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For The Defense, December 2011 - DRI Today

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FMSCa evaluation, from page 77 Smith v. N. Dewatering, Inc., 2004 U.S. Dist. tions, motor carriers must proactively seek<br />

loading and sealing the cargo, especially Lexis 2648, at *6 (D. Minn. Feb. 19, 2004). the ability to inspect, verify, and potentially<br />

when a motor carrier will haul a hazard- However, despite this, in many cases a even load the cargo that they will ship.<br />

ous material. Also, contracts often prohibit shipper is the entity that loads and secures<br />

a motor carrier’s employees and drivers the cargo, leaving the motor carrier to take Conclusion<br />

from breaking the cargo seal. However, the the majority of blame for any related negli- In conclusion, the CSA program involves<br />

CSA methodology still holds the motor cargence. Law enforcement may break a cargo comprehensive data gathering and measurrier<br />

accountable for load securement viola- seal to inspect it, and if an officer finds ing methodology to evaluate and rate each<br />

tions or anything else that the shipper did violations, a motor carrier’s BASIC score individual motor carrier based on its per-<br />

incorrectly.<br />

may increase due to the shipper’s failure. formance in many different fields of safety<br />

Federal regulations “place the burden of And in cases involving hazardous material compared with relevant peers. However, it<br />

load securement upon the carrier. See 49 releases, the potential for punitive damages will make more data available to the public<br />

C.F.R. §§390–393 (2002). <strong>The</strong>se regulations may be high.<br />

and to plaintiffs’ attorneys than in the past,<br />

require carriers to inspect whether cargo Dr. Gillette believes that in the future so motor carriers must proactively monitor<br />

is properly distributed and adequately many motor carriers may seek contractual their own safety status, immediately inves-<br />

secured both before driving a truck and requirements permitting their drivers to tigating violations and crashes and taking<br />

during transport. (See 49 C.F.R. §392.9(b); physically inspect cargo before agreeing to corrective action. Properly investigating<br />

Smart v. Am. Welding & Tank Co., 149 N.H. transport loads, or they many seek adden- and responding to safety concerns, will<br />

536, 826 A.2d 570, 573–74 (N.H. 2003)). dums to contracts to protect themselves. permit motor carriers to combat attempts<br />

Thus, under federal law, responsibility for Since federal law holds motor carriers to use the tools and conclusion of the CSA<br />

improper loading generally rests with the responsible for load- securement shipper against them in litigation.<br />

carrier, even if the shipper loads the cargo.” negligence and other cargo- related viola-<br />

Mexico, from page 65<br />

ipated in the 2007–2009 Demonstration<br />

Project are to be exempt from<br />

payment of the application fee.<br />

2. All Mexican- domiciled motor carriers<br />

that wish to participate in<br />

international freight cross- border<br />

trucking services in the U.S. are to<br />

undergo a Pre- Authorization Safety<br />

Audit (PASA) performed by FMCSA,<br />

in accordance with Title 49 of the<br />

U.S. Code of Federal Regulations<br />

(CFR), Part 365, as may be amended.<br />

<strong>The</strong> PASA will include the following,<br />

in addition to any other requirements<br />

set out in the Federal Motor<br />

Carrier Safety Regulations (FMC-<br />

SRs): …<br />

Id. at Annex 1.<br />

Annex 1 continues in some depth, establishing<br />

driver national security and criminal<br />

background checks, exclusion criteria<br />

set forth by the U.S. Customs and Border<br />

Protection of the U.S. Department<br />

of Homeland Security, communication<br />

between the parties’ security agencies,<br />

record inspection and review regarding<br />

performance data and safety management<br />

programs, alcohol testing, compliance with<br />

hours- of- service rules, and other regulations<br />

that U.S. trucking companies must<br />

abide by.<br />

84 ■ <strong>For</strong> <strong>The</strong> <strong>Defense</strong> ■ <strong>December</strong> <strong>2011</strong><br />

On its face the <strong>2011</strong> MOU appears to regulate<br />

Mexican truck drivers and companies<br />

using safety and reporting obligations recognized<br />

by the U.S. Department of Transportation.<br />

See id.<br />

<strong>The</strong> Impact of the <strong>2011</strong> MOU<br />

on Safety and Small<br />

Trucking Businesses<br />

As the borders become easier for Mexican<br />

trucking companies to cross, so too<br />

will it become easier to overcome the hurdles<br />

that have hindered efficiently transporting<br />

and shipping Mexican products<br />

to the United States. Trucking analysts<br />

on all sides have expressed opinions on<br />

the effect that the <strong>2011</strong> MOU will have<br />

on small trucking companies. Not surprisingly,<br />

perhaps the loudest argument<br />

against cross- border trucking has foreseen<br />

danger to the American worker and small<br />

business owner, using the oft-raised specter<br />

of cheaper Mexican labor undercutting<br />

its American counterpart. <strong>The</strong>y argue<br />

that this will result in, among other things,<br />

American workers losing jobs to Mexican<br />

trucking, or lowering wages for American<br />

workers. <strong>The</strong> AFL-CIO, the largest federation<br />

of unions in the United States, for<br />

example, views it as unfair to U.S. workers<br />

and corporations unless the pilot program<br />

added provisions that would require signa-<br />

tory countries to adjust wages upwards and<br />

raise labor and environmental standards.<br />

Does that argument hold water? Supporters<br />

of NAFTA and cross- border trucking<br />

will say no, even though U.S. employment<br />

rose from 110.8 million people in 1993 to<br />

137.6 million in 2007, which roughly covers<br />

the period during which NAFTA took effect<br />

and its originally scheduled full implementation,<br />

an increase of 24 percent. But the average<br />

unemployment rate was 5.1 percent<br />

from 1994–2007, compared to 7.1 percent<br />

from 1980–1993. Additionally, U.S. business<br />

sector real hourly compensation rose<br />

by 1.5 percent each year between 1993 and<br />

2007, for a total of 23.6 percent over the full<br />

period. During 1979–1993, the annual rate<br />

of real hourly compensation rose by only .7<br />

percent each year, or 11 percent over the full<br />

14-year period. See NAFTA Facts, NAFTA—<br />

Myth vs. Fact, supra.<br />

Another common argument against<br />

Mexican cross- border trucking is that<br />

Mexican safety standards do not match<br />

those of domestic carriers, thereby making<br />

them unsafe, or at the very least, less safe<br />

than American trucks. Opponents argue<br />

that Mexican trucking companies have<br />

lower safety standards, employ “more dangerous”<br />

drivers, do not have proper insurance<br />

policies, and could become a source<br />

of increased congestion and accidents on

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