American Trucking Association Targets “Nuclear” Verdicts

October 21, 2019 by Levinson and Stefani Leave a Comment

American Trucking Associations President Chris Spear is planning to lead the organization in fighting large court verdicts against the trucking industry. He claims the association is always quick to compensate those involved in cases in which the ATA is at fault, but that most cases are not being settled fairly.

“We’re growing very tired as an industry of being picked on by the plaintiff’s bar,” Spear said. “I think we’re growing very tired of padding the pockets of trial lawyers at the expense of trucking jobs, and we’re just not going to stand for it anymore.” Spear claims these verdicts are an “all-out assault” against the trucking industry, and therefore, ATA should be positioning itself to fight back.

Spear told Transport Topics Radio that he believes the number of lawsuits against the trucking industry is increasing as attorneys who specialize in these kinds of lawsuits are amping up their advertising. These are what he calls “nuclear” lawsuits.

He claims these “massive” suits come against the trucking industry regarding incidents that “are clearly not [its] fault,” and that trial lawyers in these particular suits are working a false narrative that the industry is “devastating the fabric of families involved in these accidents,” which he claims are usually not at the hands of truckers.

However, as any individual who has learned of any trucking-involved accident knows, this is clearly not the case.

We recently wrote about a historic “underride accident” case that comes after a slew of these accident reports over the past few years. Underride accidents take place when a car slides underneath a tractor trailer, and is one of the deadliest types of accidents on U.S. roadways.

The particular case referenced occurred when a family was awarded $42 million in a lawsuit against trucking company Barkandhi Express and Utility, when 16-year-old Riley Hein’s car became trapped under the side of a trailer made by Utility Manufacturing Company, causing the truck to drag Riley’s car for a half mile until it caught on fire, killing Riley immediately.

Trailers are not currently required to have side guards, even though the trucking industry has admitted in trial that over 200 people a year die in underride accidents.

The Truck Trailer Manufacturers Association says adding the weight of new guards to trailers would require companies to add more tractor trailers onto the roads, which it says would be more of an inconvenience than a safety benefit.

What is worse–documents revealed in Riley’s case show the TTMA asking major trailer manufacturers to provide detailed information regarding side guard costs so that the association could be able to potentially develop defense strategies against future underride lawsuits.

Still, Chris Spear and the American Trucking Associations have been handpicking cases to highlight only what they hope will gain public traction in opposition of lawsuits against the trucking industry.

Spear brought up a particular case in his Transport Topics interview, which occurred in 2014 and involved a pickup truck crossing a median and colliding with a tractor-trailer on a Texas interstate. The family of the pickup driver argued in court that the trucker should have pulled over due to inclement weather conditions, and the jury awarded them close to $90 million. The carrier, Werner Enterprises, is still working to appeal this decision.

“We’re paying substantial money to make [verdicts like these] right, and this [legal] profession needs to be called out,” says Spear.

However, Spear isn’t giving all of the facts of the case. According to court documents, evidence shows Werner had been staying quiet in regards to its disregard for safety policies around new student drivers. Each year, Werner hires 4,000 new drivers without previous truck driving experience. The driver in this case was a student driver, who exceeded 60 mph in icy conditions. The National Weather Service had been reporting freezing rain and icy roads 12 hours before the collision, yet Werner never communicated this warning to its driver.

“Werner’s lack of basic safety systems and its inadequate training processes for students drivers–combined with the business model of assigning student drivers on expedited deliveries–is creating a highly dangerous and unsustainable dynamic on U.S. Highways,” said the family’s co-lead counsel, Eric Penn of the Penn Law Firm.

What Spear also fails to mention is that the jury had heard the extent of the evidence and made what they believed to be a fair verdict. Of course, juries can make an incorrect judgment, but even when they do make a verdict against the trucking industry, tort reform comes into play.

Tort reform limits the recoveries awarded to those harmed by trucking industry dangers. This turns out to be nonsensical, as no two cases are the same and should always be judged on their own merits, not by limits on recovery.

