care how good a driver thinks they are,” Runnels added.

Mark Barlar, Reliance Partners’ director of risk services, notes that velocity plays a big role in these crashes. The stark contrast in weight between a semi truck and an automobile — 30,000 to 80,000 pounds (depending on load sizes) and 3,000 to 5,000 pounds for an average car — can be compared to a bowling ball and pins. When a semi slams into a car, especially at high speeds while the car is idling, the impact is so severe that the car is often left unrecognizable.

Barlar explained that crash severity increases dramatically as weight and velocity increases. For example, he said a wreck occurring at 60 mph versus 30 mph results not in twice but four times the damage. “With velocity, if the speed is doubled, the amount of force involved is quadrupled,” Barlar said. “That’s why speed is such an important factor that drivers should be aware of.”

Barlar served on the Wisconsin State Patrol for 22 years, one of his duties being post-crash inspections. He said most work zone accidents involved drivers who were drowsy or had fallen asleep and plowed into traffic in front of them. But other cases involved drivers lulled into complacency while driving familiar routes, and those who simply took their eyes off the road for a split second to reach between their seats for something like a cellphone.

Barlar presented a few crash scene pictures during the interview, showing an accident involving a handful of automobiles and a tanker hauling hazardous materials. The driver was operating over hours — Barlar estimated 15 hours. He failed to register the decrease in traffic speeds around him due to his drowsiness, despite clear road and weather conditions. The reduced speeds became more apparent when he topped a hill, but it was too late to stop.

“I equate tired drivers with intoxicated drivers,” Barlar said. “When you’re doing 65 or 70 miles per hour, you have to understand that every mile an hour you’re traveling about a foot and a half a second. So if you’re at 70 miles an hour, you’re actually traveling about 105 feet per second. Dozing off for let’s say two seconds takes you perhaps a second to recognize the situation and maybe another second to start applying the brakes; that’s a total of four seconds in which you’ve traveled about 450 feet.”

If physics doesn’t scare you, perhaps the threat of a speeding conviction will. Barlar warns that going just 1 mph over the speed limit in a construction zone warrants a 10-point penalty to your Compliance, Safety, Accountability score — the same penalty for going 15 mph or more over the posted speed limit when you’re not in a construction zone.

Scores are also weighted by time. For example, the violation can be multiplied by a factor of three if committed within six months of a previous conviction of any kind, so 10 points becomes 30. Convictions are then reduced to a multiple of two between 12 and 24 months and weighted at face value after two years.

“Be alert, slow down and maintain a lot of distance between you and the vehicle ahead of you;

the driver’s focus should be what’s ahead and around them,” Barlar said. “Everybody in this world has someone that cares about them; everybody wants to make it home safely.”

Runnels advises drivers to remain on alert for road construction and traffic congestion all summer long. Thinking long term, if President Joe Biden’s $2 trillion infrastructure bill comes to fruition, Runnels suggests it could result in a major increase in construction projects in the coming years, inadvertently spurring more work zone-related accidents. That makes it especially important to practice cautious driving from here on out.

Notable current and upcoming interstate construction projects

• Bella Vista, Arkansas — Interstate 49 (Estimated completion: May)
• Berkeley, California — Interstate 80 two-phase project (Estimated completion: summer 2023)
• Bowling Green, Kentucky — Interstate 65 lane closures (Estimated completion: late 2021)
• California — I-80 bridge overcrossing demolition in Placer County (Estimated completion: two weeks)
• Chattanooga, Tennessee — Interstate 75/Interstate 24 interchange (Estimated completion: late summer)
• Chattanooga — Interstate 24 bridge replacement (Estimated completion: August)
• Missouri — Interstate 70 resurfacing in Calloway County (Estimated completion: November)
• Fairfield, California — I-80/Interstate 680/SR12 interchange (Estimated completion: fall 2022)
• Maine — Interstate 95 Newport to Bangor (Estimated completion: Mid-late 2021)
• Massachusetts — Interstate 93 renumbering work between Boston and Methuen (Estimated completion: four weeks)
• Minnesota — Interstate 94 Maple Grove to Clearwater (Estimated completion: end of 2021)
• Nashville, Tennessee — I-65 N from Interstate 440 to downtown loop at Interstate 40 (Estimated completion: May)
• Pennsylvania — I-80 through Jefferson, Clarion and Butler counties
• Wisconsin  — Interstate 43 through Sheboygan County (Estimated completion: September)
• South Carolina — Interstate 77 southbound through York County (Estimated completion: three weeks)

