Tag Archive for: trucking industry
Insurance premiums going up? Infinit-I client Logistics Warehouse used three simple steps to flatline their insurance rates. It CAN be done!
The Truck Driver Shortage Has Made the News
The truck driver shortage has been at the top of the list for industry concerns the last five years in a row. The shortage was originally reported by the American Trucking Association (ATA) back in 2005 though.
This shortage has officially made the news finally. People have started to take notice of the supply chain disruptions and industry struggles as they see empty shelves and backed up cargo. Between a retiring workforce, COVID issues, difficulties recruiting younger drivers, and many other problems, the shortage of drivers continues to increase.
Recent FMCSA Regulations Add to the Driver Shortage
FMCSA regulations regarding drug and alcohol testing have added to the truck driver shortage over the past year. Since January of 2020, more than 72,000 truck drivers were pulled from the road for failing drug tests required by the Drug & Alcohol Clearinghouse.
56% of these failed drug tests were due to marijuana use. The top three after this are Amphetamines at 18%, Cocaine at 15%, and Opioids at 4%. As there is no way to distinguish when the drug use has occurred with these tests, drivers are being forced off the road for driving under the influence.
The rising popularity of CBD oil is also a concern. The DOT has put out warnings about using these oils as they can negatively affect a drug test.
What Does This Mean for the Supply Chain?
With 72,000 drivers out of service, and difficulty recruiting new drivers, we are looking at continued and possibly increased supply chain disruptions. There are already stories in the news about supply chain backups.
With limited drivers to pick up cargo, America will continue to see empty shelves and delayed deliveries of goods. Older truckers are starting to retire as well due to other issues, and the cargo will continue to sit at distribution centers.
What Does This Mean for the Trucking Industry?
The FMCSA does have the option for drivers to complete a return to duty program for those who end up on the drug and alcohol registry, so they can fix their records. Very few drivers have taken advantage of this program though.
Of the 72,000 drivers removed from the road, only 17,000 have completed the program. The rest show no signs of completing this and are leaving the trucking industry for good.
While it is good to get people off the road who are putting others in danger, this loss with little recruitment ability is hitting the trucking industry hard. Trucking companies are competing heavily for new recruits, driving up costs and leaving many companies with very limited resources.
Trucking companies will need to find ways to recruit new drivers if the driver shortage is going to end. Some recruitment options have been put forth, but it will take time to see if these methods will bring results.
Preparing Drivers to Meet FMCSA Regulations
While the industry scrambles to recruit new drivers, there is still a need to make sure the drivers you already have are prepared to meet FMCSA regulations, so you don’t lose any drivers to regulatory issues. This means you should make sure your drivers are getting regular training to stay safety conscious.
Infinit-I Workforce Solutions provides an online training program that allows you to easily assign and drivers to easily access training. Drivers can complete training from any device with an internet connection, so there’s no need to disrupt supply movement further.
Join us for a free 2-day Safety Management Boot Camp in Dallas, TX to see how Infinit-I can help you get the most out of your training program.
The Impact of Smaller Accident Settlements and Verdicts on the Trucking Industry
A lot of time is spent discussing the effect of nuclear verdicts, or verdicts over $10 million, but trucking accident settlements and verdicts under $1 million also have a negative effect on the trucking industry.
Between the danger of increased litigation with the smaller payouts, the rise of insurance rates, and the increased scrutiny on the trucking industry, these smaller verdicts put strain on trucking companies. You need to learn how to protect yourself and your drivers from all litigation issues.
Why are Settlements and Verdicts on the Rise?
The increase in accident settlements and verdicts under $1 million has a lot to do with negative public perception of the trucking industry and tighter restrictions against the industry. The public perception is that carriers are large corporations that don’t care about people.
Plaintiff attorneys have taken advantage of this belief to cooperate on an easy target for litigation. Law firms that focus on the trucking industry have set up structures to go after as many companies as they can. Many will go out of their way to solicit accident victims to file a claim with their firm.
With this structure, some firms can have 300 cases against trucking companies open at a time. These firms often seek for settlements rather than going to court as this gives them a quicker payout. These firms go after minor accidents, but the payout is usually five times the true cost of the accident to the victim.
Litigation financing has also played a part in the increase of settlements and verdicts. Third parties will provide the money needed to pursue a case and take a share of any payment received as payback for the financing. This can also involve a third party purchasing a plaintiff’s medical bills in exchange for part of the settlement.
This third-party financing has also contributed to an increase in fraudulent claims, which adds to the increase in litigation against the trucking industry. These issues trickle down into other areas and have led to increases in insurance costs on top of these other costs.
Highest Payouts
The American Transportation Research Institute (ATRI) recently did a study on the impact of accident settlements and verdicts under $1 million for the trucking industry, and found that certain issues lead to bigger payments for plaintiffs.
