Transportation Risk
Management in Modern Times
Michael Nischan, CDS, CCSP
Risk Control & Safety Consultant
Those Crazy Drivers…
1. Travel in the left lane when driving slower than everyone else.
2. Travel in the HOV lane – without any passengers.
3. When approaching a red traffic signal, speed up to go through
it so the four cars behind can also make it.
4. To save time, eat breakfast, shave, or apply make up while
driving.
5. Turn signals are options not installed on most vehicles… so why
bother using them?
Glad you got here safely!
Agenda
1. How to Manage the Risk
2. Hot Topics - Fatigue, Maintenance, Distractions
3. Post Crash Response
Motor Vehicle Crashes
• Leading cause of
accidental death
• Primary causes
– Distractions
– Violations
– Lack of training
– Poor management
oversight!
Cost of Crashes
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Loss of life
Business interruption
Potential loss of business
Equipment replacement costs
Increased insurance premiums
Bad safety ratings
Costs of litigation
Costs are passed onto consumers.
July 11, 2012 Double-fatality Thornton Road @ I-20
Witnesses said truck driver ran red light
Legal Perspective
• Penalties, increased insurance costs,
criminal liability, and civil liability.
• Motor vehicle operators must exercise
“reasonable care under the
circumstances.”
• Failure to exercise reasonable care is
called “negligence.”
• Negligence results in punitive damages
that may not be covered by
insurance.
• Even if you do not cause a crash,
because you are driving a business
vehicle, people think the company has
deep pockets, so they’ll sue.
This affects your bottom line!
How to Manage the Risk
• Accountable person for
transportation compliance
and safety.
• Utilize a written
management program.
• Communicate policies to
drivers.
• Utilize a training program
(new-hire and ongoing)
• Management
• Drivers
Transportation Management Program
Table Of Contents (highlights):
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General operations
Driver hiring, training, annual review
Alcohol and drugs
Distracted driving policy
Weather precautions
Night driving
Post-incident procedures
Maintenance
driver vehicle inspections, annual vehicle inspections
Fatigue
hours of service
Vehicle idling policy
Load securement
Security – cargo and equipment theft is a big problem!
Compliance reviews
Hiring Requirements
• A solid transportation safety program begins with driver
selection.
• Your profitability is in the hands of people who drive on behalf
of your business, regardless of who owns, leases, or rents
vehicles (employer vs. employee).
• Includes:
• Sales personnel
• Maintenance technician
• Anyone getting reimbursed for mileage
• Drivers of CMV’s (commercial motor vehicles)
• Avoid negligent hiring, entrustment, retention!
Driver History
Employers need standards in place:
• Pre-Employment
– Background check
– Physical / drug test
– MVR (Motor Vehicle Record)
– Pre Screening Program CMV drivers
• Annually
– MVR (Motor Vehicle Record)
– Background check if position warrants
– Random drug test if policy
• What does loss history indicate?
What is a CMV?
§390.5 Definition
A commercial motor vehicle (CMV) is any self-propelled or
towed motor vehicle used on a highway in interstate commerce
to transport passengers or property when the vehicle:
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Has a gross vehicle weight rating (GVWR), gross
combination weight rating (GCWR), or gross vehicle
weight or gross combination weight of 10,001
pounds (4,536 kg) or more, whichever is greater; or
Is designed or used to transport more than 8 passengers
(including driver) for compensation
Is designed or used to transport more than 15 passengers
(including driver) without compensation
Is transporting hazardous materials in quantities requiring
the vehicle to be placarded.
A pickup truck towing a trailer may be a CMV.
Federal Motor Carrier Safety Regulations
Common regulatory parts are listed below (not all-inclusive)
Preservation of Records
Special Training Requirements
Controlled Substances & Alcohol Use & Testing
CDL Standards; Requirements and Penalties
Safety Fitness Procedures
Minimum Levels of Financial Responsibility
Federal Motor Carrier Safety Regulations, General
Qualifications of Drivers
Driving of Motor Vehicles
Parts & Accessories Necessary for Safe Operation
Hours of Service of Drivers
Inspection, Repair, and Maintenance
Hazardous Materials; Driving and Parking Rules
Employee Safety and Health Standards
Federal Motor Vehicle Safety Standards
49§CFR 379
49§CFR 380
49§CFR 382
49§CFR 383
49§CFR 385
49§CFR 387
49§CFR 390
49§CFR 391
49§CFR 392
49§CFR 393
49§CFR 395
49§CFR 396
49§CFR 397
49§CFR 399
49§CFR 571
CMV Drivers - Hiring Requirements
A necessary evil – paperwork and more paperwork
– This helps to ensure that you hire a qualified driver.
