Doug Marcello
WHY IT MATTERS: Risk reduction and denuclearization is not solely the responsibility of safety and risk departments. Every department can, and must, act within their powers to reduce exposure to liabilities. This is even more important in an era of deductibles/retention and captives. The all-out effort in every department protects the public, preserves company profits, and deflates an existential threat.
WHAT’S THE PROBLEM: There is a misperception that risk is limited to being a safety and risk department problem. Impose procedures. Minimize claims.
Moreover, safety and risk are misconceived as company burdens. They restrict profits. They erode the bottom line. Burdens.
While safety and risk lead risk reduction, it is company-wide effort. Every department can contribute. Do what they can to minimize exposure.
Unfortunately, these other departments are encouraged to the contrary. Sales to get loads. Recruiting to fill seats. Operations to route. Maintenance to keep wheels turning.
All these functions have elements of risk. Yet few companies encourage, let along focus, on reducing these risk bearing elements. In today’s environments, it is a “must” to do so.
WHAT CAN BE DONE: Safety and risk is not just external, addressing interaction with the motoring public and billboard lawyers. It is also an internal endeavor evangelized to all departments.
1. SALES-Risk-based pricing. Load pricing is market drive. But that pricing cannot ignore risk. The risk inherent in a load that goes to a litigious or accident fraught location.
I have clients that lament the costs of cases in “hellhole” jurisdictions. Yet, they priced the load to that location priced for less risky locations.
Sales must fulfill that role. Loads must be priced for the potential exposure. Or declined if the price does not factor the risk.
I know-easy for me to say as an attorney. But I’ve seen the alternative and the losses suffered by the failure to include risk or exposure in the pricing calculation.
2. RECRUITING-Exposure starts with drivers. Their actions, and their pasts, are potential detonators.
“Filling the seat” indiscriminately feeds the frenzy of the billboard attorneys. As I’ve said before, for them its not about the accident—it’s about the company. Systemic failures.
Questionable (dubious) hiring lobs them a soft one. The billboard attorneys can attack the company for hiring an unqualified driver to operate an 80,000 truck among the motoring public.
The defense starts with hiring. Qualified drivers. Defensible backgrounds. Training to address deficiencies.
Again, easy for me to say. But I’ve seen the alternative…and what it costs.
3. OPERATIONS: How can operations reduce risks? They just direct traffic.
Answer: a lot.
First, driver management is vital—HOS, fatigue, weather,… All of these are potential detonators.
Second, routing is risk related. Telematic companies provide insight into the most dangerous road, days of the week, times of day. These are invaluable insights that can minimize risk if employed in routing.
And one of the largest recent verdicts included an argument that weather should have been considered in routing.
Third, detention time. ATRI’s recent study found increased risk when there is excessive detention time. Not just rushing to make up time, but even enroute to get the load.
4. MAINTENANCE: Functioning vehicles reduce risk. Not just by avoiding failure caused accidents, but by minimizing driver distraction and rushing due to lost time.
Plus post-accident inspections that reveal per-accident defects are fodder for the argument of billboard attorneys that there is a systemic failure that requires a big verdict. “The company couldn’t even keep their vehicles compliant. How do you think the rest of the company operates.”
THE BIG THING: Multi-departmental safety and risk requires one overarching commitment-a safety culture. It starts at the top. With the folks who are responsible for, judged by, and profit from the bottom line.
In my current presentation, “Safety Profit”, I preach the message of this full court press by the entire company and all departments to protect profit…and the company itself. Management must buy in and make clear their commitment to the message. When that happens, safety and risk are no longer a burden. They are a profit. Keeping money on the bottom line by stemming the hemorrhage.
THE BOTTOM LINE: Safety and risk will determine your bottom line. But all departments can and must contribute. Make sure this message reaches all and is effectively enforced.
Increased insurance premiums have driven trucking companies to increase deductibles and amounts of retention.
Couple that with low margins. That makes safety and risk impactful on profits.
