
When a motor carrier receives a conditional or unsatisfactory rating from the FMCSA it means you haven't met the safety requirements and stipulations under FMCSRs.
What's that cost?
➡ Carriers with conditional or unsatisfactory ratings are subject to increased regulatory oversight, frequent inspections, audits, compliance reviews, etc.
➡ Motor carriers with unsatisfactory ratings may be issued out-of-service orders, which prohibit their vehicles from operating until violations are corrected.
➡ Carriers with conditional or unsatisfactory ratings can face fines and penalties for violations and non-compliance with regulations. These fines can be substantial. We've seen a fine as high as $51 million.
➡ Increased premiums as they're seen as higher risk. This can lead to higher operating costs for the carrier.
➡ Shippers and customers prioritize safety when choosing carriers. A poor safety rating can make it challenging for a carrier to attract new business and maintain existing customer relationships. As a broker, I ran your rating first. Conditional rating and you didn't get the work.
➡ A conditional or unsatisfactory rating can seriously damage a carrier's reputation. Negative publicity can make it difficult for the carrier to rebuild trust and credibility.
➡ Carriers with poor safety records, processes, and programs often face exposure from lawsuits by individuals or entities affected by accidents or incidents involving their unsafe drivers or vehicles. We've seen $1 Billion dollar verdicts for this.
➡ To improve their safety rating, carriers may need to invest in safety improvements, training, and equipment upgrades. These compliance costs can be significant.
➡ Drivers working for carriers with conditional or unsatisfactory ratings may face increased scrutiny, and drivers may be subject to more frequent roadside inspections due to higher ISS scores which can be stressful and time-consuming with more downtime.
If you need guidance on your processes, programs, ratings, scores, or how to request a rating upgrade, contact Brandon Wiseman at Trucksafe Consulting, LLC and he and his team can get you back on the right path or help get you started the right way from day 1.
Comments