The post Stay Alert and Slow Down Through Work Zones appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Let’s face it, your truck probably needs a deep clean.

Perhaps it was one of your New Year’s resolutions, but after a long and relentless winter, a truck caked in grimy layers of salt and dirt may not be the only mess on your hands. A victim of cabin fever, you’ve come to the realization that your cab needs some tidying, too.

Spring has sprung, which means it’s about time to shed the hefty winter jacket, gloves and boots. In this season of transition, take the time to adopt some simple spring cleaning habits for your home on wheels.

Reliance Partners Director of Safety Brian Runnels steps through a few tips — and benefits — for keeping your truck in tiptop shape.

Runnels described himself as being “extremely clean” throughout his over-the-road tenure, saying anybody who knew him during his driving years was aware of his cleaning habits. “I lived in the truck for three to four weeks at a time. It had to be clean.”

Cleanliness often reflects pride in oneself and one’s vehicle. While most drivers take special care of maintaining their truck, some do not, which spurs some motor carriers to instill these values through their rulebooks.

Runnels spoke of his time at Gordon Trucking Inc., where he served as a regional risk manager and driver safety trainer. The truckload carrier would take pictures of the trucks’ interiors everytime they came in for service and discipline drivers who weren’t taking care of their vehicles.

Some fleets are rumored to take cleanliness even more seriously. For instance, Runnels spoke of a wives’ tale about an owner of an unnamed trucking company who paid for his fleet’s truck washes and considered returning a filthy truck to the terminal grounds for termination.

Of course not every company is so strict; Runnels acknowledged that some fleets couldn’t care less about the state of the vehicle as long as the driver is safe and profits keep rolling in. But generally, Runnels finds that motor carriers respond favorably to drivers who take care of their trucks, especially if they’re company property.

Keeping things clean isn’t so hard when you’re prepared. Runnels suggests stowing a few bottles of spray cleaner, wet wipes, paper towels, trash bins and bags, glass cleaner, and even a whisk broom and dustpan — items that can easily be purchased at truck stops.

In addition to a mini vacuum cleaner, Runnels mentioned the effectiveness of an air seat blow gun, a little coiled hose used to blow away crumbs, dirt and other debris, especially in tight spaces.

He also urges drivers to buy a mild degreaser to remove oil and grease from the steering wheel down to the floorboards. “All drivers know that it doesn’t take much grease to make a mess inside your truck.”

Spacious sleeper cabs are stocked full of cabinets, side compartments, cubbies and drawers, rendering clutter inexcusable. But cramped day cabs, too, can remain mess-free with a bit of ingenuity.

“I’ve seen a lot of drivers in day cab trucks use small milk crates or some sort of container that sits on the floorboard in front of the passenger seat holding all of their cleaning supplies,” Runnels said.

He recommends taking advantage of wash reimbursement if that’s your company’s policy. Even if your carrier doesn’t offer such reimbursement, Runnels affirms that drivers should get a wash every now and then, even if it’s pricey.

Switching gears, maintaining the inside of the cab is 100% the responsibility of the driver.

“As far as the inside goes, that’s all on you,” Runnels said. “Take some time each week to clean out the cab, and stay on top of it, just like you would your house. It’s a healthier atmosphere to be in if it’s clean.”

Runnels suggests setting aside 10-15 minutes every time you stop to pick up any messes, whether it be at a truck stop or a shipping facility.

Remember that repetition, no matter how insignificant cleaning something small may seem, will save you a great deal of time from cleaning big messes down the road.

