0985 Risk Control

Module 10: Fleet Risk

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 Course Plan
Module Titles
Module 1: Introduction to Risk Assessment and Treatment
Module 2: Root Cause Analysis
Module 3: Business Continuity Management
Module 4: Physical Property Risk
Module 5: Intellectual Property and Reputation Risk
Module 6: Legal and Regulatory Risk
Module 7: Management Liability & Human Resources Risk
Module 8: Environmental Risk
Module 9: Crime and Cyber Risk
Current Focus: Module 10: Fleet Risk
Module 11: Smart Products and Risk Management
Final Exam (no content)

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 Learning Outcomes

1. Explain how fleets can be viewed as systems and

the implications for fleet loss control.
2. Use risk control methods to control losses
associated with the components of a motor fleet
safety system.
3. Describe the technological advances in motor
vehicle fleet safety.

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• 10.1 Fleets as Systems
• 10.2 Federal Motor Carrier Safety Regulations
• 10.3 Controlling Losses Associated with Motor Vehicle
Safety Systems

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Module 10 – Section 1

Fleets as Systems

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Fleets as Systems
• Transportation system
• People + materials + supplies >> Distribution
• Common System features:
– Components and purpose
– Environment
– Life cycle
– Systems and relationships

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Components and purpose
• Vehicles
• Vehicle maintenance
• Operators
• Cargoes
• Routes
• Vehicle schedules

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Transportation of Cargo or Persons
• Reliable
– Complete trips as scheduled without harm to freight or passengers
• Safe and well maintained
– Minimal accidents and repair downtime
• Efficient
– Acceptable cost
• Environmentally neutral
– No pollution or environmental harm
• Lawful
– Respect all applicable laws such as size/weight restrictions;
reducing court judgments, fines;

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Environment
• Physical
– Highways, weather conditions, terrain, communities, tangible objects
• Legal
– Maximum speeds, weight, hours of service, equipment, licensing of
operators
– Different jurisdictions, changes in laws
• Economic
– Budgets and economic cycles
– Poor maintenance, strikes, civil disorders threaten safe delivery
• Competitive
– Intense competition >> safety efforts lowered for short term savings

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Life Cycle
• Conceptual phase
– Types of vehicles to meet organization’s needs
• Engineering phase
– Types of vehicle, operators, routes, schedules, maintenance
• Production phase
– Purchasing vehicles selected
• Operational phase
– Using and maintaining vehicles selected
• Disposal phase
– Eliminating and replacing older vehicles
– Retiring or reassigning unqualified operators

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Life Cycle (cont’d)

Conceptual
Re-assess needs, Determine needs
skill sets
(replace, retire)

Disposal Engineering

Select vehicle
types, operator
skills, routes,
Schedules, maintenance

Acquire vehicles
Use Operational Production
vehicles

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Systems and Relationships
• Transportation and road systems
• Vehicle mechanical system
• Operator
• Cargoes, routes, schedules, maintenance
• Risk control and safety implications
– Small system failure could lead to large system failure
– Failure of larger system degrades environment making accidents
more likely to happen
– Failure of any component of any system has wide ranging effects
– Effective fleet safety program works to prevent original failure and all
consequences throughout all systems

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Common Causes of Truck Accidents
• Driver Error
– Drivers of large trucks are ten times more likely to be the cause of
trucking accidents than other factors, such as weather, road
conditions, and vehicle performance, according to a recent study
released by the Federal Motor carrier Safety Administration
(FMCSA).

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Common Causes of Truck Accidents (cont’d)
• Driver Error
– The FMCSA study also examined factors that cause
truck drivers to make errors, such as use of prescription
and over-the-counter drugs, speeding, fatigue,
inattention, distractions, work environment, and
unfamiliarity with the road. The study found that of all
truck accidents caused by driver error:
• 44% involved truckers who were taking prescription and over-
the-counter-drugs
• 23% involved drivers traveling too fast for conditions, and
• 18% were caused by driver fatigue.

