April 12, 2005

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Headline News


Louisiana Funds Driver Training, Program Will Use Simulation Technology

eTrucker.com reported last week that the Louisiana Department of Labor has awarded a two-year, $1.5 million grant to a technical college and a consortium of four Louisiana-based trucking companies to fund a driver training program that uses advanced simulation technology.

Louisiana 's Incumbent Worker Training Program (IWPT), the source of the grant, was created in 1997 by the state Legislature to help Louisiana businesses train their current workers. The program is funded by money left over from the state's workers' compensation fund, said Debbie Burkheiser, dean of workforce development at Louisiana Technical College , the school awarded the grant.

About $1.1 million from the grant allowed the training provider, Louisiana Technical College 's Acadian Campus in Crowley , and the trucking consortium to purchase a new tractor and customized trailer equipped with four state-of-the art driver training simulators. The consortium includes Total Transportation, Dupre Transport, John N. John Truck Line and Milk Products LP (DBA Borden's).

The rest of the grant pays for operating expenses associated with the highly specialized driver safety training program. A full-time instructor from the college, Nick Treadway, will provide training to more than 700 current drivers and new hires of the four trucking companies.

The companies will get the equipment and instructor for one week a month at any facilities they choose. The companies have booked the 18-wheeler for the next two years, Burkheiser said. Treadway and fleet safety supervisors will use the simulators to train drivers in shifting techniques, fuel management, emergency maneuvers, circles of influence, speed and space management and adverse driving conditions.

Dupre Transport, a 360-truck petroleum hauler based in Lafayette , is the first company to have the simulators on its site. So far, the feedback from drivers has been all positive, said Reggie Dupre, chief executive officer.

“Our goal is to become the safest carrier in North America ,” he said. “The simulators will help us do that by coaching drivers along the way.”

William John, director of marketing for John N. John Truck Line, a liquid bulk hauler based in Crowley , said the company will use the simulators to give drivers hands-on lessons in how to react to dangerous situations.

“One way we're employing this is for our drivers that drive in the Northeast to train for ice,” John said. “This will give guys experience of driving on ice without having to roll one over in real life. If we prevent one accident, it is worth it. I don't see any downsides to this.”

In addition to improving driver safety, John said the simulator-based training should enable the company to expand its pool of drivers by training drivers with no tanker experience.

To receive the grant and initiate the driver training program, Louisiana Technical College and some of the consortium members have worked for more than two years, Burkheiser said.

Drivers who complete the training should expect to see a 38 percent reduction in accidents and a 5 percent increase in fuel economy, said John Peters, a regional sales manager for MPRI Ship Analytics of Salt Lake City, provider of the simulators used in the program.

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Bureau of Customs and Border Protection (CBP) Unveils New C-TPAT Requirements

The Bureau of Customs and Border Protection (CBP) announced on their website last week that new criteria for importers who choose to participate in the Customs Trade Partnership Against Terrorism (C-TPAT) program was posted. C-TPAT is an initiative between business and government to protect global commerce from terrorism. The effective date for the new C-TPAT requirements is March 25, 2005, and the requirements will be phased in over a six-month period according to the following schedule:

•  Participating importers have 60 days, until May 26, 2005, to meet the container security, physical security and physical access controls outlined in the new criteria. According to the agency, these elements are designed to provide an immediate “hardening” of the physical supply chain;

•  Within 120 days, or by July 26, 2005, C-TPAT members will be expected to adopt internal or procedural security elements, including personnel security, procedural security, information technology security and the establishment of a security training and threat awareness program; and

•  Importers will have 180 days, or until September 26, 2005, to leverage their corporate strength to push security enhancements back into the supply chain, from point of stuffing to point of arrival and the CBP clearance process.

As mentioned above, these security criteria are effective as of March 25, 2005, and the “phased-in” implementation schedule applies to all C-TPAT importer members. To assist with this implementation the U.S. Customs and Border Protection website: http://www.cbp.gov has the following “linked” documents: C-TPAT Importer Security Criteria; Security Criteria Implementation Plan; Online Importer Application Process; Frequently Asked Questions (FAQs) Regarding Minimum Security Criteria for Importers and a Message from Commissioner Robert Bonner Announcing C-TPAT Importer Security Criteria. Regarding the introduction of this new criteria Commissioner Bonner is quoted in his remarks as saying it is “designed to accomplish two important goals: first to offer flexibility for accommodating the diverse business models represented within the international supply chain; and second, to achieve CBP's twin goals of security and facilitation.”