ATRI’s Operational Costs of Trucking for 2024 found that the total cost of risk, premium plus “out of pocket” is $0.135/mile; $5.43/hour. The impact is demonstrated by being seen from the perspective of the average profit margins.
Average non-LTL revenue? $3.707/mile. And operating margin? $0.111/mile and $4.471/hour. Less than the total cost of risk.
Want to increase profit? Increase safety and decrease risk.
Angel Coker Jones
Driver- and road-facing cameras, speed limiters, collision mitigation systems, lane departure warning systems, lane-keeping/lane centering systems, telematics and ELDs. These technologies are all measures many fleets have implemented to increase safety, but a large portion of the truck driver population would disagree that these are beneficial in reducing safety risks.
In fact, in CCJ’s 2024 What Drivers Want survey, more drivers said these systems reduce rather than improve driver safety.
When asked which technologies have the greatest impact on reducing driver safety, 67% said speed limiters, while 54% said driver-facing cameras, and 46% said ELDs. When asked which technologies have the greatest impact on improving driver safety, 61% said forward-facing cameras, while 31% said collision mitigation and lane departure warning systems.
Most drivers have an aversion to any technology in the cab at all with many comments from drivers sharing similar sentiments: “Technology has ruined the industry for drivers;” “Just let me drive the truck, don’t need all of that crap;” “All of this stuff listed is a distraction.”
“We are supposed to be professionals and all the intrusive apparatus that is listed takes the mental aptitude away from the driver,” said Jack Mancini, a driver at Latigo Trucking out of South Carolina.
This attitude can often lead to drivers attempting to disable technology.
“When drivers hate the intervention, they tend to ignore it, or they tend to tamper with the system, both of which are bad,” said Stefan Heck, founder and CEO of AI-powered safety platform Nauto.
It’s all about buy-in, said Dudy Markus, vice president of aftermarket at Cipia, a provider of computer vision AI for driver and cabin sensing, including ADAS and driver fatigue and distraction detection.
He said the key to adoption lies in addressing both practical and psychological barriers, ensuring that safety systems not only perform effectively but also resonate with the priorities of their users.
That was the case with forward-facing cameras.
As previously noted, a large portion of drivers (61%) consider forward-facing cameras to have the greatest impact on improving driver safety, though some noted in comments that it doesn’t actually improve safety so much as it exonerates drivers in the event of a lawsuit. This while 69% of respondents said driver-facing cameras are invasive, and 4% said there should be an option for drivers to disable them in certain situations.
Mark Murrell, president of Carriers Edge, a provider of online driver training for the trucking industry, previously told the CCJ that fleets once experienced the same criticism of road-facing cameras as they are now with inward-facing cameras, but now it has driver buy-in because perception has shifted.
“Drivers didn’t want anybody watching the road or watching what was happening, but then, all of a sudden, we started seeing all of these dashcam videos showing up on YouTube, and it became a way for drivers to share the crazy stuff they were dealing with on a day-to-day basis,” Murrell said. “Then we started seeing more and more stories about how the camera footage had exonerated drivers in crashes, and it was becoming kind of a safeguard and all of a sudden the driver perspective changed completely.”
It’s the same for all technology, Markus said.
He said for safety systems to gain traction, the perceived value must go beyond life-saving benefits. Though, in theory, that should be enough, he said in practice, adoption increases when these systems align with broader incentives.
For fleets, that looks like cost savings, efficiency improvements, regulatory compliance and risk mitigation. For drivers, that looks like bonus checks because of these results.
Markus said once drivers see the benefits and develop confidence in the system, they’re much less likely to attempt to disable it.
Fleets may experience drivers tampering with technology like cameras, from tossing an article of clothing over the lens to “accidentally” breaking the instrument. When it comes to other technology that drivers don’t perceive as an invasion of privacy, they may attempt to deactivate it simply because it can be annoying.
“Poor solutions with high false positives lead to alert fatigue, which is one of the primary reasons drivers attempt to override safety systems,” Markus said. “Systems must demonstrate their value in enhancing driver safety by providing accurate, timely feedback.”