Second, clean cabs can mitigate injuries and perhaps accidents altogether. How? Runnels warns drivers to be mindful of loose objects around their seat. For example, how would you respond if a water bottle rolled out of your lap and jammed itself under the accelerator?

Similarly, in the event of a collision or rollover, he explained that loose debris inside the cab can act as projectiles, causing even more harm to the occupant.

However, dangers remain even when the truck is sitting idle. Runnels reminds drivers not to think of slips, trips and falls as just outside dangers. There are many ways drivers can injure themselves within the confines of the cab. Just think about the times you’ve been injured in your own home.

It should also be noted that spick-and-span trucks are less likely to be stopped for inspections.

“Law enforcement is going to have a less critical eye for drivers and equipment that is clean than a truck that looks like it hasn’t been washed in two years,” Runnels said. “They’re not looking for clean inspections; they’re looking for violations. If something as simple as trying to keep the truck clean is neglected, they’re going to wonder what else is being neglected on that truck?”

The post Spring cleaning: Time to tidy up your truck appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Tractor trailers and automobiles may share the roadways, but not everybody has the right to drive in the proverbial truck lane.

Obtaining a commercial driver’s license (CDL) is a rite of passage for any driver eager to traverse the wide world of logistics. However, this rite isn’t a right — it must be earned.

As the trucking industry continues to grapple with a driver shortage as well as coronavirus-related delays in CDL issuance, the Federal Motor Carrier Safety Administration (FMCSA) issued a final rule in December to lessen the difficulty in obtaining a CDL. The ruling came in response to complaints that the knowledge and skills testing standards were too restrictive. Federal regulators hope that relaxing the rules will provide states more flexibility to test CDL applicants and allow more drivers to safely enter the industry.

The rule change may net more drivers for the industry, but will the propensity for CDL fraud increase as well? That’s the concern of Reliance Partners’ Director of Safety Brian Runnels, who believes federal regulators may be jumping the gun and that the rule change probably won’t do much to bring drivers into the industry.

“I think they’re placing a small Band-Aid on a much bigger problem, which is that the industry isn’t attracting drivers at a rate greater than those leaving,” Runnels said. “Does there need to be something to fix the testing process? Probably. Is it this? I have my reservations.”

The final rule allows third-party CDL skills instructors to perform both the instruction and the qualifying testing for the same applicant — an arrangement that was previously prohibited. States on an individual basis can now allow qualified third-party skills trainers access to both areas of testing.

The final rule goes into effect 60 days after it is published in the Federal Register.

Runnels fears that easing regulations may result in an uptick in CDL fraud in driver schools.

“There’s a lot of schools out there that do things the right way, but there are some that don’t — ‘Pay your fee and we’ll give you a CDL,’” Runnels said, explaining that unqualified drivers are often passed anyway because they pay schools under the table. “The faster they pass them, the faster they can bring more in.”

FreightWaves has reported on a number of cases of CDL fraud over the past couple of years.

For example, in 2019, a former California Department of Motor Vehicles’ (DMV) employee received 22 months in federal prison for CDL fraud. Aaron Gilliam pleaded guilty to conspiracy to commit bribery, identity fraud and unauthorized access of a computer for his role in accessing the DMV’s database to “alter CDL applicants’ records to show that they had passed the written examination” even though they hadn’t. Some applicants never even took the test.

Court documents showed that Gilliam worked alongside two co-conspirators who happened to be owners of truck driving schools in Southern California themselves. It’s alleged that the two would receive money from students, then pass it along to Gilliam and other DMV employees to provide CDLs without applicants “having to take or pass the written and behind-the-wheel driving examinations.”

In another case, a former CDL tester with the Mississippi Highway Patrol was arrested in 2019 for her alleged role in a similar scheme. Tonya Davis stated that individuals had passed the driver skills knowing the tests were never administered, according to authorities. Between September 2017 and January 2018, it is alleged that Davis unlawfully used someone else’s name and testing information.

