DOT sets tougher motor carrier entry standards
Staff -- Logistics Management, 6/1/2002
The days of easy entry into the motor carrier business may soon be over. The U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) has issued an interim final rule setting stricter minimum requirements for all motor carriers that are entering the U.S. market for the first time.
The rules, which apply to all new U.S.-based and Canadian carriers seeking to operate in the United States, are designed to harmonize entry requirements for motor carriers from all three countries covered by the North American Free Trade Agreement (NAFTA). The new rules, therefore, are similar to a regulation issued in March that governs Mexican carriers that want to operate in the United States.
The standard requires that all new motor carriers demonstrate knowledge of U.S. safety regulations. New carriers must certify to federal authorities that they are complying with requirements covering driver qualifications, hours of service, controlled substance and alcohol testing, vehicle condition, accident monitoring and hazardous materials transportation. They also must undergo an on-site safety audit within 18 months after beginning operations in order to receive permanent operating authority. Those audits will include a review of the carrier's safety data and an interview with motor carrier personnel. Carriers that fail to demonstrate basic safety management controls during the 18-month trial period could be denied permanent operating authority.
Critics of the new rules, such as the Owner-Operator Independent Drivers Association (OOIDA), say the regulations aren't tough enough and won't adequately address safety concerns. "Other than looking at paperwork, there is no oversight now of who has operating authority," says Todd Spencer, the group's executive vice president. "If federal enforcement catches a carrier violating the rules, [the carrier] will close its doors and reopen. Revocation of operating authority has never been a deterrent for those who don't comply with regulations, and it won't be [in the future]."
The FMCSA will offer educational and technical assistance to new carriers working their way through the application and approval process. The federal government expects to handle 40,000 new carrier applications annually.
The final rule is expected to take effect on Jan. 1, 2003. Written comments on the rule should be sent by June 30 to the USDOT Docket Facility, Attn: Docket No. FMCSA-2001-11061, Room PL-401, 400 Seventh St., S.W., Washington, DC 20590-0001, or sent via fax to (202) 493-2251. Comments can also be submitted electronically at http://dmses.dot.gov/submit.
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