Freight hauling operations with chameleon characteristics are reportedly more likely to be involved in a serious semi-truck accident. While trucking outfits go to great lengths to put reliable CDL professionals behind the wheel of safe rigs, a small number of rogue actors put everyone at risk.
“The Federal Motor Carrier Safety Administration (FMCSA) has coined the phrase ‘Chameleon Carrier’ to describe motor carriers that deliberately close up shop and reopen with a new name and DOT number to avoid facing penalties and paying fines that are generally incurred as the result of an adverse safety history,” according to the National Law Review. “FMCSA has long acknowledged that chameleon carriers place the motoring public at extreme risk and has made efforts to identify and regulate companies that engage in this practice.”
Chameleon carriers amass a shameful highway safety record that may involve tragic collisions, drivers who flunk drug tests, and tractor-trailers that routinely fail inspection. When the FMCSA suspends them, owners and investors simply create a new corporation and apply for credentials.
“In a 2013 study on this issue, the U.S. Government Accountability Offices found that carriers engaging in chameleon practices were three times more likely to be involved in a severe crash than carriers that operate in compliance with the law,” according to the National Law Review.
Although the FMCSA continues its efforts to reduce unethical outfits from flying under the radar, the trend does not appear to be waning nationally. Studies conducted by the U.S. Government Accountability Office repeatedly point to chameleon carriers gaming the system. In 2005, early 800 companies opened with chameleon characteristics. A 2012 study indicated the number of chameleon-like organizations increased. And based on 2021 new carrier authority applications, if 1 percent are chameleons, more than 1,000 dangerously unfit carriers are hiding in plain sight.
People concerned about highway safety have made bold attempts to hold unsavory owners accountable. After a man suffered a serious injury due to the negligent actions of a chameleon carrier, the victim sued freight broker C.H. Robinson Worldwide Inc that hired it. The case made its way to the U.S. Supreme Court, claiming brokers need to conduct deep due diligence on carriers they hire. Robinson was denied an appeal in late June and now brokers are tasked with thoroughly vetting carriers, particularly newly-formed corporations.
States such as Texas have also taken the initiative to prevent chameleon activities. Lawmakers and the Texas Trucking Association crafted legislation that empowers state officials to deny suspicious applications.
“Frankly, it used to be a lot easier to get away with, to the extent companies that would have their authority revoked and then effectively just use the same address, put a new name on the front door, and refile for your authority,” Texas Trucking Association president John Esparza reportedly said. “By and large, the majority of the people that are out there are trying to make a living in trucking. The ones that are cutting corners, it’s getting to the point they are fewer and farther between.”
Sources:
https://www.freightwaves.com/news/chameleon-carriers-pose-threat-to-nations-roadways
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