Brokers Seek Fleet Safety Data to Evaluate Carrier Suitability

This story appears in the May 31 print edition of Transport Topics.

The federal government’s evolving Comprehensive Safety Analysis 2010 program is creating headaches for freight brokers who are trying to protect themselves from potential legal liability by picking safe motor carriers, according to industry officials.

The situation is unfolding as the Federal Motor Carrier Safety Administration makes the transition from the existing SafeStat system, which covers trucking safety compliance, to the more comprehensive CSA 2010 evaluation that begins Nov. 30.

Last month, FMCSA gave carriers their first chance to see safety performance data under the new scoring, which uses seven Behavior Analysis and Safety Improvement Categories, or BASICs. The new approach delivers at least twice as much data as SafeStat, enabling FMCSA to evaluate carrier safety better.

But there’s a catch: Only carriers can see those scores. As of now, brokers and others are barred from viewing any of the new safety data.

“We have raised the driver information issue with FMCSA and have been told that the information is private and to be used by the carrier, not for safety purposes in hiring a carrier,” said Robert Voltmann, president of the Transportation Intermediaries Association, the trade group that represents brokers.

“When we see the inevitable injury accident, we’ll have to see what attorneys and judges do with the CSA 2010 information,” Voltmann said.

The underlying problem is that brokers and shippers with deeper pockets than small carriers have been found negligent in several court cases, such as Schramm vs. Foster, a 2004 case in which a broker was found negligent for hiring a carrier that caused a severe crash.

“If a carrier is operating with a [Department of Transportation] license, on the one hand, I’d love to know I’m using safer carriers and be able to view safety data,” said Jeff Tucker, president of Tucker Company Worldwide brokerage, Cherry Hill, N.J.

On the other hand, Tucker added, he’s “on the fence” about whether he wants to know safety information if a plaintiff can use that information to convince a jury the broker is negligent and responsible for a highway accident.

What brokers don’t know could hurt them, a transport attorney said.

Brokers that fail to obtain carriers’ CSA 2010 scores could be exposed to suits claiming the broker should have known that data, said Tamara Goorevitz, a Baltimore attorney who specializes in representing brokers.

“What is the alternative when people ask ‘Did you even look into this?’ ” she asked. “Due diligence in my mind is to get that current score.”

Goorevitz warned that brokers must be more diligent under CSA 2010 even if they can get access to the data because the scores change monthly, while SafeStat ratings might not have changed for years.

Still another worry is that carriers rated “satisfactory” today will find that because their CSA 2010 score includes new data such as traffic violations, their rating could suffer, Tucker said.

In fact, one industry supplier, Vigillo LLC, which calculates CSA 2010 scores for its clients, found that 68% of the more than 1,500 carriers using its service had at least one BASIC score that would trigger FMCSA intervention.

David Schrader, who is senior vice president of load-board operator TransCore, said the high percentage of carriers with at least one deficient BASIC score will force brokers to decide how much risk tolerance they have.

“Brokers also will have to depend on carriers to make prudent business decisions,” Schrader said, and try to obtain CSA 2010 scores from carriers before they move a load.

FMCSA is encouraging fleets to obtain CSA score information and take appropriate follow-up action if needed.

“We strongly encourage every carrier to seize this opportunity to review their CSA 2010 data profile — and more importantly, to immediately address any deficiencies that may be revealed,” agency spokesman Duane DeBruyne said.

As of May 21, a total of 8,751 carriers had reviewed their safety data, DeBruyne said. The agency’s latest data show approximately 650,000 active trucking companies.

Other brokers are reaching out for solutions as well.

“We are taking this opportunity to reach out to our carriers and discuss CSA 2010 in general, as well as their specific rating, in order to learn more about them and how we can better work with them,” said Kerry Byrne, executive vice president of Total Quality Logistics.

“We’re also currently looking at third-party sources that may be able to provide additional data,” Byrne said. “We won’t make any final decisions on internal changes until we are confident that we have seen the final version of the regulations and determined the practical application of them.”

“We are currently in the pro-cess of determining what C.H. Robinson’s [carrier selection] criteria will be,” said Mark Walker, the broker’s senior vice president, transportation.

“Since all carriers will receive a rating in the new system, we anticipate that carriers currently in the ‘unrated’ pool will need to be especially aware of how CSA 2010 may impact them,” Walker said.

The “unrated” pool is a reference to carriers that don’t have a SafeStat rating.

“Responsible risk managers for brokers and shippers want to see compliance with the regulations and improvement in scores and ratings,” Tucker said.