FreightWaves reports that over $7 million in fines, forfeiture and restitution in addition to more than 54 years in total incarceration for individuals sentenced in CDL fraud have been recorded by federal investigators over the past four years.

Runnels said, “We know where fraud occurred before, but I’m not going to say that’s where we’d see fraud again; it’s quite possible that we may see more oversight in those areas because of that.”

Runnels isn’t alone in voicing his concern. For instance, The Truckload Carriers Association noted that “enforcement will be necessary to eliminate the possibility for fraud by bad actors who simply want to profit monetarily from the new regulatory flexibility.” Overall, TCA is onboard with the rule change despite its reservations.

In response to the criticism of TCA and others, FMCSA stated that it “continues to believe that lifting the restriction … will not diminish highway safety. Extensive requirements and resources are currently in place to help FMCSA and the states maintain the integrity of the process and identify irregularities in skills testing.”

Runnels believes that fraud — if it occurs — will be less likely to be found among motor carriers as he credits fleets for being generally proactive in reducing insurance risks. He said that the possibility of fraud would likely lie at the school level rather than with carriers operating their own school or training program because of potential liability.

“I see that as less likely to occur within trucking companies that have their own training program because insurance-wise, they have a lot at stake when they pass a student and put them on the road,” Runnels said. “They already have to worry about negligent training, negligent entrustment and negligent hiring. Would they want to throw negligent testing on top of that? It’d just be another layer of liability that a trucking company would have if they pass somebody that shouldn’t have been.”

Runnels himself was an over-the-road driver trainer for five years with Gordon Trucking before transitioning to an off-road position with its safety department. He also spent a number of years training drivers for Indiana-based carrier OnLine Transport. While curating the driver school curriculum, he decided against applying to become a third-party tester as he and the company felt it’d be a conflict of interest.

“We saw fraud a few years ago when they allowed instructors to test their own students,” Runnels said. “As someone that created and ran a training program for a carrier, I understand the frustration with scheduling tests but I’m not sure this is the answer.”

The post CDL fraud could rise under relaxed requirements appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Drivers who find themselves at the mercy of momentum quite literally receive a crash course in the laws of physics as their speed becomes uncontrollable. Thankfully, some of the country’s most treacherous highways are equipped with escape routes for trucks in momentum mayday.

Runaway truck ramps can be found alongside highways with intensive downhill grades. Their sole purpose is bringing distressed vehicles to a safe stop. These emergency lanes are typically long, uphill stretches of gravel or sand that create additional friction and rely on the gravitational slow-down effect to stop runaway trucks. Some ramps even consist of arresting cables with netting.

But what causes truckers to jet up a ramp? Brian Runnels, director of safety at Reliance Partners, explained that letting the brakes get too hot — riding the brakes down the hill — is the most common factor that forces truckers to ditch. He said that giving the brake too much pressure downhill can render them “squishy” and ineffective. Worse, it can lead to brake fade — loss of braking power — and can even spark a fire, leaving the driver with no method to slow down.

One of the most infamous stretches of highway that employs runaway truck ramps is on Interstate 24 between Nashville and Chattanooga, Tennessee. Monteagle Mountain is well known for its rugged topography, inclement weather and tight curves.

While traffic on its westbound descent comes across many hazards, Monteagle is mostly known for what its eastbound travelers endure. At the top of the mountain, all commercial trucks are required to stop at the truck inspection station before continuing down the eastern slope. Truckers heading east descend the mountain at a 6% grade for about 5 miles, totaling a 1,933-foot drop in elevation. However, two runaway truck ramps, both on the left side of the road, make the unforgiving terrain less treacherous.

Monteagle’s infamy among truckers has spanned decades and proved to be a challenge even for silver screen trucker Bo Darville — “Bandit” — from the movie “Smokey and the Bandit.” As a song from the movie recounts:

Well he started down the grade when he lost the gear

He hit them brakes found he had no air

The Monteagle grade is steep and long

And everybody that seen it thought the Bandit was gone

— “The Legend”, from “Smokey and The Bandit”

Per the song, Bandit miraculously makes it down the mountain unscathed, but this often isn’t the case for other truckers — even for the ones who use the ramps.