– Your profitability is in the hands of people who drive your
vehicles… they hold the keys to your company.
– The only way to ensure that you hire the RIGHT driver is to
complete this paperwork.
• §391 Qualifications of Drivers
• §382 Controlled Substance & Alcohol Use & Testing
Best Practices - Training
• Provide new drivers with a handbook to clarify your
expectations and company policies.
• Provide new driver training – don’t expect that they know it
all... even if they think they do!
• Provide frequent training as a proactive measure and to address
incidents.
• Utilize evaluations to grade drivers and provide feedback.
• Constantly work towards improvements.
• Remember that location managers need training too.
Training is an investment, not an expense!
Driver Training Program
Online, interactive, instructor-led:
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Distractions
Cargo Securement
Warm Weather Driving
Fatigue
Hours Of Service
Maintenance
Adverse Driving Conditions
Alcohol and Drugs
Following Too Closely
City Driving
Driver Vehicle Inspections
Night Driving
Security
Have regular driver training sessions!
Hot Topics:
Fatigue, Maintenance, Distractions
Drowsy Driving Crashes
• 100,000 crashes reported annually,
~1 million crashes linked to
inattention due to fatigue.
• 28% professional drivers suffer from
sleep apnea (wellness issue).
• In three seconds of micro sleep at
60mph a vehicle has traveled 265
feet without anyone at the wheel.
• Most crashes occur midnight – 6:00
& in the midafternoon (circadian
dip).
• Vehicle drifts off road and hits
stationary object; rear-end or headon collisions, no evidence of braking
or evasive maneuvers.
National Sleep Foundation
Hours Of Service Of Drivers
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§395
Property Carriers
§395.3
Passenger Carriers
§395.5
On-Duty Time
14 hours
15 hours
Off-Duty Time
10 hours
8 hours
Maximum Driving Time
11 hours
10 hours
Maximum On-Duty Time
in any 7-Day Period
60 hours
60 hours
Maximum On-Duty Time
in any 8-Day Period
70 hours
70 hours
Property-carrying CMV drivers using the sleeper berth provision must take at least 8
consecutive hours in the sleeper berth, plus 2 consecutive hours either in the sleeper berth,
off duty, or any combination of the two.
Passenger-carrying CMV drivers using the sleeper berth provision must take at least 8
hours in the sleeper berth, and may split the sleeper-berth time into two periods provided
neither is less than 2 hours.
Recordkeeping required (RODS, timecards, supporting documents)
Fatigue Management
• Comply with Hours Of Service
regulations / best practices.
• Be sure drivers are not fatigued.
• Do drivers have a second job
– whether driving or not?
• Do you interact with them
enough daily to determine
their state of alertness?
• Any complaints about nearcrashes, inattention, or
fatigue?
• Manage this process before it
results in a serious crash!
Inspection, Repair, and Maintenance §396
Benefits of a good maintenance program:
• Prevent vehicle breakdowns.
• Prevent hazardous conditions that may
result in crashes.
• Deliver goods in timely fashion without
delay.
• Attain optimum vehicle component life.
• Predict operating costs more
effectively.
Driver’s Vehicle Inspection Report
Inspection Elements
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Service brakes
Parking brake
Steering mechanism
Lighting devices and reflectors
Tires
Horn
Windshield wipers
Rearview mirrors
Coupling devices
Wheels and rims
Emergency equipment
•Retain for Three Months
•Pre-Trip Inspections Required
•Annual Inspections
Annual Roadside Inspection Events
•Road Check
– June (first Tuesday – Thursday)
– 70,000 inspections by
8,500 inspectors
•Brake Safety Week
– September (second week)
– 20,000 inspections, educational
outreach
•Operation Safe Driver
– October (third week)
– CMV and non-CMV traffic
enforcement
– Target aggressive CMV and nonCMV drivers
– Increase awareness to public
about safe operations
around CMV’s
Are Distractions Really a Problem?
