In What Way Will CSA Data Be Used?

December last year was the month the next stage of the Federal Motor Carrier Safety Administration's (FMCSA) new CSA 2010 enforcement program went live. It made carrier safety information accessible to the public. This was after federal appeals court turned its thumb down to a suit by a number of small trucking companies' groups to obstruct the release of the data. The carriers were worried that their CSA BASICs data don't acceptably show their safety performance and that releasing of the data to the public would put them at a competitive difficulty.

Here's what worries the industry. Considering driver violations and collisions now more directly affect a carrier's safety rating, freight companies will stiffen standards, and some drivers in all likelihood be forced out of the trucking business entirely, no freight companies would hire them due to their CSA scores.

"I've witnessed a few larger firms that have put recruiting minimums in place that are more strict and set to take effect Q1. That says a lot right there," noted a former driver recruiter and carrier consultant for J.B. Hunt. He wonders, on the other hand, about what insurance companies will do with the information. "I get the feeling insurance companies will leverage a lot more involved role in hiring." However, he argues, probably companies might get insurance breaks for raising the bar on hiring standards accordant to CSA.

A group member, who is connected with a truck driver training school as well as an industry expert, revealed that they already had received a call from a driver who found himself undesirable in the industry as a result of his personal CSA scores.

In spite of that, it also works the other way. The good drivers will be sought after by freight companies more.

"I personally wonder how many drivers will be telling their company to stuff it when the company requires them to drive junk and run illegally," added the truck driver training/consultant. "Lots of companies appear to do just that! Once the drivers figure out how the new CSA program will affect their ability to get a job, I expect more companies to start whining about driver retention. My opinion has always been: treat drivers fairly, pay them well and give them decent equipment and they won't leave."

Looking back at the lawsuit, there is doubtlessly some reported attestation that some shippers are going to be observing closely the CSA scores of freight companies when choosing who to engage business with.

A major freight company's national account manager at their logistics arm noted that during the pre-CSA safety system, SAFER, has been utilized for a long time. "Some of our customers require that we use 'satisfactory' carriers only. I am still waiting to see what our compliance team is going to come up with as far as our own internal standard. I read a blog yesterday on Logistics Management website stating that shippers may be liable for accidents involving their freight if they hire questionable carriers. I would think that this would motivate everyone to investigate their carrier pool and ensure that they use the 'quality' safe carriers. It should bring a premium rate for the best carriers out there."

The transportation management software of a supply chain management consulting 3PL/software firm has been boosted to scan for undesirable carrier scores. According the their president, "We were very relieved that all of the motor carriers we use in our managed transportation division had great scores. Our concern now is the impact on market capacity, no doubt, it will have an impact!"

And according to a broker's report, they have seen change. They used the government measures for hiring carriers and a lot of these carriers wasn't able to comply with the current standards. It is stated that they have to cover some lanes 2-3 times to guarantee that safe carriers are utilized on the loads. Their work load has doubled and the broker anticipate two things will occur that will immediately affect brokers. Smaller unsafe freight carriers shutting their businesses down and bigger freight companies' line haul rates going up. And he continued that building strong and mutually beneficial relationships with safe freight carriers will be integral going forward.