Expect your deceleration to be anything but smooth. Trucks may still roll over or jackknife, depending on the severity of the situation.

“Ramps are filled with soft materials but when a truck hits it, it’s going to do some serious damage,” Runnels said. “Granted, it’s better than what the consequences could be if you don’t use the ramps, but they’re known to tear out an axle or the fuel tanks underneath the truck as well as bumpers and side skirts.”

The Tennessee Highway Patrol has recorded 30 runaway ramp incidents on Monteagle since 2003. While use of the ramps is thankfully low, the danger from which they’re designed to protect drivers is ever-present.

In one incident, a driver made his way to the emergency ramp after losing his brakes. His trailer ultimately overturned after striking a rocky ditch line near the top of the ramp. Another incident reports that a trucker lost her brakes trying to gear down after admittedly going a little too fast down the mountain.

A major contributing factor to downhill accidents is speed. Simply slowing down will significantly increase your chances of making it to the bottom in one piece. Runnels urges truckers to carefully read road signage beforehand as it’ll let you know the roadway’s gradient as well as the appropriate speed at which you should travel.

It is recommended that drivers diligently check their brakes during every pre-trip inspection and visit vehicle inspection facilities when available before making each downhill trek.

“States do a good job of warning drivers beforehand whether it’s a mandatory brake check at the top of the hill, speed limits going down the hill, or warning signs before the hill comes up,” Runnels said. “There’s plenty of opportunity for a driver to get geared down, slow down and be at a speed that can take that hill without a problem.”

Runnels said that when in doubt, come down an extra gear before hitting the hill. He added that it’s dangerous for drivers with manual transmissions to gear up to go a bit faster only to realize that they’re unable to put it into gear because they’ve amassed too much speed. To make matters worse, he warns that once out of gear, a driver’s Jake brake (compression release engine brake) no longer works.

“If the truck’s in neutral, it’s just rolling,” Runnels said. “I won’t say it’s impossible, but it’s very, very difficult to get a truck back in gear when gravity has got ahold of it and is pulling it.”

The post Conquering mountains is a downhill battle appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Saturday, February 16^th 50 Reliance Partners employees volunteered with the Chambliss Center for Children. Groups spread out to tackle several projects from disinfecting classrooms and toys to mulching the playground. A helping hand goes along way, and Reliance is grateful to help in any way possible. Moving forward, we are excited to find needs throughout Chattanooga and serve together.

Want to see more? Follow the link below for a better preview into our day with the Chambliss Center for Children. Be on the lookout for our next Reliance Partners service day! We can’t wait. Know of an area we could serve in? Please reach out to employeesuccess@reliancepartners.com . We would love to hear your ideas on where there is a need in the community.

https://www.youtube.com/watch?v=H4regYFj2Xw&feature=youtu.be

-Anna Rogers

The post The Reliance Way appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

——

Your driver had to wait long past his appointment to unload, and now he’s out of hours. The receiver says the driver has to leave the property, but doing so will break federal hours of service rules. The now-required electronic logging device means he can’t “fudge” his duty records with the ELD as he might have with paper.

In recognition of this dilemma, last June, the Federal Motor Carrier Safety Administration loosened up its guidance on personal conveyance to offer drivers more flexibility so they can find a safe parking spot in these situations.

But there’s been a lot of confusion about it ever since. So, we took a closer look at the guidance and spoke to John Seidl, a former enforcement official who’s now a safety consultant to fleets with Reliance Partners, and came up with these six things you need to know about personal conveyance.

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1. Personal conveyance is not new

Personal conveyance is not a new part of the hours of service regulations. Motor carriers may, at their discretion, authorize drivers to use a commercial motor vehicle while off-duty for personal conveyance. This must be documented in a driver’s logs. That’s not new.