Yes!
Slower reaction times
caused by cell phone use
are comparable to that of
a .08 BAC driver!
80% of all crashes and
65% of near-collisions
occur within three
seconds of a driver
distraction.
Four Types of Distractions
1.
Manual - involves touching something - dialing phone,
changing radio stations, grooming.
2.
Visual - involves looking at something.
3.
Auditory - involves listening to something –
conversation or music.
4.
Cognitive - involves thinking about something.
No difference in interference from a hands-free or handheld
conversation.
Cell Phone Use While Driving
• Use of hand-held cellular phone by
CMV drivers prohibited; hands-free
use permitted but not encouraged.
• Texting while driving is never safe!
• Variations of laws for auto drivers
among states, with varying penalties.
• Penalties for texting or violation of
hands-free rule:
CMV Drivers subject to civil or
criminal penalties up to $2,750
and companies may be fined up
to $11,000.
All states must adopt this rule by
01/03/2015 for intrastate purposes.
Post Crash Response
Post-Crash Reporting
• Drivers must be trained to report
ALL crashes / incidents to
management IMMEDIATELY.
• Utilize Glove Box Accident Kits
with cameras.
• Know who to call before the
crash - reconstruction expert and
knowledgeable attorney.
• Investigate all incidents for root
cause and contributing factors.
Global
Positioning
System
(GPS)
Documentation
Who/What/Where/When/How
• Who was involved?
• What happened?
• Where and when did it happen?
• How did it happen?
• Environmental / weather conditions?
• Road conditions?
• License plate numbers?
• Other important details?
Photographs as Evidence
• Disposable or digital cameras – great tool.
• Shoot all available pictures at crash scene.
• Photograph all damaged areas and
undamaged areas of all vehicles.
• Photograph the license plate of all vehicles
close enough to read the plate and identify
which vehicle it was on.
• Photograph interior of the vehicles including
the dash area and driving compartment, all
safety equipment such as seat belts,
steering wheel, pedals, and air bags.
Spoliation of Evidence
• When involved in a serious injury or fatality, ensure that
documentation and evidence is not altered or destroyed (including
ECM data).
• Contact your insurance carrier and attorney to discuss evidence
preservation so that you do not find yourself accused of spoliation of
evidence… which includes not having equipment repaired.
• Maintain excellent recordkeeping, limit access and involvement to
those who have a need to know, and secure all information
accordingly.
• Although the regulations permit you to discard DVIR's after 3 months
and RODS & supporting documents (including GPS) after 6 months,
you must keep crash-related documents.
Annual Trucking Litigation Seminar
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The McCart Group, the law firm of
Freeman Mathis & Gary, and Impact
Collision Analysis present a one-day
seminar about investigating and
defending the Commercial Motor Vehicle
accident case.
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Present compliance elements,
investigation protocol, and defense
details.
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Mock truck crash investigation with
Georgia State Patrol Specialized Collision
Reconstruction Team and Georgia Motor
Carrier Compliance Division.
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Followed by mock trial and Q & A.
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Only seminar of its kind in Georgia.
The only thing that is for certain is change…
Enforcement initiative.
Signed into law July 6, 2012 – 31 provisions
highway & motor carrier safety.
Cargo & equipment theft - costliest crime in
America; costs exceeding all burglaries, robberies,
cyber thefts, and identity thefts combined.
Georgia #5 in nation.
What’s the Risk?
The world’s most solitary tree
stood for nearly 50 years in the
Sahara Desert. There was no
other standing tree within 250
miles.
It was knocked down by a drunk
truck driver in 1973.
What You Learned Today
1. How to Manage the Risk
2. Hot Topics - Fatigue, Maintenance, Distractions
3. Post Crash Response
The rewards for excellence are too great to
waste time doing anything "half-right."
Michael Nischan, CDS, CCSP
NATMI Instructor
E-mail: michael.nischan@mccart.com
Phone: 678.938.2012
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