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“Extremely Hazardous Materials” Legislation Reintroduced, Could Impose Additional Security Requirements

Representative Edward Markey (D-MA) re-introduced legislation in the House of Representatives on March 17 entitled the “Extremely Hazardous Materials Transportation Security Act of 2005.” If enacted, this bill would require the Department of Homeland Security (DHS) to issue regulations imposing additional security requirements for shipments of extremely hazardous materials (HM). The language in the bill defines extremely hazardous materials as materials that are “toxic by inhalation,” “extremely flammable,” “highly explosive,” and any other materials designated by the Secretary of Homeland Security as extremely hazardous. Markey had introduced similar legislation in 2004. The bill Rep. Markey has re-introduced calls on the Secretary of DHS to promulgate regulations which would require:

•  Pre-notification of federal, state and local law enforcement when an extremely hazardous material is transported near an area of concern (i.e., an area that is designated by the Secretary as posing a particular interest to terrorists);

•  A determination by the Secretary of DHS as to whether transportation could be made by alternate route at a lower security risk, except where the origination or destination is located within the area of concern;

•  Use of currently available technologies and systems to ensure immediate communication between transporters and all entities charged with responding to acts of terrorism;

•  Physical security measures (e.g., passive secondary containment of tanker valves, additional security personnel, surveillance technologies and barriers);

•  Creation of terrorism response plans for shipments of extremely hazardous materials;

•  Additional comprehensive training for individuals that transport extremely hazardous materials;

•  Civil penalties of up to $100,000 and administrative penalties of up to $1,000,000 for violation of a regulation issued under this act; and

•  The enactment of whistleblower protections for personnel who report security or safety problems.

On the Senate side, Senator Jon Corzine (D-NJ), and outspoken leader on chemical, rail, and homeland security issues, will soon be introducing a similar bill. If the bill ultimately passes, federal officials would be required to issue regulations for public comment within 180 days. TCA will keep you posted on this issue, and for more information on Rep. Markey's legislation click here (link to www.house.gov/markey ).

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HIGHWAY INFORMATION SHARING AND ANALYSIS CENTER
Advisory: Impersonation of Military Personal to Defraud Truck Drivers

The Highway ISAC has received information from a Highway Watch member concerning an apparent confidence scam to defraud professionals in the trucking community. This scheme involves persons impersonating military personnel from the United States Marine Corp enlisting commercial drivers to transport equipment and weapons to military bases on behalf of the U.S.M.C. These individuals are soliciting a deposit of $800 in cash and an additional $500 to complete the contract. In addition, they will attempt to collect “fines” and threaten a Federal Court Marshal for treason and jail time of up to 15 years in a Naval Penitentiary if you attempt to break this fraudulent contract or pass on information to authorities. Elements of this scam include a supposed contract that involves releasing sensitive personal information such as your social security number, details of the applicant's commercial vehicle, including VIN number and applicant's CDL information. Although this apparently counterfeit “contract” has the United States Marine Corp logo and letterhead, it is an official looking fraudulent document.

In addition to a fraudulent contract, the applicant is issued a document supposedly providing basic information for CDL Weapons Transport Permit for a 48 ft Marine Corps Weapons trailer. Within this document the applicant is instructed on supposed “protocols” of delivering military ordinances. In one paragraph, the applicant is instructed to yell out three times to “United States Government, Stop!” if approached by a suspicious person and to use their own judgment in injuring or killing the suspect. This detail of the scam is particularly disturbing because it advises and advocates the use of violence in the name of the US Government. This is not a military protocol and the applicant may not be protected from prosecution in the event they follow such instruction and cause another person bodily harm.

Please be advised that the military does not solicit commercial drivers in this manner nor would they adhere to such protocols listed within this fraudulent contract for employment. Only contractors or companies certified and vetted through the Department of Defense are eligible for employment to transport military ordinances or any other military equipment. This vetting process includes the requirement that all employees involved with the transport or knowledge of transport of DOD Arms, Ammunition and Explosives (AA&E) must maintain a “SECRET” personnel security clearance granted by the Defense Security Service which can not be acquired by merely providing your social security number and other personal information. It is recommended that any one approached by individuals claiming the authority to issue such clearances educate themselves on the proper process and paperwork requirements by visiting the DSS website at http://www.dss.mil/isec/index.htm .