But there’s a big difference in how those rules are now interpreted. The previous guidance prohibited the use of “laden” (i.e., loaded) vehicles as personal conveyance. The new guidance instead focuses on the reason the driver is operating the commercial vehicle while off-duty, whether it’s loaded or not. This allows drivers who run out of legal driving hours while delayed at a shipper or receiver to get to the nearest, reasonable, safe place to obtain rest.

2. What the guidance says

Here’s the core of the guidance:

“A driver may record time operating a CMV for personal conveyance (i.e., for personal use or reasons) as off-duty only when the driver is relieved from work and all responsibility for performing work by the motor carrier. The CMV may be used for personal conveyance even if it is laden, since the load is not being transported for the commercial benefit of the carrier at that time. Personal conveyance does not reduce a driver’s or motor carrier’s responsibility to operate a CMV safely. Motor carriers can establish personal conveyance limitations either within the scope of, or more restrictive than, this guidance, such as banning use of a CMV for personal conveyance purposes, imposing a distance limitation on personal conveyance, or prohibiting personal conveyance while the CMV is laden.”

Seidl emphasizes that personal conveyance has nothing to do with sleeper berth or on-duty/not driving status. It is an off-duty status. “The key is, are you doing something that would be considered work related to and benefiting the carrier? If it’s not to their benefit, and it’s not work, then it most likely falls under personal conveyance.”

For instance, he says, if you’re driving to a plant or terminal to be loaded or dispatched, that’s work. So is driving the truck to have maintenance performed. “A good rule of thumb,” he said, “is if you’re trying to convince yourself that it’s not work, then it’s probably work.”

Seidl suggests drivers laminate the last page of the PDF version of the guidance and keep it in their truck, because it specifically addresses under what circumstances a driver may operate a commercial motor vehicle as a personal conveyance, complete with examples of what is appropriate and what is not.  Drivers will have a much easier time articulating to a roadside officer why they used personal conveyance if they have access to this document during an inspection.

You can find the guidance here:

https://www.fmcsa.dot.gov/regulations/hours-service/personal-conveyance

https://www.gpo.gov/fdsys/pkg/FR-2018-06-07/pdf/2018-12256.pdf

3. Remember this: Closest, safe, reasonable

One of the examples in the guidance, and the one that addresses the scenario we cited at the beginning, is this one: “Time spent traveling to a nearby, reasonable, safe location to obtain required rest after loading or unloading.”

“You have to go to the closest, safe, reasonable location to rest,” Seidl says. “What if your residence is 200 miles away and there’s 28 truckstops in between you and there; can you drive home using personal conveyance? No.”

Similarly, he says, that means drivers can’t just drive to their terminal on personal conveyance after loading or unloading, either. The only caveat to that is if your residence and/or terminal happens to be the closest, safe, reasonable place to obtain rest after loading or unloading.

“A good rule of thumb is if you’re trying to convince yourself that it’s not work, then it’s probably work.”

“The federal government now is taking cases galore on people driving to residences when they shouldn’t be or all the way to their terminal, when they should be going to a nearby/reasonable/safe location.”

It also means that if the closest, safe, reasonable place to rest is in the opposite direction of where the driver’s load will be taking him in the morning, that’s where he needs to head – not in the direction that will take him closer to his destination.

“You can’t go to the truckstop 28 minutes in the direction of your next delivery if there’s one 12 minutes away in the opposite direction,” Seidl says. “Conversely, you are allowed to head in the direction of your next shipper and/or receiver as long as that location is the closest, safe and reasonable place to obtain rest.”

What if the nearest truckstop or rest area doesn’t have any parking available? Then you’re allowed to use personal conveyance to travel to the next closest, safe, reasonable parking spot. But Seidl recommends drivers document the fact that the closest place was full.

Use your smartphone, he says, and take time-stamped photographs, panoramas, or video evidence that it is full. Then proceed to the next closest reasonable spot.

Seidl also notes that there’s not a specific distance limit. “If you’re in Alaska and you unload, can you go 68 miles to the closest truckstop? Yes.”

