Friday, September 14, 2012

Trucking companies say U.S. safety standard ratings unfair

A safety system designed by the U.S. Transportation Department is weighted unfairly to blame trucking and bus companies for crashes that are beyond their control, according to testimony at a recent House Transportation and Infrastructure subcommittee.

Scores issued by the Federal Motor Carrier Safety Administration are hurting the reputation of companies with strong operating histories, lawmakers reported, since many brokers and shipping companies are less likely to do business with firms that receive low scores.

"While the old adage of 'garbage in, garbage out' does not completely apply here, there are questions about the reliability and integrity of the data," Representative Nick Rahall of West Virginia said at the hearing.

The American Trucking Association has asked that the Compliance, Safety and Accountability system, which has targeted unsafe companies for inspection since 2004, be altered in terms of what data is included.

"FMCSA must acknowledge that the system does not accurately and reliably identify unsafe carriers," said Scott Mugno, vice president of safety for FedEx Ground Package System. The agency "should be to focus on the least safe carriers, not merely those carriers that have compliance problems," he said.

A study by Wells Fargo Securities said there was no link between a carrier's scores and actual accidents. Wells Fargo advised shipping companies, brokers and insurers, that FMCSA safety scores were unreliable, and that potential lawsuits might ensue if the scores were used.

FMCSA administrator Anne Ferro said carriers with the worst scores have twice the crash rates as the average company, and the University of Michigan Transportation Research Institute validated the ratings and methodology. She said an agency-industry task force has been formed to evaluate suggested alterations of the ratings system.

For more of the Bloomberg story: bloomberg.com

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