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 Module 10 – Section 2

Federal Motor Carrier

Safety Regulations

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Common Causes of Truck Accidents
• Driver Error Causing Truck Rollovers
– Rollovers are one of the major causes of fatalities and
injuries in trucking accidents. They are often caused by
driver errors such as:
– taking a curve too fast
– driving too fast
– fatigue
– inexperience, or
– improperly distributing the truck's load.

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Common Causes of Truck Accidents (cont’d)

• Equipment Problems
– The next most common cause of truck accidents is
equipment failure. This can include manufacturing
mistakes (defective tires) or design errors (failure to
provide backing warning or object detection systems).
However, most mechanical causes of truck accidents are
caused by a failure to properly maintain the equipment.
(To learn more about accients caused by brake and tire
problems, read Nolo's article Trucking Accidents Caused
by Brake and Tire Failure

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Common Causes of Truck Accidents (cont’d)
• Equipment Problems
– Examples:
• removing or depowering the front
brakes, which can cause a truck to
jackknife
• brake failure due to inadequate
adjustments
• tire blowouts due to wear
• improper securing or load distribution,
• defective steering
• improper trailer attachment
• defective side or rear lighting,
transmission failure.

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Common Causes of Truck Accidents (cont’d)
• Defective Brakes: Who is to Blame?
– When brakes malfunction, blame may be placed on a variety of
parties (individually or in combination), including:
• the driver
• the company that loaded the truck
• the party responsible for maintaining the brakes (often the owner-
operator), and
• the manufacturer of the brakes.

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Common Causes of Truck Accidents (cont’d)
• Defective Brakes: Who is to Blame?
– The trucking, hauling, and leasing companies often
argue among themselves over whose insurance is going
to compensate the victim. For example, the trucking
company might claim that the accident was caused by
defective brakes. The brake company might then point
the finger at the leasing company, claiming that it failed
to maintain the brakes in good working order.

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Federal Motor Carrier Safety Regulations-US
• Application to fleet operations
• FMCSR - Monitors, promotes, ensures carrier safety
• GVWR greater than 26,001 pounds
• GVWR greater than 26,001 pounds + towed vehicle greater
than 10,000 pounds
• Transport 16 or more people
• Transport hazardous materials

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Significant Rules
• Driver qualification
• Commercial driver’s license
• Testing procedures and methods
• Knowledge and skills
• Minimum passing scores
• Other licensing requirements
• Basis for suspension: crime or serious traffic violations
• Inform employer if license suspended, revoked, canceled
• Previous employment information
• Annually provide list of motor vehicle violations

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Significant Rules (cont’d)
• Drug testing –Safety sensitive functions
– Commercial driver’s license holders
– Testing – Drug and alcohol/Reasons:
• Pre-employment
• Random
• Reasonable suspicion/reasonable cause
• Post-accident
• Return-to-duty
• Follow-up
– Alcohol as well as controlled and legally prescribed substances
– If found over limit
• Removal from duty for at least 24 hours-”standing down”
• Education/treatment for substance abuse

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Significant Rules (cont’d)
• Hours of service-maximum number of hours operating vehicle
• On-duty time
– Driving, waiting for dispatch, inspecting, servicing vehicle
– Loading/unloading, paperwork, alcohol/drug testing
• Property or passengers
– Maximum driving times, minimum break times
– Maximum on-duty time, maximum weekly hours of duty
• Special provisions
– Emergencies
– Adverse driving conditions
– Explosives or hazardous materials
– Driver salespersons or oil field operation drivers

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Significant Rules (cont’d)
• Accident reporting
– Used in investigations and special studies
– Reportable accident or occurrence
• Fatality
• Bodily injury with immediate medical treatment away from the scene
• Requires towing away
– All accidents listed in register
• Date, location, driver name, number of injuries/fatalities
• Release of hazardous materials
• Copies of accident reports

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Significant Rules (cont’d)
• Record keeping
– General business records – 3 years
– Shipping records – 1 year
– Transportation records – 1-3 years
• Electronic device usage
– Prohibited use while driving
– Cell phone, tablet, computer
– Significant fines and disqualification