4. There’s a limit to using personal conveyance for ‘commuting’

The most abused and misunderstood portion of the guidance, according to Seidl, is this one: “Commuting between the driver’s terminal and his or her residence, between trailer-drop lots and the driver’s residence, and between work sites and his or her residence.

It’s fine for the driver to use personal conveyance to drive his or her truck home from the terminal or trailer drop lot once they’re off duty, Seidl says, but not from the shipper or receiver to your residence. Seidl says the term “work site” was intended for construction sites, not, for instance, loading and unloading.

“If you are driving to go to a plant or a terminal to be dispatched, that’s work. You can’t drive using personal conveyance to a facility to get loaded.”

The guidance also notes that “in these scenarios, the commuting distance combined with the release from work and start to work times must allow the driver enough time to obtain the required restorative rest as to ensure the driver is not fatigued.” Remember the 2014 crash where a Walmart driver crashed into a limo van and killed comedian James McNair and seriously injured comedian Tracy Morgan? The National Transportation Safety Board determined that although the driver was only on hour 13 of a 14-hour shift, he had driven for 12 hours from his home in Georgia to Delaware to start his route.

5.  There are other uses for personal conveyance

Some of the other times personal conveyance may be allowed, according to the guidance:

• Time spent traveling from a driver’s en route lodging (such as a motel or truck stop) to restaurants and entertainment facilities. There is no specific distance limit on this, which could be construed by some as an oversight in the guidance, Seidl says. “If you’re at a truckstop and want to drive to get more healthy food or to a movie theater, you can.”

• Moving a CMV at the request of a safety official during the driver’s off-duty time. So, if a driver has pulled onto an off-ramp to park and the highway patrol knocks on his door and tells him to move, he can push personal conveyance on the ELD and move to the closest, reasonable, safe location, Seidl says.

• Time spent transporting personal property while off-duty. “This is probably something you want to stay away from,” Seidl says, although he has worked with clients whi have used this exception in a few scenarios.

6: Your company needs to have a personal conveyance policy in place

In order for drivers to use personal conveyance, it must be allowed by the motor carrier they’re driving for: “…only when the driver is relieved from work and all responsibility for performing work by the motor carrier.”

However, the guidance also says that motor carriers can establish limits on its use. “The motor carrier could say in a personal conveyance policy that drivers are relieved from work as long as they are within the following parameters,” Seidl says. “They could say, I don’t want you to leave a truckstop and go to nearby restaurant or entertainment location,” even though that is allowed by the personal conveyance regulations if the carrier has relieved the driver of work and responsibility.

Seidl recommends that carriers do allow drivers to use personal conveyance under certain guidelines.

It would be short-sighted for motor carriers to not allow personal conveyance at all, he says, because they’re risking roadside violations in some scenarios, possibly setting themselves up for a violation of the coercion rule for forcing a driver to break the law – and it’s also a recruiting/retention tool, he says.

“Companies that use personal conveyance to their advantage will retain drivers, because you’re allowing your drivers extra flexibility to get their job done. With the driver shortage, personal conveyance is something you should embrace – but you need to do it properly.”

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RELIANCE PARTNERS NAMES CHIEF SALES OFFICER AND ANNOUNCES NEW LOCATION IN AUSTIN, TX

Chattanooga, Tenn. – November 19, 2018 – Reliance Partners is pleased to announce the addition of Brandon Richards as Chief Sales Officer and growth into the Austin market.  Richards is a veteran insurance professional with more than 17 years in the commercial transportation insurance space. Brandon’s addition also marks the opening of a new Reliance Partners location in Austin, TX where the agency plans to rapidly expand its team adding 50 employees in the next 36 months.

“Its a big win for our team to have Brandon on board,” says Reliance CEO, Andrew Ladebauche. “Brandon’s insurance and fleet risk management experience will be a key driver to our growth as an agency, especially in the Midwest.”