How to protect yourself from possible fraud :

Please be advised that there are many types of frauds and scams that are aimed at separating you from your money and possibly your identity. When approached by persons promising employment with the Federal Government, the Highway ISAC suggests the following:

•  Be suspicious of any firms or individuals who promise employment for a fee.

•  Be wary of firms promoting "previously undisclosed" federal government jobs. All federal positions are announced to the public.

•  Always check out outside resources to verify the legitimacy of the potential employer. Contact the agency or company directly to inquire about employment opportunities and employment requirements.

•  Never forward, transfer, or "wire" money to a potential employer.

•  Educate yourself on possible scams and frauds and learn to protect yourself by researching available resources such as the Better Business Bureau and the Federal Trade Commission or visit some of these recommended websites:

http://www.fraud.org/tips/internet/jobscams.htm

http://www.bbbnl.org/scams.htm#Scam%20Spotting

http://www.bbb.org/alerts/article.asp?ID=269

http://www.identity-theft-protection.com/index.html

If you have been approached by persons soliciting funds in exchange for employment on behalf of the United States Marine Corp or the United States Navy, please contact the Naval Criminal Investigative Service at 1-703-614-1348. Other possible scams

should be reported to your state's Office of the Governor and the Federal Trade Commission at http://www.ftc.gov (877) FTC-HELP . In addition, if you have already supplied personal information to any one you find may fit the above profile immediately contact the below listed credit reporting agencies to place a fraud alert on your account in case of possible identity theft:

Credit Reporting Agency contact information
Trans Union: 800-888-4213, www.tuc.com
To report fraud: 800-680-7289
TDD- 877-553-7803

Experian: 888-EXPERIAN, www.experian.com
To report fraud: 888-397-3742
TDD- 800-972-0322

Equifax: 800-685-1111, www.equifax.com
To report fraud: 800-525-6285
Hearing impaired: Call 1-800-255-0056 AT&T hearing impaired line. Ask the operator to call the Auto Disclosure Line at 1-800-685-1111 to obtain a copy of your report. To dispute information or report a fraud, call the dispute 800# located on the top of your credit report.

Department of the Army Policy Letter 2002-01: “Personnel Security Clearance Requirements for Commercial Carrier Personnel involved in the Transportation of DOD Arms, Ammunition and Explosives (AA&E) Shipments.”

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Meeting Scheduled for Advisory Committee on National Driver’s Licenses Standards

The DOT, Office of the Secretary (OST) announced in the March 29, Federal Register that an advisory committee has been established to help develop through negotiated rulemaking procedures, recommendations for the development of national standards for driver's licenses. In the Notice, the advisory committee's meeting schedule has been finalized, and will include public comment periods. The makeup of this committee and the schedule for developing the national driver's license standards were mandated from Section 7212 of the Intelligence Reform and Terrorism Prevention Act of 2004, signed into law on December 17, 2004. Section 7212 of that law calls for national driver's license standards, including determining what documents would be required to prove a person's identity; verifying the documents' authenticity; and what information should be required on every driver's license regardless of the issuing state. The industry comment period for the establishment of this committee just closed on March 25, and the American Trucking Associations (ATA) filed comments to be the primary trucking industry committee representative with support from a number of trucking industry groups including TCA, the National Private Truck Council, the Intermodal Motor Carriers Conference and others.

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FMCSA Announces Public Meeting on Cargo Securement Standards

In the April 1, 2005 Federal Register , the Federal Motor Carrier Safety Administration (FMCSA) announced the scheduling of a public meeting concerning the agency's implementation of the North American Standard for Protection Against Shifting and Falling Cargo. The meeting is scheduled on April 21-22 of this year at the Albuquerque Convention Center in Albuquerque , New Mexico . It is open to the public and will be held immediately after the Commercial Vehicle Safety Alliance's (CVSA's) Annual Conference is completed at the same location. The primary purpose of the agency's public meeting is to discuss a process for ensuring consistent interpretation of the harmonized cargo securement standards by FMCSA and the Canadian Provinces , such as interpretation issues raised by U.S. enforcement agencies and motor carriers and potential implementation issues for Canadian Provinces and carriers operating in Canada . The new Canadian securement requirements are expected to be fully implemented by this summer. In the U.S. , the new cargo securement rules became effective on January 1, 2004.