In instances of unreliable technology, Markus said disabling it might benefit safety by reducing driver distraction, but disabling a quality system that prevents unsafe behaviors like unbuckled seatbelts or texting while driving can have life-threatening consequences.
“Loud alerts for objects on the passenger side can scare drivers into jerking the wheel. And following distance buzzers dramatically increase anxiety,” Terrence Hyden, a driver out of Orlando, said in response to the What Drivers Want survey.
Markus said if the initial system configuration properly accounts for varying driving situations, individual driver adjustments are typically minimal, and fleets get more buy-in from drivers.
He said a comprehensive safety system goes well beyond a simple dashboard camera.
“It should be automotive-grade and adaptive per fleet-specific needs, combining ADAS with DMS (driver distraction detection) to provide both real-time alerts and driver analytics that support ongoing skill improvement,” Markus said. “When all these elements are in place, instances of drivers disabling safety technology become negligible.”
Any driver hired could represent a multi-million-dollar negligent hiring lawsuit. You can reduce that risk by using a hiring checklist to avoid pitfalls in five key areas.
Mark Schedler
Any driver hired could represent a multi-million-dollar negligent hiring lawsuit. You can reduce that risk by using a hiring checklist to avoid pitfalls in five key areas.
- Driver application
The regulated driver application is an investigative roadmap for new hires.
Common application errors include:
- The application is missing, partially completed, or not compliant with 391.21. This happens most often with drivers who are:
- Long tenured,
- Part of an acquisition,
- Leased from a temporary agency,
- Office employees who fill in occasionally, or
- Transitioned from a non-regulated role like a warehouse person.
- The driver did not sign the application before the first dispatch.
- Omissions of critical information like regulated employers or prior residences in the prior three years.
- Driver background investigation/Safety performance history
Avoid these prior employer investigation mistakes:
- Failure to inform a driver of their due process rights to review information found in the new-hire screening process. Notification up front is critical if you receive adverse information and choose not to hire the person.
- Failure to question the driver about greater than 30-day employment gaps. These periods could be due to alleged self-employment, a license suspension, or incarceration.
- Not obtaining the safety performance history within 30 days after the hire date.
- Making only one attempt to verify prior employer dates of employment and accidents.
- Disregarding the driver having several employers in 3 years during a driver shortage.
- Motor vehicle records (MVRs)
An expert should review MVRs. The person must know the state codes and the differences between various states’ MVRs. If they are not knowledgeable, they may overlook the following items:
- Improper licensing for the driver’s assigned vehicle or operation, such as:
- Intrastate restriction for an interstate driver,
- Wrong license class,
- Missing endorsement, or
- Restricted/suspended/revoked license.
- Failure to transfer the license to a new state of residency within 30 days.
- Medical certification
Common mistakes when documenting a driver’s medical certification include:
- Not verifying the medical examiner’s listing on the National Registry for new hires when a current medical card is accepted, as well as after each exam (CDL and non-CDL).
- Failing to request a CDL MVR at the time of hire or within 15 days of each DOT exam.
- Incorrect CDL driver self-certification for the type of driving and medical certification. For example, the MVR may show as “Excepted Interstate,” but the driver is not exempt from medical certification requirements.
- Road test
Road tests are a carrier’s seal of approval that a driver can operate their commercial motor vehicle (CMV) safely. Errors or omissions when assessing a potential driver’s skills include:
- No remedial training to correct skill deficiencies noted during the test.
- A missing road test certificate and/or evaluation sheet.
- Tests are part of, not before, the first dispatch, such as while delivering loads.
- The test was not in a vehicle like the one the driver was assigned, such as testing in a straight truck when driving a combination tractor-trailer is part of the driver’s role.
- Inconsistent enforcement of testing standards between applicants.
In closing, reduce the risk of negligent hiring claims by using a hiring checklist for every driver who will operate a CMV for your company.
