Royalty Truck Insurance knows that the truck driving industry represents one of the largest work forces in the United States. There are over 3.2 million truck driving jobs in the country according to the US Department of Labor statistics and the industry is projected to grow steadily in the coming years higher than the rate of new drivers are developing.

With over three million drivers that need commercial truck insurance out there, we at Royalty have come to understand the business pretty well.  Unfortunately the trucking industry was no exception to layoffs and job closures at the dawn of our current recession—the biggest in this country since the Great Depression.  Shipping needs dropped by about 20% almost immediately with the recession, but recent statistics and quarterly business earning published by the big shipping conglomerates seem to suggest that the industry is picking back up, so much so that they are suggesting a current shortage of truck drivers.

While it’s no cause to throw a parade yet or call the recession over by any means, this is a great sign, as the earnings of trucking companies tend to go hand in hand with the fluctuation of transportation needs, and increased transportation needs tend to go hand in hand with a spiking economy.

According to an article published by Reuters this past month, UPS, CSX Corp, JB Hunt Transport and Landstar System all reported higher than expected earnings for the first quarter of 2010 that reflect improved shipping demands.
Additionally, the logistics firm FTR Associates seemed to hint at a shortage of truck drivers at a trade forum earlier this year.
“As the marketplace expands, even slowly as we are forecasting, there will be a driver shortage,” said FTR Associates representative Noel Perry. He went on to forecast a driver shortage of 180,000 truckers in 2010 and upwards of 500,000 in 2011 if the economy rebounds as expected.

A spokesman for JB Hunt alluded to experienced driver competition increasing between companies, as all major trucking companies seem to be hiring at a much higher rate than they have in the past year and a half.
“While masked by a poor economy in recent years,” JB Hunt rep Greg Smith told Reuters, “these factors, combined with fewer new entrants coming through driving school and carrier training programs during the recession, will limit the ability of the industry to add capacity.”

New safety regulations imposed by the Federal Motor Carrier Safety Administration will take effect in 2010 as well and also affect the pool of capable truckers.  Programs are in place to monitor trucker’s driving records and history, threatening fleet suspension if the company’s drivers aren’t up to par with new standards.  The plus side is that safe drivers will definitely have an impact on commercial truck insurance rates and of course, overall highway safety.

Additionally, UPS is projecting some 25,000 drivers will retire in the coming five years.  So make sure your truck insurance policy is up to date and keep your driving record safe, because all signs are pointing to increased available opportunity for a slew of qualified truck drivers in the coming months.  With an unemployment rate of about 10% still in the US, the news for truck drivers couldn’t come at a better time.

At Royalty Truck Insurance, we do our best to make sure that all of our carriers are covered in the event of an accident.  But accidents involving large trucks can be extremely serious, and though covering you and your trucks with liability insurance is essential, your insurance should only be your second line of defense against accidents; prevention and safety should be the first.  Truck safety is of the utmost importance in avoiding serious injury or fatalities associated with commercial accidents, and it is imperative for all companies and drivers to ensure they are not putting themselves in compromising positions that can increase the risk of crashes.

If you check out some of the statistics posted by the US Department of Transportation, you’ll notice that it’s shocking how many commercial truck accidents that have occurred in recent years could have been prevented. In 2005 there were over 5,000 deaths and over 90,000 injuries reported as a result of commercial truck-related accidents. In recent years with similar statistics, it has been estimated that over 20% of these accidents occurred while excessive speeding was involved.  It is important for truck drivers to obey traffic laws at all times, but probably more important for them to recognize that many drivers on the road will not.  Always be attentive to the other drivers on the road around you, and if you notice reckless drivers or speeders, drive defensively and avoid them rather than reacting toward them aggressively.

To add to the speeding statistic, roughly 5% of drivers involved in large truck accidents were excessively fatigued, and another 2% were using alcohol or controlled substances.  We always have pressure to hit deadlines and meet demand, but using substances to stay awake or trying to push through fatigue is extremely dangerous to driver awareness. 
While you may think you need to make a quick delivery to get another job or handle another account, recognize that safety is much better business than risking accidents.  Of all the accidents in 2005 that resulted in a fatality, the average cost of the truck crash was $3.6 million.  The accidents that resulted in injuries averaged a cost of almost $200,000 per crash. The average cost per crash for all accidents combined was about $90,000. No amount of business able to be gained from rushing or pushing the limits of drivers outweighs the financial risks of a crash—not to mention the priceless loss of life that occurs far too many times per year.

