Archive for category Transportation

Federal Government Lifts Cargo Insurance Coverage Requirement

Caveat Emptor!  The carrier you may be hiring to move your shipments (or your supplier delivering your shipments) is no longer required by the US government to maintain a minimum level of cargo insurance.

The Federal Motor Carrier Safety Administration issued a ruling that became effective on March 21st that allowed commercial shippers to no longer maintain a set level of cargo insurance.  Citing that most of the commercial carriers are maintaining a higher level of insurance coverage than the minimum, and this stipulation falls outside the regulatory responsibility.

While this change will probably not affect your shipments, it is important to watch out for changes in the agreement you have with your carriers.  It would be easy at this time to reduce coverage by raising deductible, reducing normal coverage amounts or in extreme cases no longer provide coverage for product moving on their vehicles.

Full information on the change and an article weighing the pro’s and cons can be found here.

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Advances in Supply Chain? Thank a Veteran

There’s an old saying that an Army travels on it’s stomach.  The importance of supplies in keeping an army (or navy or

Members of WWII's the Red Ball Express

air force, or marine) unit moving has been a primary focus since Hannibal crossed the Alps.  Great military leaders understood the importance of getting supplies to the troops and made sure it happened.

The use of railroads, convoys,  air cargo planes, and packaging are a result of military need, or were improved because of military need.

Today’s posting is not about risk in supply chain, it’s about honoring the men and women of the military who have served, both on the field of battle and in support roles. 

To those brave men and women who have protected this country. . .

Thank You!

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DOT Bans Texting While Driving

On January 26th U.S. Transportation Secretary Ray LaHood announced that effective immediately commercial truckers and bus drivers are prohibited from sending texts while operating a vehicle.   This stand comes after a number of studies have identified texting and cell phone usage while operating a vehicle has contributed to many accidents and deaths. 

The decision is based on an existing Federal Regulation that focuses on driver distraction.  A $2750 fine. 

There has been an increased focus on distracted driving from both the commercial as well as civilian population.  Oprah has highlighted it on her talk show, a number of states have banned the use of cell phones and texting while driving and a significant PR push has been put into place to curb this issue.

If your organization owns a fleet, be sure your drivers are complying with the regulations.  Being caught has greater ramifications than just the fine.  It could affect your insurance premiums, on time delivery, operating authority, and reputation.

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