If you are only using camera footage to exonerate drivers and want to be defendable in the face of costly litigation, use these four steps to build a best-in-class safety program.
Mark Schedler
Excessive verdicts in the United States have spread like wildfire on a hot windy day. This trend has put any fleet that does not use best-in-class safety practices in the path of potential devastation.
According to the American Transportation Research Institute (ATRI), their 2020 study “Understanding the Impact of Nuclear Verdicts on the Trucking Industry” found:
- From 2015-2019, there were nearly 300 cases over $1million; and
- From 2010-2018, the number of verdicts over $10 million nearly doubled and the dollar amount of awards grew 51.7% annually.
If you are only using camera footage to exonerate drivers and want to be defendable in the face of costly litigation, use these four steps to build a best-in-class safety program.
- Obtain leadership support.
Leadership’s attitudes, values, and beliefs drive a company’s culture. Collaboration with the executive team is imperative to create a proactive safety program. Leaders must uphold policies and best practices that keep safe, all employees, including construction equipment transport drivers, and the public.
From the 2024 J. J. Keller & Associates, Inc. Customer and Market Insights Fleet Manager survey, 51 percent of fleet managers indicated that the most significant determinant of running a safe operation was that their leadership consistently shows that safety is important.
- Develop and enforce policies and procedures that exceed regulations.
Another significant finding in the 2020 ATRI study was that pre-crash actions by carriers are critical. Plaintiff and carrier defense attorneys agreed that “crash avoidance is EVERYTHING.” They also agreed that carriers must always follow policies and procedures and should exceed the regulations.
Policies and procedures are the safety management controls that when consistently enforced, guide your team to stay compliant, maintain company safety standards, and drive improvement.
- Use video in a corrective action training (CAT) program.
A plaintiff’s attorney in post-crash litigation can claim negligence if there is any failure to follow policies, procedures, or reasonable practices that find, coach, and remediate high-risk behavior.
Timely detection and correction of unsafe behavior through video-based coaching:
- Avoids crashes and violations,
- Reduces potential liability, and
- Improves retention.
A well-designed CAT program will also align with state labor laws, contracts, and any union agreements.
- Share safety improvements.
To obtain an insurance policy renewal at the lowest possible premium, a carrier must be able to share with an underwriter:
- The level of risk regarding recent crash and loss experience,
- The root cause of severe crashes and high-frequency minor crashes, and
- The actions to address those root causes and to improve the safety program.
Drivers are also stakeholders in your company’s safety efforts. Share safety successes with the entire team to build momentum and transform the culture.
In closing, a best-in-class fleet safety program driven by video-based coaching can protect your business against excessive verdicts and improve hiring and retention.
Road Legends
Artificial Intelligence (AI) has emerged as a game-changer in various sectors, and the trucking industry is no exception. From optimizing routes and fuel efficiency to enhancing safety and improving fleet management, AI is revolutionizing the way trucks operate on the road. Let’s find out the power and impact of AI in the trucking industry by exploring the benefits it brings, the challenges it addresses, and the future possibilities it unlocks.
Enhancing efficiency and optimizing operations with AI
AI is revolutionizing the trucking industry by enhancing operational efficiency. Intelligent route planning and optimization algorithms minimize travel time and maximize fuel economy. Fuel efficiency and cost reduction are achieved through AI-powered systems that analyze various factors influencing fuel consumption. Predictive maintenance utilizes AI to monitor vehicle health, reducing breakdowns and optimizing fleet management. AI is also streamlining supply chain and logistics operations, ensuring timely deliveries and inventory management. Let’s talk in detail below.
Intelligent route planning and optimization
AI-powered route planning algorithms consider real-time traffic data, weather conditions, and other variables to optimize truck routes. By analyzing historical and current data, AI systems can identify the most efficient routes, reducing travel time and fuel consumption. These intelligent systems can adapt to dynamic situations, providing drivers with real-time updates and alternative routes to avoid traffic congestion or road closures. Intelligent route planning and optimization not only improve efficiency but also enhance customer satisfaction by ensuring timely deliveries.
