Trucking Industry

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.”

Underride Accidents Forcing Trucking Companies to Improve Safety Standards

October 13, 2019 by Levinson and Stefani Leave a Comment

WASHINGTON – After a multitude of ‘’underride accident” reports beginning back in 2017, a historic case–with the largest verdict against a trucking company for such an accident–is revealing findings regarding how the trucking industry quietly fought against safety measures, despite having knowledge of the risks, for over a decade.

Now, this case could mean big changes for how drivers are protected.

Underride accidents occur when a vehicle ends up sliding underneath a tractor trailer–an event which can crush or even decapitate the driver and passengers–making it one of the deadliest kinds of accidents on American roadways.

When WUSA9 investigated a particular underride accident which killed a teenage boy, they discovered the family was awarded $42 million in a lawsuit against trucking company Barkandhi Express and Utility.

16-year-old Riley Hein’s car became stuck under the side of a trailer–made by Utility Manufacturing Company–after careening off of an embankment on a New Mexico interstate in 2015.

Riley’s father, Eric Hein, told the news source that the truck “drug [Riley’s] car for a half a mile until it caught on fire and Riley burned to death.”

The lawsuit cited negligence, stating that Barkandhi Express should have had a side underride guard which would not have allowed any car to get lodged below its trailer.

Currently, trailers are not required to have side guards, which were designed in order to prevent smaller vehicles from sliding underneath an 18-wheeler, even though the trucking industry has admitted in trial that over 200 people a year are killed in underride accidents.

However, although it may have seemed Riley’s case itself would have made a difference in trucking safety regulations–especially considering its huge payout–documents from the trial showed that the trucking industry has been working against the utilization of side guards for a lengthy period of time.

One document showed the Truck Trailer Manufacturers Association asking major trailer manufacturers for detailed information on side guard costs so that they could potentially be able to develop defense strategies regarding underride lawsuits.

The Association has also said that adding the weight of new guards onto trailers would make it necessary for trucking companies to add even more tractor trailers onto roads, which it claims would cancel out any safety benefits.

Right now, the only underride protection required by law are rearguards, which are often useless in accidents.

Because of this, United States Senator Kirsten Gillibran is working to bring in bipartisan legislation that would demand underride guards on all sides of semi-trucks, including updates to current rearguards.

Additionally, a petition started by mothers in 2018 has gained traction after a large number of underride accidents occurred the year prior, and works to take action in the fight for semi-truck safety and to gain attention in Capitol Hill. The two moms who began the petition both lost children in underride accidents. They also were successful in their lobbying attempts to have bipartisan legislation introduced in December of 2017.

Advocates for truck safety changes are hopeful that verdicts, such as the one in the Hein case, will be the most powerful way to instigate updates and push this legislation through.

“These are the things that ultimately result in the eight-figure verdicts which can push a motor carrier into bankruptcy,” said Andy Young, a previous truck driver now representing families of accident victims working toward lawsuits.

Unfortunately, Riley’s case hasn’t ended up with that particular outcome.

Utility Trailer Manufacturing Company is working to appeal the $19 million it had to pay for its part in the verdict, as it has already gone out of business.

Riley’s father tells WUSA9 his family doesn’t care about the money as much as it wants the trucking industry to be held responsible for these accidents.

“He’d be proud of us,” Eric Hein said of Riley. “He’d want us to go on. And we will.”

Although Hein acknowledges the appeal could now take years, Utility has offered the family a $14 million settlement–but only if the Hein family keeps all internal documents quiet.

Riley’s father declined the deal in order to keep the case public, in hopes it will be a turning point in finally improving big rig safety regulations and keeping drivers safer on the road.

Grieving Families Fight Against Hours-of-Service Flexibility for Truck Drivers

September 30, 2019 by Levinson and Stefani Leave a Comment

WASHINGTON – The proposed flexibility in safety rules for truck drivers–which would allow extended duty time and less-strict mandatory break time–has some families remembering truck accident-related heartbreak.

