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March 15, 2011 9:15 AM, EDT

FMCSA: Carriers May Ignore Cargo Insurance Warning Letters

The Federal Motor Carrier Safety Administration said motor carriers that received notices of investigation for revocation of authority based on cancellation of their cargo insurance policies on or after March 21 “need not respond to such letters if they have a service date of Feb. 19 or after.”

Thousands of carriers recently received erroneous warnings from FMCSA about the possible loss of their operating authority due to the cancellation of cargo insurance policies that the agency no longer requires in most cases.

Agency officials said the cancellation notices “triggered system-generated letters indicating that FMCSA would revoke their authority within 30 days of the service date of the letter.”

But FMCSA said it will “not revoke the operating authority of non-household goods carriers and non-household goods freight forwarders whose cargo insurance expires on or after March 21,” the agency said in a statement released to Transport Topics on Friday.

FMCSA said it was  “taking corrective measures to alert carriers.”