Convoy lawsuit and how it may affect the industry

Discussion in 'Freight Broker Forum' started by Concorde, Oct 23, 2023.

  1. Concorde

    Concorde Road Train Member

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    What the lawsuit boils down to is that Convoy brokered loads to new entrants with zero safety rating, one of which lead to a fatality. This lawsuit was served a day prior to Convoy shutting down. I suspect that they know they’re screwed.
    Imo this lawsuit is going to make brokerages like Uber, Coyote and all the others who don’t require any type of safety rating to now require it.

    Any brokers on this forum that don’t require any safety ratings, you may want to follow along with this lawsuit and see how it unfolds.

    I suspect that in the near future it’ll be somewhat of a difficult hurdle for new entrants.

    On another note.. I read recently a report of a higher than usual percentage of new entrants getting put oos lately. The consensus was that these companies weren’t making enough money to repair their equipment.

    Here’s an article on the Convoy lawsuit.

    Convoy sued after claims its business model 'contributed to' fatal accident - The Loadstar
     
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  3. PPLC

    PPLC Road Train Member

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    I think the Safety Rating is less the issue here (Also, something like 80% of all carriers don't have a safety rating for a variety of reasons, so the enforcement of that would need to increase) but more likely this from your linked article:

    For example: the named carrier in this, despite the fatality and a history of subpar driving does not have an FMCSA safety rating. Indeed, a quick survey of 20 carriers on loads for my company of 20 carriers show 17 carriers with unrated safety ratings, and 3 with safety ratings of satisfactory. Of the three with safety ratings, all have been in business for a decade or more. However: of the 17 unrated carriers: one had been operating for 15 years with 105 trucks, another for 10 years with 116 trucks. Now, granted, they're making a big deal about the 'unrated' motor carrier in here. But the violations are the much bigger deal.

    Without knowing what their safety standards were, a quick check of Prowheeler, the carrier in question, shows that he'd still be outside of my company's standards, nearly two years after their common authority was revoked, and that excluding the fatality. He's apparently still pending contract authority. It seems likely that they either didn't do their due diligence or didn't have a particularly good system in place for that, but again - don't know for sure.
     
    blairandgretchen Thanks this.
  4. roundhouse

    roundhouse Road Train Member

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    How is the lawsuit even going to proceed since convoy is shut down and out of business and broke ?

    so they have a trial two years from now and get a judgement ,
    There isn’t going to be anything to collect .
     
  5. PPLC

    PPLC Road Train Member

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    I'd have to imagine the lawsuit will proceed against creditors and investors.
     
    Siinman Thanks this.
  6. Siinman

    Siinman Road Train Member

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    I get a kick out of the quote “mandated a driver delivery schedule that was unrealistic such that it forced the drivers to rush to the point that it was unsafe and as a practical matter made it impossible to drive safely” . These are either last minute trucks that need a good solid driver to make happen or a team truck. I have done plenty of these type of loads over the years since they pay the most normally on spot market. Never had a problem with safety as I was prepared to do the job when I bid on it. And if a company is taking team freight and not a team then that is on the carrier all day long. Just amazes me how stupid people can be.
     
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