The American Trucking Associations feels differently. Spear says verdicts like the one in the pickup truck case have made him decide to pledge to actively work with government leaders on tort reform efforts, even though he knows the overall view on the topic may not be in his favor.

“On the federal level, the votes may not be there for federal tort reform. In fact, I know that.”

If these limits weren’t enough, we have the trucking industry going to extreme lengths to avoid admitting fault in accidents. Not only is Utility Trailer Manufacturing Company working to appeal the $19 million it had to pay for its part in the verdict of Riley’s case, but it offered the Hein family a $14 million settlement if they kept all internal documents quiet.

In another case against Werner, court documents showed the trucking company staying quiet about its disregard for safety policies in regards to new student drivers–Werner hires 4,000 new drivers a year without any previous truck driving experience.

What Spear also doesn’t mention is the fact that trucking companies and their insurers hire as expensive and prestigious law firms for their cases as possible–so, not only are jurors always making decisions based on information from both sides, but these law firms are powerful and know how to swing a case in their favor–whether or not their techniques are ethical.

If verdicts like the ones Spear mentions are so unfair, what does that say about the trucking industry’s position and their lawyers’ abilities to make a compelling argument?

Chicago Mayor Considering Upping Fees for Ride-Share Passengers

October 20, 2019 by Levinson and Stefani Leave a Comment

CHICAGO–For her 2020 budget, Chicago Mayor Lori Lightfoot is planning to possibly implement higher fees for riders of solo Uber and Lyft trips, and wants to keep rates lower for those taking a pool.

This announcement comes two weeks before her first budget address, where she will explain her plans to remedy the $838 million deficit for the city in 2020.

On many occasions, Lightfoot has discussed issuing a tax on all drivers entering certain zones in the Chicago metropolitan area in an attempt to raise revenue for the city and decrease traffic congestion. She also hinted recently that for the 2020 year, this tax may take the form of an additional fee on ride-share app passengers entering the central business district.

In her August “State of the City” speech, Lightfoot said these plans come as a way to “address rampant congestion” and to “solve the problem of traffic, pollution, and other issues while simultaneously bringing in a fair share of funding.”

Last Thursday, she told WLS-AM 890 that this new plan will likely include a break in fees for riders who opt for Lyft and Uber pooling options (where ride-share drivers pick up multiple passengers in the same direction), because those services will add less to congestion than rides transporting single-passengers.

“We definitely have heard, and we are considering, because we’ve gotten requests and input on giving a break to those folks that are using pool transportation and charging more for single-occupancy rides,” said Lightfoot. “We’re certainly looking at that.”

However, Lightfoot does acknowledge the difficulty in getting the state legislature to pass these new taxes, as lawmakers are set to meet for only six days during the fall–and for now, the focus on tax structure changes for Chicago lies primarily elsewhere. “The veto session is going to be really, really short,” she explains, “and we’ve got two very big priorities, which is casinos and a real estate transfer tax.”

Lightfoot also says she is even more skeptical about getting state lawmakers to approve the sales tax she has been aiming for in regards to high-end services.

Currently, Chicago city fees on Uber and Lyft trips come out to 72 cents per ride, plus another $5 for rides beginning at destinations with heavy traffic, such as McCormick Place, Navy Pier, and Chicago airports.

With a recent surge in driving around the city, transit rates have been flat while vehicle ownership is decreasing. Some transportation experts believe congestion pricing is an “untapped resource” for Chicago revenue.

“There are certain areas where congestion is getting intolerable,” said Joseph Schwieterman, DePaul University transportation expert. “[We] have to do something. It’s just going to get worse, and congestion pricing is well-suited for that.”

Several other large cities around the globe have found congestion pricing to be effective and lucrative, including London, Stockholm and Singapore. New York City is following suit, with fees coming into place for those traveling below 60th Street in Manhattan by 2021.

But, will fees charged to Uber and Lyft passengers work in the same way, pushing commuters to choose more public ways of transit and thus decreasing overall city traffic?

