In traditional capacity models, carriers handle the heavy lifting; procuring freight from customers, obtaining licenses, filings, operating authority, liability insurance, etc. This environment is commoditized and fosters little opportunity to invest in or display value / differentiation. In all honestly, how many of your competitors have access to the same training modules, "proprietary" technologies, safety materials, etc.?

The implementation of CSA drastically shook the industry. A tidal wave shortly ensued with proposals to reduce Hours of Service and to mandate Electronic On-Board Recorders. Aftershock continues to be felt with shortages in Driver Capacity, volatile fuel prices and a government (taxpayer) subsidized program to monitor Mexican trucks crossing the Unites States boarder. Yet despite all the warning signs, Risk Managers aren't turning to their "evacuation plans". Instead their steady hands calmly seek and thoroughly evaluate alternative relief efforts.

In a move to further protect themselves from the "natural" economic and legislative disasters innate to the transportation industry, carriers have started helping Independent Contractor Owner-Operators obtain their own DOT Operating Authority. This new business model differentiates carriers in the marketplace, balances supply & demand, offers administrative relief by shifting transactional responsibilities and potentially shields carriers from unfavorable legislation and compliance standards. Not to mention carriers are building an attractive platform to develop safe, professional drivers!

Invariably, there are significant ripple effects a Risk Manager must consider prior to "flipping the switch". In order to properly execute this model, Risk Managers should conduct a detailed analysis around the following components:

• Driver Business Support Model
• Organizational Structure & Coordination
• Federal & State Operating Requirements
• Customer Contracts

Stayed tuned as we continue to explore and discuss alternative ways to maximize non-asset based capacity!

Onward!

Trent