The research showed the top 5 causes of accidents that led to the highest average payouts under $1 million were:
- Poor driver history ($680,333)
- Phone use ($629,375)
- Hours of Service violations ($564, 531)
- Falling asleep at the wheel ($543,343)
- Equipment failure ($503,641)
Poor driver history is connected to poor hiring practices and inadequate training which leads to juries holding a carrier at fault for a driver’s mistakes on the road, which means bigger payouts. Driver history and reckless driving issues are a good indication of the average payment that can be expected.
The state where the accident occurs will also play a part in the payment size. California, Michigan, New Jersey, and North Carolina have the largest national averages.
Fatalities and severe injuries also increase payment sizes. In these cases, the payment was more likely to be over $600,000. This could have something to do with the fact that these cases are more likely to be settled out of court.
A carrier is likely to pay more if they settle rather than going to court. Settlements tend to be 37.7% larger than verdict sizes.
How Can You Protect Against Smaller Verdicts?
When it comes to these smaller accident settlements and verdicts, your best defense is a verifiable safety training record. A good place to start is with the top 5 issues that lead to increased payments (poor driver history, phone use, HOS violations, falling asleep at the wheel, and equipment failure).
When you look at poor driver history, you’re likely to find some common issues arising that you can focus training on. Deal with breaking these bad habits. If you can’t, it may be time to get rid of a driver before they cost you more in a lawsuit or settlement.
You also want to deal with any reckless driving issues. Reckless driving is any driving behaviors that disregard the safety of other people or property. This can include texting while driving, driving under the influence, failing to yield, etc.
The best thing you can do for your company is to set up a driver onboarding and ongoing training program to ensure safe driving behaviors. You can supplement these programs with corrective action training if an issue arrives to remind drivers of appropriate behaviors.
Many experts recommend at minimum developing a “Defensible Driver” program that covers entry-level maintenance, remedial driver training, corporate safety processes, safety technology plans, and consistent hiring and onboarding procedures. All these areas are discoverable during litigation, so you want to maintain proper documentation in each area.
Get the Tools You Need to Defend Yourself and Your Drivers
Don’t let truck accident settlements and verdicts under $1 million drown you in costs. Put the tools in place now that will help you defend your company and your drivers before you ever go to court. Infinit-I Workforce Solutions is an online training management system that will allow you to set up onboarding, ongoing, and corrective action training that will prove your safety record.
Would you like to see it in action? Contact us to set up a free demo. Learn how you can set, track, and document all your safety training efforts in one place.
Texas-Based Company creates COMPLIMENTARY “Driving in Winter Weather” Training Course in honor of fatalities in recent crashes.
Infinit-I Workforce Solutions takes steps to prevent future winter weather-related crash fatalities.
February 18, 2021
Dallas, TX – Infinit-I Workforce Solutions, the leader in on-demand business education for safety training anytime, anywhere, announces support for professional drivers in honor of recent winter weather-related crash fatalities across the nation.
“We witnessed a tragedy in DFW. I sat silently with my team as we watched emergency responders clear the twisted wreckage from an interstate that my employees travel daily. It was at that moment I knew I had to act.
In honor of every soul involved in that crash, and so many others happening across the country in the wake of this unprecedented weather, we have compiled a custom training package, specifically designed to prepare truck drivers for winter weather conditions.
Our mission is to prevent these events in the future, and we are determined to save lives. We believe that in reaching the entire trucking industry, we can achieve the most good. So, this package is now available at no cost, for immediate deployment, to every trucking company, owner operator, passenger transportation company, and medium-duty fleet, big or small.”
Jay Wommack, CEO
Infinit-I Workforce Solutions
Texarkana, TX
The unprecedented winter storms halted business, stopped trucks, and caused thousands of vehicle crashes in the South. In response, Infinit-I Workforce Solutions offers a complimentary training course that better prepares professional drivers for winter weather conditions.
“This winter storm brought temperatures, snow, and ice like we have never experienced. In hindsight, it’s human nature to give advice on what we should have done to reduce the number of traffic accidents and fatalities that have taken place in the southern states.
We are turning hindsight into foresight as our contribution to the safety of all professional and commuter drivers. This course will bring awareness to all who participate and better prepare us for future catastrophic events.”
Lindsay Presley, Industry Marketer
Infinit-I Workforce Solutions
Texarkana, TX
Read more on FREIGHTWAVES:
https://www.freightwaves.com/news/transportation-training-company-offers-free-course-after-deadly-storms
For more information about this offer, visit Infinit-I Workforce Solutions.
About Infinit-I Workforce Solutions
Infinit-I Workforce Solutions is the industry leader in on-demand business education for safety training anytime, anywhere. With more than 1,000 expert videos, our training platform reduces accidents, violations, employee turnover, and training costs to make your business more profitable and litigation-proof for the long-haul. You will be in good company as our solutions are used by more than 1,500 clients across 300,000 users across Trucking (For Hire and Private Fleets), Student Transportation (School Systems and Private Bussing), and Warehouse Management. For more information about Infinit-I Workforce Solutions, visit www.infinitiworkforce.com.