It seems to be the way of the metro-future. Los Angeles transportation officials have been working toward a tax on Uber and Lyft rides in Los Angeles County, which is part of a much larger plan to begin better managing city congestion as well as to fund transportation projects to be fully implemented before the 2028 Olympic Games.

What’s more–funds being funneled into city revenue by public transit tend to decrease when Uber and Lyft are more easily accessible. A 2018 study of travel patterns showed that 60 percent of city locals would have traveled by foot, bike, or transit if ride-hailing services had not been as available.

Los Angeles’ public transit ridership has plummeted by 20 percent over the last few years, despite billions of dollars being spent on new rail lines. Uber and Lyft are believed to be one of the biggest factors contributing to this issue, and it’s safe to assume the case is comparable to that of Chicago.

With a tax on rides that will deter solo ride-share travelers, that will also bring in revenue for city infrastructure funding, it appears these new fees will come into play much sooner than later.

Big Improvements with Volvo Driver Assist System

October 19, 2019 by Levinson and Stefani Leave a Comment

VIRGINIA – Volvo Trucks North America is implementing a new, improved driver assistance system with recognition of lane switches to avoid other vehicles, as well as an update that allows brakes to stop at a much higher speed without driver action.

Volvo Active Driver Assist 2.0 is a new collision mitigation system which utilizes both camera and radar technology to sense traffic conditions around the vehicle, maintain safe following distance, and give visual and audio alerts for the driver to take immediate action in the case of a hazard. If there is no input from the driver, active emergency braking is able to stop the truck on its own.

The safety system is now able to stop a truck–completely–at speeds up to 50 miles an hour, and will be the new standard on Volvo’s VNL and VNR series as well as an optional system on its VNX lines.

The primary version of this system, implemented in 2017, was only able to bring a truck to a stop from up to 35 miles per hour. Now, even if the truck is traveling faster than 50 miles per hour and must be brought to an emergency stop, the updated system can reduce the truck’s speed by 50 miles per hour overall, and reduce the potential damage of impact in a collision.

“If the truck is going 65 mph, it can shave 50 mph off that speed, so it is a 15 mpf crash,” said Allison Athey, VTNA’s product marketing manager for the VNL truck line.

She also said the improved driver assistance system includes an updated version of multi-lane braking with an even better ability to detect when a truck leaves its lane in order to avoid a nearby vehicle. “It always detected vehicles in both lanes, but when the truck would change lanes, it would have to take a second to recalculate and then begin to automatically emergency brake again if it was required,” Athey explained.

Now, there is no longer a need for any recalculation.

Additionally, the system now includes adjustable volume overrides for its lane-change warning capabilities, along with a new feature which allows the driver to, in particular situations, turn the system off for up to 10 minutes.

A new Highway Departure Warning and Braking function will also slow down the truck to a pre-selected speed if there is no corrective action by the driver after a lane-departure safety warning has been given, and if the system senses that the vehicle may be moving away from the drivable highway.

The system also takes advantage of new safety technology for driver awareness support, with a driver-facing camera with easy data capture, and adaptive cruise control that now includes an “auto resume” feature, also known as “slow and go.”

In other new developments, Volvo has also introduced a new steering system of its Class 8 trucks, which aims to reduce steering force up to 85% in order to help reduce driver fatigue and its dangerous effects.

This system is called Volvo Dynamic Steering, and includes an electric motor set above the truck’s steering gear. Trucks will have sensors that can measure input of over 2,000 times per second to determine steering wheel response, while also monitoring driver behavior, road conditions and environmental obstacles in order to make necessary safety adjustments.

VTNA says VDS is designed to help drivers in their ability to work around obstacles in road conditions, on everything from rugged terrain to difficult, tight maneuvers in urban areas. VDS will also include a return-to-center function, which will allow the steering wheel to return to center and help drivers better handle maneuvering in narrow spots or while in reverse. It will also have a new “lead/pull compensation” capability, which will provide a torque offset in its steering system to help navigate crowned roads, crosswinds, and other tricky conditions that can temporarily negatively impact driving.