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Compliance, Safety and Accountability Program
• Safety Measurement System
– Track and update safety performance
– Safety score based on
• Roadside inspections, safety-based violations
• Reported accidents, federal motor carrier census
• Unsafe driving, hour-of-service issues, driver fitness
• Controlled substance/alcohol impairments
• Maintenance, cargo-related issues
• Accident frequency and severity
– Intervention >> Warning letters >> On-site investigations
• Safety score, suggested remedies, consequences

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 Motor Carrier Safety Regulations – Canada

• Motor Carrier Safety

– Transport Canada's Motor Carrier Division is primarily responsible
for facilitating the reduction of fatalities, injuries and crashes
involving large commercial trucks and buses in Canada. The Motor
Carrier Division works closely with the provinces, territories and
industry on rules and regulations governing the safe operation of
commercial vehicles, drivers and operators.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Motor Carrier Safety

– Road safety in Canada is a shared responsibility between the federal and
provincial/territorial governments. The federal government is responsible for
the regulations that govern the construction and importation of new motor
vehicles under the Motor Vehicle Safety Act and for limited operational
matters for commercial motor vehicles (bus and truck) under the Motor
Vehicle Transport Act. The provinces and territories are responsible for the
enforcement of safety on Canada's roads and highways, including the
enforcement of the federal Hours of Service Regulations.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Motor Carrier Safety

– Safety oversight is accomplished through the National Safety Code (NSC),
which was developed in 1987 as a response to impending economic
deregulation of the trucking industry. Its goal is to improve motor carrier
safety in Canada through the consistent implementation of safety standards.
The federal, provincial and territorial governments developed the NSC as a
comprehensive set of 15 standards to address motor carrier operations in
Canada, covering all aspects of commercial vehicle, driver and motor carrier
safety.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Provincial and territorial regulations govern the operation of the

commercial bus and truck industry except for the rules and regulations
Transport Canada’s Motor Carrier Division sets in support of the safe
operation of federally-regulated (extra-provincial) motor carriers and
commercial vehicle drivers.
• The federal government only has authority over extra-provincial truck
and bus carriers that carry goods or passengers across a provincial or
international boundary.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• The Motor Vehicle Transport Act (MVTA) that allows

provinces and territories to regulate extra-provincial truck
and bus carriers on behalf of the federal government. The
MVTA also has two federal regulations that govern:
– Hours of Service for commercial vehicle drivers
– The issuance or revocation of Safety Fitness Certificates.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Fatigue
– The main contributors to fatigue were presented and risk factors
specific to the motor carrier industry were documented. As noted,
hours of service (HOS) regulations theoretically address important
risk factors, even though they have significant limitations.
– The case is made that HOS regulations are necessary but not
sufficient to address fatigue in the motor carrier industry.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Fatigue
– There is therefore a need to make stakeholders understand this
reality: HOS rules form the foundation of fatigue management, but
they need to be complemented by various initiatives to generate a
comprehensive and efficient fatigue management approach.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Fatigue
– This conclusion is important given the fact that many jurisdictions
report HOS rules as the sole and primary means to address driver
fatigue. Considerations with regards to complementary initiatives
are presented below. But first, with regards to HOS per se:
– Human Factors in the Motor Carrier Industry in Canada
– Pierre Thiffault (Ph.D.)
– Chair of the Human Factors and Motor Carrier Safety Task Force.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Motor Carrier Safety Fitness Certificate Regulations,

– Requires federally-regulated bus and truck motor carriers crossing provincial
boundaries or international borders to obtain a safety fitness certificate
before they may operate on Canadian highways.
– These regulations also set criteria for jurisdictions to issue or remove motor
carrier safety fitness certificates;
• Commercial Vehicle Drivers Hours of Service Regulations,
– Set the hours of work and rest rules for federal motor carriers and their
drivers.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Daily Driving and On-duty Time

• 12. (1) No motor carrier shall request, require or allow a
driver to drive and no driver shall drive after the driver has
accumulated 13 hours of driving time in a day.
• (2) No motor carrier shall request, require or allow a driver
to drive and no driver shall drive after the driver has
accumulated 14 hours of on-duty time in a day.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Mandatory Off-duty Time

• 13. (1) No motor carrier shall request, require or allow a
driver to drive and no driver shall drive after the driver has
accumulated 13 hours of driving time unless the driver takes
at least 8 consecutive hours of off-duty time before driving
again.