Prior to his insurance career, Richards served in the US Army for 6 years in Texas, Virginia, Kentucky, and Bosnia. He has been married to his wife Kelly for 19 years, and they are both fitness enthusiasts and enjoy travel, great food, and the outdoors. Kelly and him are active members in Cornerstone Church of San Antonio and also involved in several non-profits.

Reliance was recently featured in Inc Magazine as a member of its 5000 Fastest Growing Privately-Held Companies from 2016-2018, Inc. Magazine’s ‘50 Best Workplaces,’ and in Fortune as one of “America’s Best Workplaces.”

Reliance Partners is one of the fastest-growing commercial insurance agencies in the country. The company has locations in Chattanooga, Tenn., Birmingham, AL, Chicago, IL, Austin, TX, Milwaukee, WI, Vero Beach, FL and Victoria, TX with a national client base largely concentrated in the transportation and logistics space, in addition to a fast growing presence in other lines of business insurance. The company was incorporated in 2009 by a group of individuals with a common goal: to be the best agency in the insurance industry.

To learn more, please visit us:

www.reliancepartners.com

LinkedIn: Reliance-Partners

Twitter: @truck_insurance

Facebook: ReliancePartners

Instagram: @ReliancePartners

The post Reliance Partners Names Chief Sales Officer and Location in Austin, TX appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

One service in particular plays a critical role in how insurance underwriters understand the health of your trucking operation, ultimately affecting pricing decisions on your trucking insurance. CAB or Central Analysis Bureau is a website that extracts data from FMCSA and interprets it to show trends, issues and improvement. Everything that happens during the policy term from accidents, inspections, and even your unit count is noted on this page.

Why is this page so important you ask? The service is one of the best tools utilized by underwriters to determine what kind of rate you will get when it comes to insurance premium. They can see if you are staying within your radius you stated, and underwriters can even see the units that are inspected while running under your authority and ALL accidents involving one of your scheduled units is on there as well.

When I say that they can view an inspection, I mean they can see what unit was inspected, where it was, who was driving, and most importantly….the results of the inspection. Your CAB page summed up is a reflection of how you run your trucking company. Do you take pride in following all FMCSA laws and regulations? Are you doing what you say you are doing on your application?

All of this information is crucial when it comes to renewal time. Underwriters essentially want to understand how you are operating your trucking company. This will be the primary basis coupled with losses of understanding the appropriate price to pay for your truck insurance.

Kevin Dupree

423-682-7312

Kevin.dupree@reliancepartners.com

The post The CAB Tells All appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Collaborative Environment

When society pictures a work environment, cubicles, silence and little employee interaction often comes to mind. Reliance Partners however, values community within the office. Our desks are set up where employees can see surrounding coworkers, providing an efficient yet united feel. Reliance strives to provide an enthusiastic and supportive work environment, collaboration being one of the ways Reliance Partners aims to reach this goal.

Contests

Reliance Partners is always up for friendly competition. Frequently, contests are held to motivate our employees to go the extra mile. We have competitions across departments including everything from monthly group contests on sales volume to Chili-Cook offs that benefits local charities. Competitions whether work-related or simply for fun, give employees a chance to connect with the Reliance process in a fun way. Reliance Partners employees drive one another to reach their full potential and competition is a great way to motivate one another- Reliance Partners knows how to have a good time.

Diversity

Reliance Partners has flags that represent each country in the office. It is an advantage to have a diverse group of employees. More than 40% of employees are bi-lingual, and it is a joy to be surrounded by so many nationalities inside our office space. We come to the same office space every day, but learn stories about life in other countries on a daily basis. There is opportunity to gain multi-cultural understanding at work, which may not be true of all companies.

Reliance Partners makes work feel like more than just a job, rather an invested community striving to reach a common goal: to be the best transportation insurance agency in the United States. Be on the look out for more about work life at Reliance Partners. A video will be published soon and we can’t wait for you to gain insight into the daily life at Reliance Partners.

-Anna Rogers

The post What Makes Reliance Partners a Great Place to Work? appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.