Fuel efficiency and cost reduction
AI plays a crucial role in improving fuel efficiency and reducing operational costs in the trucking industry. Advanced AI algorithms analyze various factors such as load weight, road conditions, and driving behavior to optimize fuel consumption. AI systems can provide real-time feedback to drivers, promoting fuel-efficient driving techniques. Additionally, AI-powered predictive analytics can identify patterns and anomalies in fuel usage, enabling companies to implement strategies to reduce fuel waste. By leveraging AI for fuel efficiency, trucking companies can significantly reduce their operational costs and minimize their environmental impact.
Predictive maintenance for fleet management
AI-driven predictive maintenance is transforming fleet management by optimizing vehicle maintenance schedules. Using sensors and data analytics, AI systems monitor key parameters such as engine performance, tire condition, and fluid levels in real-time. By analyzing historical data and detecting patterns, AI algorithms can predict potential maintenance issues before they escalate into major breakdowns. This proactive approach enables companies to schedule maintenance and repairs at convenient times, minimizing downtime and improving fleet availability. Predictive maintenance not only enhances operational efficiency but also prolongs the lifespan of vehicles, reducing overall maintenance costs.
Streamlining supply chain and logistics
AI technologies are streamlining the supply chain and logistics operations in the trucking industry. AI-powered systems analyze vast amounts of data related to inventory levels, customer demand, and delivery routes. By optimizing these variables, AI can identify the most efficient routes, minimize empty truck miles, and improve load consolidation. Additionally, AI-driven demand forecasting and inventory management systems enable companies to optimize stock levels and reduce inventory holding costs. With improved supply chain visibility and efficiency, trucking companies can enhance customer service, reduce costs, and maintain a competitive edge in the market.
Revolutionizing safety and risk management
AI is revolutionizing safety and risk management in the trucking industry by leveraging advanced technologies. Real-time monitoring and early warning systems equipped with AI algorithms can detect potential risks such as driver health issues, fatigue, distraction, and hazardous road conditions. These advancements in safety technologies are improving road safety and reducing the likelihood of accidents in the trucking industry.
Real-time monitoring and early warning systems
Real-time monitoring and early warning systems utilize AI technologies to detect and mitigate potential risks on the road. Advanced sensors and AI algorithms monitor driver behavior, vehicle performance, and environmental conditions. By analyzing data in real-time, these systems can detect signs of driver fatigue, distraction, or erratic driving. Early warning alerts are provided to the driver and fleet managers, enabling timely interventions and reducing the risk of truck driver accidents. Real-time monitoring and early warning systems enhance safety by proactively addressing potential risks and promoting safe driving practices.
Driver assistance and safety features
AI-powered driver assistance features are improving safety in the trucking industry. These features include collision avoidance systems, adaptive cruise control, and lane departure warnings. By utilizing sensors and AI algorithms, these systems can detect potential hazards, provide alerts, or take corrective actions.
For example, collision avoidance systems can automatically apply brakes in emergency situations, reducing the risk of rear-end collisions. Adaptive cruise control adjusts the vehicle’s speed to maintain a safe distance from other vehicles. Lane departure warnings alert drivers when they unintentionally drift out of their lane. Driver assistance features enhance safety by assisting drivers in avoiding potential accidents.
AI-enabled video analytics for accident prevention
AI-enabled video analytics systems analyze video footage from cameras installed in trucks to identify risky driving behaviors such as tailgating, aggressive maneuvers, or distracted driving. By detecting these behaviors, AI algorithms can provide valuable insights for driver training and behavior modification. Additionally, these systems can assist in accident investigations by providing accurate data and visual evidence. AI-enabled video analytics contribute to accident prevention by identifying high-risk behaviors, promoting safe driving practices, and improving overall road safety.
Transforming driver experience and well-being
AI is revolutionizing the trucking industry by transforming the driver experience and prioritizing driver well-being. Intelligent driver assistants, fatigue and distraction monitoring systems, and training and skill development programs are enhancing driver performance, safety, and overall job satisfaction.
