A new Federal Motor Carrier Safety Administration rule establishes procedures for issuing out-of-service orders to “reincarnated” motor carriers in order to ensure that carriers who have a proven history of unsafe operations are not able to evade regulation by simply forming a new company or obtaining new registration.
The rule is in response to the discovery by FMCSA that a number of motor carriers were submitting new applications for registration, often under a new name, in order to continue operating after having been placed out of service for safety-related reasons, to avoid paying civil penalties or to otherwise avoid a negative compliance history, FMCSA said.
“Other motor carriers attempt to avoid enforcement or other consequences associated with a negative compliance history by creating or using an affiliated company under common operational control. They then shift customers, vehicles, drivers, and other operational activities to that affiliated company when FMCSA places one of the commonly controlled companies out of service,” it said.
The new rule from the FMCSA will hopefully end the “shell game” that many of these “chameleon carriers” have been playing for far too long. Not only do these carriers have histories of failing to comply with regulations and standards, but as you point out, the reincarnation practice also helps them avoid paying penalties or damages. We hope that this rule helps keep unsafe companies off the roads and also ensures all carriers can be held accountable for wrecks involving their vehicles.
We can only hope so. It’s encouraging to see some action being taken. Carrier reincarnation has been an issue for some time now and a thorn in the side to all of the companies that operate aboveboard and in an ethical manner. Kudos to the FMCSA for finally making a move on this…