Linda Wilburn, an Oklahoma mom, was waiting for 19-year-old son Orbie to stop by the house to pick up some belongings to take back to his new rental, just 10 miles away. While heading east on I-40 from Weatherford, traffic was stalled. There, Orbie Wilburn and his 1994 Camaro were crashed into from behind by a big rig speeding down the eastbound lanes. Orbie Wilburn was killed at the scene.

The truck driver–a 41-year-old from Kentucky–also died upon impact. According to Linda Wilburn, he had driven 1,300 miles from Bakersfield, California “without a rest break at all.”

Now, Orbie’s family is finding themselves fighting against the Trump administration’s new proposed flexibility regarding rest time for truck drivers, after the hours-of-service rules were formally introduced by the Federal Motor Carrier Safety Administration on August 20th.

The new plan would allow drivers to divide mandatory 10-hour rest time up into 5-5 or 6-4 hour split, meaning that they would have complete control over how they use that time, whether they are resting or not.

The proposal would also extend driving time by two hours for those working in any conditions that could be considered “inclement weather;” it would also lengthen the maximum on-duty period from 12 to 14 hours.

Of course, there are two sides to the proposal.

Those against the possible new regulations, including highway safety organizations and grieving families like the Wilburns, point out government data showing deaths from crashes involving large trucks hitting a 10-year high in 2017.

On the other hand, commercial drivers and trucking companies are among those in favor, and believe the current rules in place for truckers are too restrictive and don’t allow for common business concerns. Although the data show an increase in truck-involved crashes, they also show a decrease in the rate of large truck-involved fatalities based on number of vehicle miles traveled.

The National Transportation Safety Board has been focusing on fatigued driving, and says it is more of a serious issue than statistics depict. The agency has deemed the reduction of fatigue-related accidents as part of its ‘Most Wanted List’ of safety improvements for 2019-2020. “Drowsy driving does not leave telltale signs,” it says. “It is widely believed to be underreported on police crash forms.”

It was also reported by FairWarning in 2015 that the trucking industry had some heavy spending behind congressional lobbying and contributions to campaigns while pushing for more flexibility for trucking companies and drivers.

“These [proposals] are opportunities for drivers to be pushed to their limits further, to drive without resting,” says Harry Adler, executive director of the Truck Safety Coalition. “It’s more [of an] opportunity for a driver to operate while fatigued, which is really detrimental.”

Adler says these proposals are a way for the trucking industry to exploit their drivers for their own gain. “How does one say that telling a truck driver, ‘You’re going to work a longer day,’ improve safety?” he asks.

The Truck Safety Coalition has witnessed the severe emotional damage of families like the Wilburns who have lost loved ones in fatigue-related crashes–many of these families now testifying before congress. These include a Florida mother who lost her 23-year-old son and daughter-in-law when a semi-truck driver fell asleep at the wheel, as well as a Maryland father who lost his wife and whose son was permanently disabled after a triple-tractor trailer driver fell asleep on the Ohio Turnpike.

If the government’s proposals “are going to keep the highways as safe as–or safer than–they currently exist,” the American Trucking Association needs to take time to do more research, Dan Horvath, vice president of ATA safety policy, said in an interview with FairWarning. “We are not quick to give an immediate response. We really do take the time to do a thorough review, to work with our members.”

Norita Taylor of the Owner-Operator Independent Drivers Association says no scheduling regulations are perfect for all commercial drivers. “The trucking industry is very diverse,” she says. She also points out that while drivers have to obey hours-of-service rules, clients and customers don’t. In fact, they often make reasonable work windows impossible for drivers. “Shippers and receivers can keep them waiting as long as they want, and they do,” she says.

Regardless, families like the Wilburns continue to fight against higher probabilities for driver fatigue.

“I vowed early on–the first few days–if there was anything that I could do to prevent this from happening to one other family, I would do it,” said Linda Wilburn. She is now a board member for Parents Against Tired Truckers, which is part of the Truck Safety Coalition.