Intelligent driver assistants
Intelligent driver assistants provide real-time feedback, guidance, and support, improving driver performance and safety on the road. From collision avoidance systems to adaptive cruise control, these AI-enabled assistants enhance situational awareness and assist in making critical driving decisions.
Fatigue and distraction monitoring
Fatigue and distractions pose significant risks to truck drivers. AI-based fatigue and distraction monitoring systems utilize advanced technologies such as facial recognition and eye tracking to detect signs of fatigue or distraction in real time. These systems issue alerts to drivers, reminding them to take breaks or refocus their attention, thus preventing accidents caused by driver fatigue or distractions.
Training and skill development
AI-driven training and skill development programs are empowering truck drivers to enhance their capabilities and stay updated with industry trends. Virtual reality (VR) simulations, online training modules, and personalized learning platforms equipped with AI algorithms enable drivers to receive targeted training, practice challenging scenarios, and improve their skills. Such programs contribute to professional growth, job satisfaction, and increased confidence among truck drivers.
Advancing autonomous trucking with AI
AI is propelling the advancement of autonomous trucking, revolutionizing the industry by introducing various levels of automation. From driver assistance systems to fully autonomous trucks, AI is reshaping the future of transportation.
Level 1-5 automation: understanding the spectrum
Autonomous trucking operates on a spectrum that encompasses five levels of automation. Level 1 involves basic driver assistance features, while level 5 signifies complete autonomy without human intervention. Understanding this spectrum is crucial for evaluating the capabilities, limitations, and potential risks associated with different levels of autonomous trucking.
AI-powered sensors and perception systems
AI-powered sensors and perception systems are the eyes and ears of autonomous trucks. These advanced technologies, including lidar, radar, and cameras, gather real-time data about the surrounding environment, enabling the truck to perceive and analyze its surroundings accurately. By interpreting this data, AI algorithms facilitate decision-making and ensure safe navigation for autonomous trucks.
Data-driven decision-making for autonomous trucks
Autonomous trucks heavily rely on data-driven decision-making. AI algorithms process vast amounts of sensor data, including road conditions, traffic patterns, and vehicle dynamics, to make real-time decisions. These decisions encompass navigation, route planning, speed adjustments, and responding to unexpected situations. By leveraging data-driven decision-making, autonomous trucks can operate efficiently, optimize fuel consumption, and ensure a smooth and safe transportation experience.
Overcoming challenges and ethical considerations
While AI offers numerous benefits, it also poses challenges and ethical considerations that need to be addressed to ensure responsible and safe implementation in the trucking industry.
Data privacy and security
The use of AI in the trucking industry involves the collection and analysis of vast amounts of data. Ensuring data privacy and security is crucial to protecting sensitive information and preventing unauthorized access or misuse. Robust cybersecurity measures, data encryption, and strict data governance policies are essential for maintaining the privacy and integrity of driver and operational data.
Liability and legal implications
As AI takes on more responsibilities in autonomous trucking, questions regarding liability and legal implications arise. Determining accountability in the event of accidents involving autonomous trucks, establishing regulations, and defining the legal framework are complex issues that need to be addressed to ensure a smooth transition to a future with AI-powered trucks.
Human workforce transition
The integration of AI and autonomous trucks raises concerns about their impact on the human workforce. As automation increases, there will be a need to manage the transition for truck drivers, whose roles may evolve or be replaced. Supporting retraining programs, facilitating job transitions, and addressing potential socio-economic impacts are critical to ensuring a smooth transition for the human workforce.
The future possibilities and implications of AI in trucking
The future possibilities of AI in the trucking industry are vast and exciting. From fully autonomous trucks to AI-enabled predictive maintenance and advanced logistics optimization, the potential for AI to revolutionize the industry is immense. However, careful consideration of implications such as job displacement, regulatory frameworks, and ethical guidelines will be crucial to harnessing the full potential of AI in a responsible and sustainable manner.
