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 Industry
Background
A big part of this business has to do with the ever
changing landscape of regulations, laws, and treaties. Because of the
changing regulations in the past it has been difficult for different companies
to comply with the regulations set fort by the government.
Here is a little history of how we got to where we are
today.
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Motor Carrier Safety
Improvement Act of 1999 became law in October of that year. Because of the
complexities and dramatic changes involved, implementation was delayed until
late 2001
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Fallowing implementation,
U.S. DOT moved to hire and train additional safety investigators and vehicle
inspectors. Then, around October 2002, the U.S. DOT hammer finally fell.
Instead of fines of between $500 and $2000, the U.S. DOT/ Federal Motor
Carrier Safety Administration began handing out fines from $2000 and
$10,000(and higher), just form a single compliance review. Hazardous
materials fines are more. There is also a "3 Strike Law" that allows third
time offenders to be fined at the statutory limits ($100,000)
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In the past trucking
companies and passengers carriers receiving an unsatisfactory U.S. DOT
safety rating were allowed to continue operations. Now, they have a maximum
of 60-days to imporve(45-day for hazardous materials and passenger carriers)
If they do not improve, U.S. DOT will place them out of service. In the
past, trucking companies and passenger career is not paying their fines were
allow to continue operations. Now those not paying, negotiation, or
appealing there fines within 90 days of the issuance of the notice of claim,
will receive an out of service order. Over 1,200 such orders have been
issues by U.S. DOT during the past 24 months.
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Previously, the majority of
trucking companies and passenger carriers operating in the U.S. believed
that fines and penalties were just past of the cost of doing business. Now,
they understand that this is no longer the case. Unfortunately, there are
less that 100 professionals level motor carrier safety consulting firms in
the U.S. and over 400,000 trucking companies and passenger carriers needing
help.
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Historically, few companies
have taken advantage of U.S. DOT's appeals process. Now, due to the
substantial number of enforcement actions being taken at the highest dollar
amount, U.S. DOT is being inundated with request for negotiated settlements
and hearings.
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In January 2002, President
Bush signed into law the next stage of NAFTA (allowing Mexican companies to
operate being the borders zones). However, implementation has been delayed
for legal and political reason. Once implemented, the demand for
professional motor carrier consulting services will increase even more.
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