Self-Driving Trucks to be Tested on Virginia Roads

September 23, 2019 by Levinson and Stefani Leave a Comment

VIRGINIA – In a partnership with Torc Robotics, Daimler Trucks will now be testing highly automated, heavy-duty trucks across highways in Virginia.

According to a September 9th press release, the two companies said they are currently actively developing and testing these trucks with SAE Level 4 intent technology on public routes in southwest Virginia, where Torc Robotics headquarters are located.

After months of testing and safety validation on closed-loop tracks, these public test runs of self-driving trucks will require an overseeing engineer and a highly-trained safety driver–who must hold commercial driver’s licenses and be specially trained in both vehicle dynamics and automated systems.

“We understand the needs of the industry,” Martin Daum, Member of the Board of Management of Daimler AG, said in the release. “Bringing Level 4 trucks to the public roads is a major step toward our goal to deliver reliable and safe trucks for the benefits of our customers, our economy and society.”

This announcement comes just months after Daimler agreed to acquire a majority stake in Torc–deeming Torc Robotics an official part of the new Autonomous Technology Group of Daimler Trucks, and allowing for these innovations.

Now, the truck manufacturer is consolidating its activities regarding automated driving globally–including within Torc’s locations in Blacksburg, Virginia as well as in Portland, Oregon and Stuttgart, Germany.

The Level 4 automated driving capabilities will allow trucks to drive themselves without needing a driver to monitor or engage–in certain conditions.

Torc’s system for automated driving, called ‘Asimov,’ has been tested throughout urban and long-distance routes in all weather conditions–including, rain, snow and fog.

“Our whole team is thrilled to be working alongside our Daimler colleagues as we pursue the commercialization of Level 4 trucks to bring this technology to the market,” said Torc Robotics CEO Michael Fleming. “We strongly believe it can save lives.”

The goal for these automated trucks is to eventually be able to haul freight on open highways between hubs.

The Level 4 test trucks are Freightliner Cascadia models complete with Torc’s self-driving capabilities, lidar sensors, cameras, and radar. During the tests, they will also pull weighted trailers to simulate carrying a load.

Daimler Trucks North America (DTNA) plans to evolve automated driving technology and vehicle integration for heavy-duty trucks. It is currently working on a truck chassis for automated driving, “particularly the redundancy of systems needed to provide reliability and safety,” the release stated.

DTNA will also be building an infrastructure to support Level 4 testing–which will include a control center and logistic hubs, located along high-density freight corridors where customers can operate near interstates and highways.

While Daimler continues with Level 4 automated driving, it will continue the process of integrating Level 2 technology, which aims to automate both lateral and longitudinal control while still requiring driver engagement.

DTNA will also continue offering active steering capabilities through its Detroit Assurance safety tech and Active Lane Assist by including automatic lane-centering and lane-departure protection features. This safety tech is projected to become more widely available early next year.

“As we pair Daimler’s expertise in building safe and reliable trucks with Torc’s genius in engineering Level 4 vehicles, we have no doubt we will do great things in the future,” said Daimler president and CEO Roger Nielsen. “We look forward to writing history together. The U.S. highways are the perfect place to develop automated technology.”

With the number of trucks on the road consistently growing but fewer people entering the profession, truck-driving continues to be stressful and often monotonous. “There is a long-term need to rethink,” Daimler says on its website. “Firstly, in order to increase the safety of all road users through the use of intelligent technologies. Secondly, in order to take pressure off the drivers and make their job more attractive by assigning them other tasks. Last but not least, the total cost of ownership (TCO) plays an important role in the transport industry.” Daimler claims the high degree of automation further lowers the TCO.

These public road tests are a significant step in Daimler Trucks’ 570 million dollar investment to bring highly automated trucks to global roads within a decade. Daimler says in this effort, it will be following its three most important beliefs: that “safety has absolute priority; everything must be 100% reliable,” that it must continue to develop “products together with its customers,” and that “a clear and legal regulatory framework for operation and liability is needed.”