Freight Carriers Association / North American Transportation Council
June 1996
FCA/NFTB is presently conducting three important benchmarking surveys. Benchmarking is beneficial to those who wish to become or remain an industry leader with a competitive focus. A brief explanation of the surveys follows:
Customer Service/Satisfaction Survey: This four part survey is being conducted jointly with Niagara University’s Transportation and Logistics Management department. The survey covers quality, on time performance, billing accuracy, and loss & damage. We have already received over 60 responses to the survey. All survey participants will receive free of charge a copy of the results comparing their company with the aggregate.
Compensation Survey: The first category of employees being studied are sales representatives within Ontario and Quebec (by region). This survey will allow you to determine:
Maintenance Cost Survey: The cost of maintaining and replacing equipment in Canada has been skyrocketing since the adoption of the “Zero Tolerance” policy in Ontario and tougher standards throughout Canada. As an industry we need to know the impact this is having on costs.
All individual carrier responses will be held in strict confidence. If you would like additional information regarding these surveys please contact Dave Sirgey at (905) 994-0560 ext. 214.
The Quebec Ministry of Transport has developed a plan to “manage” truck traffic on the province’s roads. The plan prohibits trucks on some roads and restricts them on others. The purpose of the plan is threefold: (1) Direct heavy vehicles to certain roads to minimize infrastructure deterioration and inconvenience to other roads; (2) Make it easier for municipalities to manage heavy truck traffic and to deal with noise and pollution; and (3) Give priority to improving trucking service on designated highways.
Using a color coding system, new Quebec provincial road maps show the restrictions and prohibitions. These maps will also show which border crossing that trucks will have to use.
CARRIER LIABILITY REMAINS A HOT TOPIC IN THE US
One of the more contentious issues that has emerged from the recent US trucking deregulation legislation is that of motor carrier liability. It is unfortunate that wording in the ICC termination Act concerning motor common carrier liability fails to clearly convey the intent of the law.
The liability debate centers on whether or not carriers can limit their liability to a certain amount ($50 per pound, $2.50 per pound, etc.) without having the shipper agree in writing to the limited liability.
Though it is known that the law intended to allow limited liability without specific shipper agreement or notice, the language of the law sparks debate between shipper and carrier advocates that will continue until court decisions ultimately sort it out.
With no current “legal” answer to the question, what should be done? Both shippers and carriers are being advised to avoid problems by observing good business practices. If a carrier has limited his liability, in his rules tariff for instance, then effort should be made to make his customers aware of the provision. Similarly shippers should inquire about liability provisions and not assume that full liability applies. Good business practices will avoid surprises for all concerned.
A flyer, which provides an overview of the policy, signs, definitions, and fines, is available from the Direction du Transport Multimodel @ Phone: (514) 873-2605 or FAX: (514) 873-4730.
SOUTH DAKOTA SALES TAX ON TRANSPORTATION
Effective July 1st, the four percent sales tax on transportation will be imposed when the property origin and destination is within the state. This tax is to be paid by the shipper, but it is the responsibility of the motor carrier to collect the tax and remit it to the state.
A concern arose last year that the state would tax the in-state transportation movement of an interstate LTL service when the power equipment was changed at a terminal or the freight was unloaded. This was the initial opinion by the state’s Department of Revenue,
However, a recently issued opinion letter reverses this position. The Department of Revenue has taken a common sense approach, holding that where the movement of freight is only subject to a “brief interruption,” the freight remains in interstate commerce and the sales tax does not apply. The Revenue Department listed several factors which constitute only a brief interruption.
This reflects the well established law that goods remain in interstate commerce, not-withstanding that they may come to rest to accommodate the transportation needs of the shippers or carriers. On a separate front, the South Dakota Farmers Union has succeeded in collecting 19,000 signatures on its petition to repeal, by ballot initiative, this tax. This initiative will now be voted on in November, so the tax will become effective on July 1st, but could be repealed entirely later on.
Source: RCCC Newsletter