These new features went into production in mid-September, and, according to Athey, will continue undergoing improvements until the end of next year. VDS will be available in early 2020 and Active Driver Assist 2.0 will become standard on 2021 VNL and VNR models.

Volvo plans to work toward a goal of having zero Volvo truck-related collisions, but is counting on customer cooperation, according to Ash Makki, VTNA’s product marketing manager for technology. “This is something we have been working on diligently for years, but it is a goal that we can reach by ourselves,” he explained. “We can build the best active safety features, but if my customers don’t buy into it–see the value–is that going to work? So we have been pushing hard to our customers right now.”

Makki also says all of Volvo’s safety features are standard, but not mandated. “So the customer has an option,” he assured. “But, we have been telling our customers, ‘Why would you even think about doing that?’”

“Providing state-of-the-art features that improve drivers’ physical working conditions and comfort is an important aspect of driver satisfaction,” added Chris Stadler, VTNA product marketing manager, “as well as increasing overall productivity and road safety.”

Uber Freight: What does it Mean for Truck Drivers?

October 18, 2019 by Levinson and Stefani Leave a Comment

For trucking industry employees, commercial trucking can bring many difficulties. From month-long waits for payments, rate negotiations, and problems tracking data, the industry itself can be overly costly and inefficient.

Enter Uber Freight: an app introduced by Uber in 2017, which lets both drivers and owner/operators claim shipments easily, right on their mobile devices.

Here’s what it does: in an era of truck driver shortage, the app aims to motivate more workers to enter this career path by making load-matching easier. Although there are currently other apps out there with similar capabilities, Uber Freight is meant to allow drivers to book shipments without a middleman.

It also has fixed rates with instant confirmation, seven-day payment guarantees for drivers (as opposed to common 30-day guarantees in the industry), tracking tools, and customizable preferences.

Because Uber Freight drivers can book their own loads any time through the app, they no longer need to worry about rate negotiations or having to communicate with shippers over the phone or by fax. They also have quick access to trusted shippers–therefore giving them more overall control and convenience in their careers.

So, how does insurance for Uber Freight drivers work?

As is the case right now for most rideshare app drivers, Uber Freight drivers must cover damages of an accident (should they be at fault) from their own insurance. Uber Freight drivers are required to have a plan with at least $100,000 in liability coverage for their cargo as well as $1 million for the truck itself. Although this coverage could potentially pay for damages in an Uber Freight-driver-caused accident, Uber itself would not be liable, as drivers are not hired as employees, but as independent contractors.

Because of this, the driver would take on all responsibility for the accident and damage coverage–something that is not always the case with other commercial truck drivers.

What does this mean for innocent drivers involved in the crash?

Because the insurance would generally cover the truck and its cargo, there is no guarantee that car damage or even hospital bills would be fully covered should the other driver be hurt.

However in “fault car accident” states, such as California, at-fault parties can include maintenance crews or even the city for unsafe roadways, as well as the truck manufacturer itself. An Uber Freight driver’s coverage would only pay for the damages caused by his or her own actions.

This could change soon, though. We reported recently on a new California law that is upending both Uber and Lyft by requiring drivers to be classified as official employees, rather than independent contractors.

California Governor Gavin Newsom just signed legislation that will change the business models of rideshare apps in order to allow gig economy workers to be reclassified.

The new law is predicted to have an enormous impact on the American workforce–especially when over 1 percent of laborers work for Lyft or Uber a number which also includes Uber Freight truck drivers.

Once the law becomes active in January 2020, all drivers for these companies will be allowed to work as employees and will have access to a minimum wage, unemployment benefits, disability insurance, and union rights.

Although it is currently unclear how exactly Uber Freight drivers’ benefits will function under the new legislation–as it exempts groups of workers who set their own rates and hours–it can be assumed these truck drivers will have benefits in alignment with their rideshare driver counterparts.

However, after the bill was passed this month, Uber began pursuing “several legal and political options” to continue classifying its drivers as independent contractors, saying their “work is outside the usual course of Uber’s business.”

