Trucking news and briefs for Monday, Nov. 4, 2024:
FMCSA proposes to delay compliance date for broker financial responsibility rules
With a new online registration system on the horizon, the Federal Motor Carrier Safety Administration is proposing to extend the compliance date of the long-anticipated final rule that changes various aspects of the financial responsibility requirements for brokers and freight forwarders.
The rule, finalized Nov. 16, 2023, contains various provisions with a Jan. 16, 2025, compliance date, while other provisions have a Jan. 16, 2026, compliance date.
The agency said it’s proposing the compliance date delay for the provisions for which the compliance date is Jan. 16, 2025, because FMCSA “has determined that only its forthcoming online registration system will be used to accept filings and track notifications, and this functionality will not be added to its legacy systems. As the new system is not expected to be available before Jan. 16, 2025, FMCSA proposes to extend the compliance date to provide regulated entities time to begin using and familiarizing themselves with the system before compliance is required.”
The new compliance date would be Jan. 16, 2026, to align with the date already set for the other provisions in the rule.
[Related: FMCSA says fighting fraud will improve safety, with first look at new registration system]
Provisions of the final rule that would be affected by the proposed delay include one that owner-operators and other small carriers have long waited for -- namely the immediate suspension of broker/freight forwarder operating authority when a broker or forwarder’s available financial security/bond amount falls below $75,000. Today, a 30-day notice period is required before operating authority suspension/revocation, and bad actors and/or failing brokerages have been shown to exploit that time lag to deliver and collect on more freight with carriers, even though they "do not intend to pay" carriers at all, as FMCSA has previously noted.
The proposed delay comes on the heels of inaction by the agency relative to another broker-related rule, one potentially delivering increased transaction records transparency for carriers and other parties to brokered loads. The agency's regulatory agenda updates this year and much of last all listed October 2024 as the month a proposed rule following motor carrier/owner-operator groups' petitions over the issue could be expected.
[Related: FMCSA, 'do your damn job' on broker transparency: OOIDA]
Other broker and/or freight-forwarder provisions that would be impacted by the most recent proposed delay:
- Surety or trust responsibilities in cases of broker/freight forwarder financial failure or insolvency. If a surety/trustee provider becomes aware that a broker or freight forwarder is experiencing financial failure or insolvency, it must notify FMCSA and initiate cancelation of the financial responsibility.
- Enforcement authority and penalties for financial responsibility providers who do not comply with the regulations. FMCSA is incorporating the statutorily mandated penalties into its regulations. After notice and an opportunity for a hearing, surety companies or financial institutions who violate 49 CFR 387.307 will be ineligible to provide financial responsibility for 3 years and may also be subject to a civil penalty.
FMCSA will accept comments on the proposed compliance date extension here for 15 days, through Nov. 19.
[Related: FMCSA tightens screws on brokers who 'do not intend to pay' carriers: Final rule]
ECU recall extends to 60K Macks
Following a massive recall of more than 445,000 Bendix electronic control units (ECUs), Mack Trucks is recalling more than 60,000 trucks with the affected ECUs installed, according to National Highway Traffic Safety Administration documents.
Mack is recalling a total of 60,450 model year 2020-‘25 Anthem, Granite, TerraPro and Pinnacle units with the affected ECUs installed.
In the affected ECUs, electrical noise and low signal to the power line carrier may cause the ECU to incorrectly process commands or stop working. As such, safety systems that depend on the ECU -- Automatic Traction Control, ABS, Electronic Stability Control, Active Cruise Control, and Collision Mitigation Systems -- may have diminished or lost functionality, increasing the risk of a crash.
Dealers will reprogram the ECU software, free of charge. Owner notification letters are expected to be mailed Dec. 13. Owners can contact Mack customer service at 1-800-866-1177 with recall number SC0472. NHTSA’s recall number is 24V-792.
Mack’s recall follows another large recall by Volvo Trucks affecting more than 126,000 trucks with the recalled ECUs.
[Related: 126K Volvo trucks recalled as part of massive Bendix ECU recall]
Orange EV electric terminal tractors recalled
Orange EV is recalling approximately 1,334 model year 2017-‘24 T-Series and 2023-‘24 e-Triever electric terminal trucks due to incorrect lockout instructions in safety manuals.
The Emergency Response Guide (ERG), operator, maintenance, and service manuals for the affected units incorrectly state that the emergency stop button in the vehicle cab will shut off and lock out the high voltage system. Incorrect lockout instructions can mislead the operator into thinking the high voltage system is shut down, increasing the risk of injury by electrical shock.
Orange EV will provide corrected ERG, operator and maintenance manuals and add additional warning labels, free of charge. Owner notification letters are expected to be mailed Dec. 20. Owners can contact Orange EV customer service at 1-866-688-5223 with recall number 2024-SRC-01. NHTSA’s recall number is 24V-800.