So being up to date with a quality truck insurance policy that covers liability is essential, but don’t let the peace of mind it grants detract from your usual safety measures.  Follow the Federal Motor Carrier Safety Administration guidelines and standards for safe driving, and always make sure that you’re staying alert and defensive while on the road.  For a truck insurance qute please contact us to visit us online for a quick truck insurance quote.

Motor carriers operating motor vehicles transporting hazardous materials, hazardous substances or hazardous wastes. For-hire motor carriers operating motor vehicles transporting property in interstate or foreign commerce. For-Hire motor carriers transporting passengers in interstate or foreign commerce. Private motor carriers domiciled in Mexico transporting property in interstate or foreign commerce.
Financial Responsibility: Having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirements   { Royalty Truck Insurance can provide you with both.  You can receive a quote online http://royaltytruckinsurance.com/?id=truck-insurance-quote or call us at Toll Free: 1-866-989-8998 }
Public Liability:  Public Liability means liability for bodily injury, property damage and environmental restoration.
Environmental Restoration:  Environmental Restoration means restitution for the loss, damage, or destruction of natural resources arising out of an accidental discharge of toxic or other environmentally harmful materials or liquids
Definitions of terms relating to FMCSA financial responsibility regulations can be seen at:
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.5.htm
and/or
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.29.htm
Requirements: Motor carriers must have at least the minimum amount of insurance required by law. A list of the minimum requirements can be seen at:
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.9.htm
and/or
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.33.htm
Proof:  Proof of financial responsibility shall be maintained at the motor carrier’s principle place of business. All vehicles operating in the U.S. must have a legible copy of the proof of the required financial responsibility.  All motor vehicle in which there is no evidence of financial responsibility shall be denied entry into the U.S.
Examples of Proof:
Form MCS-90
Form MCS-82
Form MCS-90B
Form MCS- 82B
For more information or clarification please call Royalty Truck Insurance 1-866-989-8998

These tips coming from the US Department of Transportation.Reference:   Part 387 Minimum levels of financial responsibility for motor carriers

Overview: The training module is designed to educate the executive staff of motor carrier companies on the FMCSA regulation on the minimum levels of necessary financial responsibility

Purpose:  The purpose of these regulations is to create incentives for motor carriers to maintain and operate their vehicles in a safe manner and to maintain an appropriate level of financial responsibility.

Applicability:

Motor carriers operating motor vehicles transporting hazardous materials, hazardous substances or hazardous wastes. For-hire motor carriers operating motor vehicles transporting property in interstate or foreign commerce. For-Hire motor carriers transporting passengers in interstate or foreign commerce. Private motor carriers domiciled in Mexico transporting property in interstate or foreign commerce.

Financial Responsibility: Having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirements   { Royalty Truck Insurance can provide you with both.  You can receive a quote online http://royaltytruckinsurance.com/?id=truck-insurance-quote or call us at Toll Free: 1-866-989-8998

Public Liability:  Public Liability means liability for bodily injury, property damage and environmental restoration.

Environmental Restoration:  Environmental Restoration means restitution for the loss, damage, or destruction of natural resources arising out of an accidental discharge of toxic or other environmentally harmful materials or liquids

Definitions of terms relating to FMCSA financial responsibility regulations can be seen at:

http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.5.htm

and/or

http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.29.htm

Requirements: Motor carriers must have at least the minimum amount of insurance required by law. A list of the minimum requirements can be seen at:

http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.9.htm

and/or

http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.33.htm

Proof:  Proof of financial responsibility shall be maintained at the motor carrier’s principle place of business. All vehicles operating in the U.S. must have a legible copy of the proof of the required financial responsibility.  All motor vehicle in which there is no evidence of financial responsibility shall be denied entry into the U.S.

Examples of Proof:

Form MCS-90

Form MCS-82

Form MCS-90B

Form MCS- 82B

For more information or clarification please call Royalty Truck Insurance 1-866-989-8998