New Entrant Motor Carrier Pilot Program
| Entry Date | July 3, 2024 |
|---|---|
| Issue Number | 24-037-PRA |
| Name | Steve Keppler |
| Agency | Scopelitis Transportation Consulting |
| Address | 4601 N. Fairfax DriveSuite 220ARLINGTON, VA, 22203United StatesMap It (opens in a new tab) |
| Phone | 2027282852 |
| [email protected] | |
| Committee | Policy and Regulatory Affairs Committee |
| Status | Closed |
| Summary of Issue | As new motor carriers enter the trucking industry in record numbers, more needs to be done to ensure they operate safely on our roadways. Oftentimes, new motor carriers suffer from a lack of knowledge and minimal experience in motor carrier safety and compliance. Unfortunately, some new entrants are getting into the business for the wrong reasons. Like many large programs, there comes a time when changes are necessary to address industry trends and operational realities. We are at this critical juncture with the NESA program. We must act to improve its efficiency for the states and FMCSA and, ultimately, provide a better product to the CMV industry. Doing so will not just help new entrants chart a course for safety, it will also keep the bad actors from operating in an unsafe manner on our roads and who are not committed to doing things right. |
| Justification or Need | In 2022, the States and FMCSA conducted 62,162 Safety Audits on new entrant motor carriers, of which 92.4 percent passed and only 62.2 percent were completed on time. That year, there were 171,325 total new entrants. While the number of new entrants decreased slightly in 2023, the number is still significant by historical measures. For example, the monthly average for new entrants for hire carriers has gone from 5,203 in 2019 to 13,431 in 2022. The rapid increase in new entrants has consequently led to a rapid overall increase in the for-hire interstate carriers, from 541,231 to 763,867, a 41.1 percent jump. This carrier expansion is occurring while resources for federal and state agencies are limited, with the number of state and federal safety inspectors decreasing from 13,839 in 2018 to 12,591 in 2022. At the same time, the percent of total fatal crashes involving New Entrant Motor Carriers is increasing, from 4.6% in 2017 to 7.4% in 2022 – a 61 percent increase. The data also shows carriers operating within 24 months of “graduating” from the new-entrant program had twice as many total crashes and nearly twice as many fatal crashes per 100 power units as established carriers. |
| Request for Action | That CVSA work with the states and FMCSA to design, fund, and implement a Pilot Program and conduct and independent evaluation to assess how implementing certain changes would help advance motor carrier safety and compliance, help to educate new motor carriers, and to assist and support the states in delivering the program in an efficient and effective manner. Please see attached White Paper for more details and suggestions as to what potential changes could be included in such a Pilot Program. |