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 Motor Carrier Safety Regulations-Canada (cont’d)

• Mandatory Off-duty Time

• (2) No motor carrier shall request, require or allow
a driver to drive and no driver shall drive after the
driver has accumulated 14 hours of on-duty time
unless the driver takes at least 8 consecutive hours
of off-duty time before driving again.

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 Motor Carrier Safety Regulations – Canada (cont’d)

• Mandatory Off-duty Time

• (3) No motor carrier shall request, require or allow
a driver to drive and no driver shall drive after 16
hours of time have elapsed between the conclusion
of the most recent period of 8 or more consecutive
hours of off-duty time and the beginning of the next
period of 8 or more consecutive hours of off-duty
time.

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Vehicle Safety – Certificates
• Each provincial authority must
– issue a unique National Safety Code number to each extra-provincial motor
carrier undertaking that operates vehicles that are plated, or must be plated,
in the province under the jurisdiction of the provincial authority; and
– develop and maintain, for every extra-provincial motor carrier undertaking
that is based in the province and that holds a safety fitness certificate, a
motor carrier profile that contains the information set out in section 2 of Part
C of NSC Standard #14.
– before issuing a safety fitness certificate to an extra-provincial motor carrier
undertaking, a provincial authority must, for the purpose of determining its
fitness, assign a safety rating to that extra-provincial motor carrier
undertaking in accordance with the process set out in section 3 of Part C of
NSC Standard #14.

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Industry Groups
• Canadian Truckers Association
– Legislative Monitoring & Representation
• A key element of the CTA’s mandate is to monitor Federal and
Provincial based legislative issues that affect the trucking
industry. In fact, we have resources exclusively dedicated to this
activity. Our strategic alliance with the various Trucking
Association also allows us to move beyond monitoring alone,
and ensure that if and when the various regulators and
legislators in the Federal, Provincial or Municipal governments
attempt to undertake an action that will negatively affect the
trucking industry (and your business), your voice will be heard.

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Industry Groups (cont’d)
• Canadian Truckers Association
– Some of the issues identified and addressed in the past
include;
• Hours Of Service
• Mississauga Cartage License Bill
• Amendments To The PCV Act
• Highway/Road Planning
• Regional Transportation Plans (Including York, Peel And
Mississauga Regions)
• Drive Clean Program
• Proposed Highway 401 GTA On/Off Ramp Truck Usage Restriction
• Toll Roads/407 ETR Usage Charges
• Proposed Toronto Delivery Vehicle Parking Ban
• Toronto Waterfront Revitalization Plan

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 Module 10 – Section 3

Controlling Losses Associated with

Motor Vehicle Safety Systems

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Controlling Motor Vehicle Safety Systems Losses

Vehicles
• Vehicle selection
– Task of vehicle, cargo, number of passengers, area
– Cost and safety factors
– Gross vehicle weight rating (GVWR) and licensing needs
– Ease of maintenance
Same manufacturer
•
• Good performance record
– Uniformity
• Driver adaptability and compatibility
• Facilitate road side repairs

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Controlling Motor Vehicle Safety Systems Losses (cont’d)

• Safety equipment
– Solid construction, good maneuverability, visible color
– Specialized equipment
– Communications
– Vehicle replacement
– Wear/obsolescence/cost of repairs
– Opportunity to reevaluate needs
Vehicle Maintenance
– Proper maintenance improves safety record
– Must be done safely
– Regular preventive maintenance
• Prevent accidents
• Avoid breakdowns >> On time delivery

