No matter what size fleet you run, whether owner-operator or large fleet, you need to stay on top of your vehicle registrations. This problem becomes more acute the more vehicles you operate. Consider that there is an old adage that “what gets measured, gets done.” Because it is very simple, when you measure and monitor something, you keep it clearly in focus for you and your people.
The problem comes when you find deviations in your processes because you are not effectively monitoring your parts, truck drivers, systems, policies, or procedures. Living in the world is all about monitoring important aspects of your life. After all, do we not monitor our credit, banks accounts, healthcare, and other important information? Of course, you do. The same holds true for your fleet operations.
And if you are a small trucking company, consider the ramifications of not staying on top of your DOT registrations. If you get caught with a violation, it could be crippling. You simply cannot afford to find out if you have missed something important after the damage is already done. That’s why effectively monitoring your DOT registrations allows you to catch changes to your filings before you get hit with a violation or, even worse, taken out of service. The question now is, what should you monitor?
Key Tips for Effective Monitoring
Want to know what the most common non-safety related violation is? Not providing the FMCSA with timely updates where registration or other necessary reporting mechanisms are concerned. And the things is, getting hit with this kind of violation is easier than you may think. Consider that you are required by the DOT to complete a biennial update cycle. What if a move has occurred? Your updates may go to the wrong address.
You also want to monitor specific vehicle information, including the number of vehicles you have and the number of miles each vehicle has traveled. This is a must because the number of power units and the number of miles traveled each year directly factor into two of your seven BASIC score categories. Because the more vehicles you have in your fleet, and the more miles they travel, the greater the chances an accident could occur. If you accurately monitor miles traveled and vehicle count, you can ensure you have all your ducks in a row before the worst happens.
You also want to regularly check your insurance status. All fleets must have liability insurance in place or be able to demonstrate they are covered under an adequate level should there be an accident. Whether you are a passenger hauler or haul hazardous cargo, you need to make sure you have adequate coverage should the FMCSA come calling.
There are also occasions where your insurance might be unexpectedly canceled. Remember, if it is canceled, the insurance provider will notify the FMCSA. As a result, you need to make sure you stay on top of it and get new coverage, otherwise an audit may uncover the problem and you may be stuck with a violation.
Keep an Eye on Process Agents
Do you know what a process agent is? Process agents act as a fleet’s “statutory agent.” This individual essentially acts as a conduit between legal authorities in other countries, the insurance provider, and the motor carrier themselves. This way if a court action is required in the jurisdiction where an accident or violation occurs, the agent can act as an intermediary between the courts and the motor carrier.
Each government designates process agents for for-hire or passenger carrying motor carriers. Private fleets operating in the U.S. and transporting goods between Canada or Mexico must also file with a process agent in each country they operate in. So, no matter where you operate, if it is interstate or between countries, this is an essential part of the process you cannot forget.
Just like having insurance, utilizing process agents correctly is critical to remaining in businesses. If for any reason your trucking company loses its processing agent, your interstate operating license will be revoked.
How Do Process Agents Work?
Process agents operate by receiving the service of notices, proceedings, or other documents on behalf of a court or other governmental entity. Appointing a process agent is extremely important for trucking companies dealing with suppliers, banks, or lenders in foreign countries. In the United States another name for a process agent is a registered agent.
Process agents are required because thousands of cross-border transactions happen every year. Large corporations utilize the services of shippers to get their goods to other countries, and these shippers need a process agent in case anything goes wrong. These cross-border agreements serve as the foundation for international commerce.
While the forms required differ depending on the country, process agents are still required. And if there is one consistency from form to form, it is that a process agent must be assigned if the motor carrier is operating in that country. Before a process agent is assigned, all the parties involved must agree to the terms of the deal. Once the terms have been laid out, the process agent will quickly engage so that the transaction can be concluded before the changes occur.
How to Find a Process Agent
While almost any entity in the jurisdiction you operate in can act as a process agent, you really want to go with someone who is knowledgeable and understands the ins and outs of your industry. They need to know the various legal processes in place just in case the worst happens. Ask yourself the following questions as you seek out a qualified process agent:
- Are they available to meet when you need them?
- Do they have the bandwidth and experience to execute complex agreements?
- Can they adequately explain local compliance requirements?
- Can you trust them to receive services of process and other legal documents?
- Are they aware of the stipulations covering your international agreements?
- Can you trust them to have discretion and keep the terms of your agreement confidential?
- Will they provide you with prompt notice of receipt of any legal proceedings?
A responsive process agent is a necessary and valued business partner. When a process agent offers expanded service hours and proven infrastructure they eliminate time constraints and confusion. When you appoint a process agent, all the parties you work with can operate in confidence, knowing there will not be a mishandled judicial proceeding that could result in an expensive judgment against your company. Many industries require process agents, from industrial manufacturers to transportation and aviation firms, investment banks and commercial banking entities. Even energy and pharmaceutical companies utilize them.
The only way you can ensure you do not get hit with a registration violation is to ensure you are properly monitoring each and every registration assigned to your fleet. Even third-party monitoring services work. The point is, you don’t want to get caught by the FMCSA missing a required registration, or you may be put out of service.