Uber says this is possible because it claims its drivers pass the ABC test: A) Drivers are free from company control and direction; B) Drivers’ work falls beyond Uber’s usual business; C) Each driver is working as an independent business.

Whether or not their claims will prove Uber drivers exempt from the new law has yet to be decided.

Gig Workers Rising, an organization that has been campaigning in favor of the bill and aims to support and educate rideshare drivers, delivery drivers and couriers, continues to fight for workers on these career paths in order to help them gain better wages, working conditions and opportunities.

Insurers Just Starting to “Eye” Safety Technologies

October 17, 2019 by Levinson and Stefani Leave a Comment

New safety technologies–like collision mitigation systems, onboard cameras, and telematics, to name a few–are capturing the attention of the insurance industry as motor carrier companies work to handle increasing insurance premiums.

These technologies can help reduce or completely eliminate costly losses for fleets and keep all drivers on the road much safer, and have been used by trucking companies in Europe for years.

Both primary and excess liability underwriters are saying safety tech will play a huge role in reducing catastrophic losses, but Todd Reiser, vice president of the transportation practice at Lockton Cos., says underwriters are still “under a ton of pressure” to remain profitable.

So, does this play a part in why safety technologies haven’t yet been widely utilized across the U.S.?

Reiser says many large motor carriers who use collision mitigation systems can point to their own safety data in order to show “a significant drop” in rear-end collisions.

Additionally, with driver-facing cameras, driver behavior can easily be monitored.

“When drivers know a camera is in the cab, they know whatever they do could potentially be reviewed.” These cameras could also possibly excuse a fleet from liability, Reiser explains.

Craig Dancer, transportation industry practice leader at insurance broker Marsh USA Inc. says key issues are reducing costs while at the same time keeping drivers safe, and that this comes down to having a safer operation.

“If you don’t have claims, your insurance costs come down and you avoid driver injuries,” he says.

Practice leader at insurance broker TrueNorth Cos., Bill Zenk, says safety technologies are allowing motor carriers to collect data straight from their cabs, “to coach better driver behavior as well as point-of-contact data to mitigate the cost of an accident.”

Peggy Killeen, director at Napa River Insurance services, weighs in on the benefits as well. “We have seen a high correlation between implementing safety technology and reducing the number and severity of accidents,” she says. “Specifically, vehicles equipped with crash avoidance systems have shown to be a valuable resource as it relates to lane change and merging accidents.”

With all of these positive aspects, why would it be taking so long to get this tech regularly implemented in our fleets?

“’Nuclear’ verdicts, defined as jury awards in excess of $10 million, are becoming more prevalent, especially in the trucking world where higher liability limits are often purchased,” explains director of underwriting for transportation at Sentry Insurance, Randy Ramczyk. “Plaintiff attorneys are now engaging in litigation financing where an unrelated third party provides financing to the plaintiff in litigation in return for a portion of any financial recovery from the lawsuit.”

American Trucking Associations second vice chairman, Garner Brumbaugh, agreed with this explanation, claiming that trucking companies are beginning to go out of business “because of very aggressive trial lawyers.”

However, the reason trial lawyers are winning cases against companies in the trucking industry is because the industry’s safety standards are nowhere near where they should be, and juries are agreeing.

Because of this, it appears there should be zero hesitation in utilizing these new safety technologies to their full capacities in as many vehicles as necessary.

“Common sense would dictate that technology can and will help minimize the number of commercial trucking accidents,” says Sentry’s Ramczyk. “Rear-end collisions along with lane-change accidents are the most frequent and severe causes of loss in the trucking industry. This technology can help eliminate, reduce or alleviate these types of losses that can result in significant bodily injury or death.”

Luckily, Ramczyk says in-cab camera systems and advanced collision mitigation systems are becoming standard on many new trucks. However, many insurers are subsidizing the hardware to install in vehicles rather than providing discounts to those using a specific technology.

“The insurer is betting that their investment in safety technology will be paid back over time based on their insured’s improved loss experience,” explains Dancer of Marsh USA Inc.