As it relates to cargo securement, the FMCSA notified ATA earlier this year that it had formally granted their June 9, 2004 petition on the agency's cargo securement rules, and would publish a Notice of Proposed Rulemaking (NPRM) -- with no time frame given for publication -- to implement the changes suggested in their petition. T he ATA petition raised the following three specific cargo securement issues:

•  to define normal operation conditions with one consistent set of accelerations (§393.102(a)(1) and (3) of Subpart I);

to delete the requirement for securement devices to be attached inboard of the rub rail on flatbeds (§393.104(f)(4) of Subpart I); and

•  to simplify verbage for securing dressed lumber (§393.118(d)(3)(iv)(B) of Subpart I). T o date, however, the aforementioned NPRM has not been published by the agency in the Federal Register .

A copy of the April 1 Register notice announcing the cargo securement public meeting is available by clicking here for a PDF ( http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-6488.pdf ) and here for an HTML (http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/05-6488.htm). For further questions or comments, contact Rich Clemente at (703) 838-8847 or email: rclemente@truckload.org .

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FMCSA Announces Complete Redesign of Agency Website

Last week, the Federal Motor Carrier Safety Administration (FMCSA) announced that their website: www.fmcsa.dot.gov had been totally redesigned. According to the agency's announcement on the home page, the new site features improved organization, better presentation of content, and a more powerful search engine. Regarding the better organization and presentation of content, the agency reports that usability studies included truck and bus drivers, safety and regulatory experts, association staff, and other core members of the motor carrier industry. Based on this research and feedback, FMCSA designed the website to provide users with quick, “one-click” access to the most sought-after information. New home page links lead directly to hot topics, important information and new content. As for the agency's new search engine, it is now powered by Google. The agency states that it expects users will now spend less time to find more information on the website.

As mentioned above, the new website has the same web address as the old: www.fmcsa.dot.gov .

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FMCSA Financial Reporting for Carriers Ceased

Late last week, the following announcement appeared verbatim on the Federal Motor Carrier Safety Administration's (FMCSAs) website regarding the issue of a motor carrier's reporting of financial and operating statistical data: “ This program has been terminated and FMCSA has ceased the collection and dissemination of motor carrier financial and operating statistics .” The weblink for this statement is as follows: http://www.fmcsa.do.gov/rules-regulation/administration/mcs-info.htm .

To date, nothing on this issue has been formally published in the Federal Register . What information we have been able to gather regarding this development is that apparently Congress did not like the Secretary's decision to transfer the program from the Bureau of Transportation Statistics (BTS) to the FMCSA (see below), so in the last DOT budget the agency was prohibited from spending any '05 appropriations on it. Accordingly, once the FMCSA's '04 funds ran out, they had to shut this program down. It is our understanding now, that the DOT is in the process of developing a Notice of Proposed Rulemaking (NPRM) to exempt all motor carriers of property from this requirement. However, at this time there is no certain date for publication of this NPRM.

By way of background, the now defunct Interstate Commerce Commission (ICC) collected financial and operating statistics from regulated motor carriers from the 1930s until the end of 1995. In November 2002, TCA petitioned the Secretary of Transportation to issue a general exemption from the mandatory financial reporting requirements for all motor carriers. Subsequently, the Office of the Secretary (OST) invited the public to comment on the TCA petition. In October 2003, TCA, as well as several truckload and other motor carriers filed comments in this docket in support of the general exemption, however OST never acted on the petition.

Subsequently, bringing us up to present day, on August 17, 2004, the DOT, OST issued a Final Rule which announced the transfer of the responsibility for the Motor Carrier Financial and Operating Statistics program from the Bureau of Transportation Statistics (BTS) to the FMCSA, which took effect on September 29, 2004. This rule impacted those carriers that are required to file “Form M”, the mandated annual and quarterly financial reports. All class I and class II common and contract carriers must file the Motor Carrier Annual Report Form M, and all class I common carriers of property must file quarterly reports as well. A class I carrier is defined as one having annual carrier operating revenues (both inter and intrastate) of $10 million or more, and a class II carrier having annual carrier operating revenues (both inter and intrastate) of at least $3 million but less than $10 million.

We will keep you posted as further developments warrant. If the aforementioned NPRM is issued to exempt property carriers, TCA intends to file further comments supporting a complete exemption for our industry from these financial reporting requirements. For questions or comments, please contact Rich Clemente at (703) 838-8847 or email: rclemente@truckload.org

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