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 Controlling Motor Vehicle Safety
Systems Losses (cont’d)
• Vehicle maintenance – Environmental considerations Manitoulin Transport
– For Manitoulin, being environmentally responsible is top priority. We are constantly
doing our part in developing sustainable measures so that our environment can be
passed down to the next generation. By establishing a division within the company,
which monitors and carries out our environmental programs, we are developing
initiatives for the years ahead. Below are some of the latest accomplishments in this
field:
• We’re proud to report that we reduced our emissions of particulate matter (PM) by 37% and
Nitrous Oxide (NOx) by 45%.
• We only use ultra-low sulphur diesel fuel in our engines.
• The average age of our power fleet is 2.9 years; we are committed to replacing older engines
with new ones.
• Manitoulin Transport is SmartWay certified in the U.S. and Fleetsmart certified in Canada.

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Controlling Motor Vehicle Safety Systems Losses
Drivers
• Driver selection
• Analyzing job functions
• Recruiting applicants
• Screening applicants
• Hiring employees
• Orienting employees
• Driver training
• Classroom instruction, behind-the wheel training
• Simulations, independent study: textbooks, film, computer
• Qualification files with record of training received
• Basic, refresher, remedial, specialized training

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Controlling Motor Vehicle Safety Systems Losses (cont’d)

• Driver supervision
• Procedural and physical control
– Written logs, precise routing and schedule
– Two-way radios, cell phones
– Continuous recording – speed and direction
– Meetings and drive-along
– Rewards for good performance - discipline for poor performance

• Driver licensing
• Current valid licenses
• Jurisdictional differences in requirements
• Changing requirements
• Federal, provincial and state requirements

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Controlling Motor Vehicle Safety Systems Losses (cont’d)

• Driver dismissal
– Driver deficiency >> Poor record
– Replacement qualifications
– Minimize negative effect on safety performance or conduct
– Legal rights of dismissed employee
Cargoes -Suitability to vehicle
– Freight and passengers
– Driver safety
– Safeguards against inherent hazards
– Age of vehicle and capacity to properly handle cargo

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Controlling Motor Vehicle Safety Systems Losses (cont’d)

Cargoes
– Suitability of routes
• Reasonable risk to cargo or persons/property along route
– Safeguards against inherent vice
• Appropriate environment for cargo
• Proper heating or refrigeration
• Packaging and water proofing
Routes
– Safety
• Traffic, grades, communications, facilities, lighting
– Distance
• Safe, economical routes >> Shortest distance
• Flexibility for rerouting

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Controlling Motor Vehicle Safety Systems Losses (cont’d)

Vehicle schedules
• Reasonable pace
– Suitable schedule, neither too tight or too lax
• Incentive pay
– May jeopardize safety to gain bonus, etc
– Gear incentive to safety-related conduct
• Avoid schedule conflicts
– Computerized scheduling and dispatching
• Flexibility for unforeseen events

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Technological Advances in Motor
Vehicle Safety

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Technological Advances in Vehicle Safety
• Need for technology
– Driver error >> Accidents
– Minimal on-road supervision
• Technological advances
– Onboard computers
• Monitor driver and vehicle behavior
– Stability control systems, rear-mounted video cameras
– Antilock braking systems, onboard tire inflation systems
– Satellite communication - GPS
– Onboard scales – gross vehicle weight, net weight
– Dash-mounted video cameras, lane departure warning systems
– Forward collision warning systems

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 Technological Advances in Vehicle Safety (cont’d)

• Manitoulin Transport
– Security Technology
• Manitoulin Transport invests in the right technologies that provide
customers with superior freight security and consistent reliability
of service they deserve.
• Some of our most notable investments in security include:
– Global positioning systems for all our vehicles. This system will
locate our vehicles at all times.
– All tractors use an electronic key ring that will start the vehicle within
close proximity of the ignition switch. Without this key ring, the
vehicle will not start.

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Any questions?

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Thank You
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School of Continuing Studies

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