Additionally, Ramczyk says, premiums are increasing across the industry “and will continue to do so until loss costs stabilize,” so it appears trucking companies will not begin to widely implement safety tech until insurance costs decrease, but costs won’t decrease until safety tech is much more common and largely effective.

For now, we’re at a slow-moving catch-22.

Modern Safety Technology has Huge Effects on Trucking and Insurance

October 17, 2019 by Levinson and Stefani Leave a Comment

As new safety technologies become more and more prevalent in the trucking industry and regulations continue to change, insurance costs for motor carriers increases steadily.

Some of this new tech, like avoidance systems, collision mitigation, and onboard cameras, aim to help motor carriers cut out common expensive losses and monitor the behavior of their drivers while on the road.

But how are these technologies affecting insurance companies’ underwriting processes?

Pricing is typically based around individual trucking company losses and general trends in the industry. “Rate increases have ranged from single digits to, in some cases, double or worse depending on these factors,” says Todd Reiser, vice president of the transportation practice at Lockton Cos.

If companies aren’t able to choose from multiple insurers within commercial auto liability, they end up having much higher costs that affect premiums. Additionally, trucking litigation has become much worse over the last few years.

“Jury awards in excess of $10 million are becoming more prevalent, especially in the trucking world where higher liability limits are often purchased,” explains director of underwriting for transportation at Sentry Insurance, Randy Ramczyk.

The maximum amount of coverage a primary liability policy usually covers before excess coverage is $5 million, which varies below that number. Some fleets buy a policy with minimum limits around $750,000 or $1 million, while large fleets generally go for a policy that offers a higher limit, typically up to $5 million, Reiser says.

However, Garner Brumbaugh, second vice chairman of American Trucking Associations, says she hasn’t been in the “open” insurance market for the past 18 years, because she uses her own insurance company through a “captive”–a system where members focus on a culture of safety.

According to Reiser, both primary liability and excess liability underwriters keep in mind that safety tech has major effects in reducing large losses, and are “under a ton of pressure” to remain profitable.

“It is difficult to measure the exact impact of accidents that have either not happened at all or have been substantially mitigated by these technologies, especially for fleets that are largely self-insured,” he says. He also explains that motor carriers such as these are able to use their own safety data to show a significant drop in rear-end collisions for trucks with collision mitigation systems.

“Only the most financially stable carriers will see value in continuing to buy high levels of excess insurance,” says Reiser.

Additionally, new safety tech is now allowing motor carriers to gain data straight from the cab–not only to improve driver behavior, but to mitigate the cost of an accident. For example, driver-facing cameras have been extremely helpful in avoiding accidents and correcting unsafe behaviors.

“When drivers know a camera is in the cab, they know whatever they do could potentially be reviewed,” says Reiser. Cameras can also help a fleet be exempt from liability, because they can be used to determine who is at fault in a collision.

Other tech, like crash avoidance systems, equip vehicles with a resource to reduce accident severity–especially in lane change and merging incidents.

Because of circumstances like these, some insurers are now establishing prerequisites, meaning they are only considering risks that use particular technology, including camera systems and collision avoidance.

Another widely-used new tech changing the insurance game? ELDs.

Since 2017, electronic logging devices have been mandated in commercial trucks. If a carrier goes without ELDs, insurers will typically not agree to write that particular risk.

Brumbaugh says ELDs are doing well at making the industry safer overall. “The challenges will be the learning curve, which takes time after full implementation,” which will go into effect this December.

Sentry’s Ramczyk says camera systems and collision mitigation systems are becoming the most effective in regards to safety, though. “Common sense would dictate that this technology can and will help minimize the number of commercial trucking accidents,” he says.

Insurers are now paying for hardware installation like these in certain vehicles, especially with systems like cameras, instead of providing discounts to companies for using them.

Craig Dancer, transportation industry practice leader at Marsh USA Inc. says this is to be expected. “The insurer is betting that their investment in safety technology will be paid back over time based on their insured’s improved loss experience.”