The negative effect of FedEx Ground’s current CSA scores on service providers

Topics: Safety

FedEx Ground’s CSA violations are adding up, subjecting all FedEx Ground-branded trucks to more frequent roadside inspections. This not only negatively impacts FedEx Ground, but it also impacts the businesses contracting with FedEx Ground.

FedEx Ground’s Federal Motor Carrier Safety Administration (FMCSA) Compliance, Safety and Accountability (CSA) scores are at or above threshold in two categories:

1. Driver Fitness – above threshold

2. Hours of Service (HOS) – at threshold

As a result, FedEx Ground’s ISS (Inspection Selection System) rating has moved from “Optional” to “Inspect.” An “Inspect” ISS rating subjects FedEx Ground-branded trucks to roadside inspections by law enforcement. The “Inspect” ISS rating will likely result in operational disruptions for both service providers and FedEx Ground.

Service providers have as much at stake in keeping CSA scores below threshold as FedEx Ground — for both, it can lead to operational disruptions and financial losses. Read below for more detailed information about the impact of the CSA scores.

How CSA violations may affect your business:

• Service: An “Inspect” status means there is potential for significantly more roadside inspections, which could lead to more CSA violations. This would disrupt operations, and may affect productivity and ability to meet service standards.

• Operations: Intervention by the FMCSA could lead to a FedEx Ground network-wide safety audit by the Department of Transportation (DOT), putting FedEx Ground’s operating authority at risk, which could mean delayed or suspended operations, negatively affecting service providers.

• Brand: Current and future customers could elect to give their business to a competitor with better CSA scores to protect their brand from potential exposure. This could also impact your business’s revenue due to reduced package volume.

• Safety: Failure to follow HOS regulations can result in fatigued drivers, putting the safety of service provider personnel and the public at risk. Not only do HOS violations violate DOT regulations, but they also constitute breaches of service providers’ Agreements with FedEx Ground.

• Agreement: Additional or repeated violations by service providers or service provider personnel may result in FedEx Ground exercising contractual remedies, including, but not limited to, providing a Notice of Opportunity to Cure or termination of the service provider’s Agreement.

To improve driver fitness scores, continued diligence is necessary in the following areas:

• Medical certificates: Ensuring that P&D drivers have valid medical cards on their person at all times

• Physical qualification: Ensuring that corrective lenses are worn by drivers if there is a restriction on the license or medical card

• Driver’s licensing regulatory requirements: Operating a vehicle with a proper license and endorsements (e.g. CDL)

• Proper pre-trip inspection: Correcting identified defects prior to operation

To improve HOS violations, continued diligence is necessary in the following areas:

• Compliance: Under the terms of the Agreements, service providers agree to ensure compliance with all laws and regulations, including HOS regulations.

• HOS in-cab requirements (LH tractors):

1. Supply of blank paper logs sufficient for eight days’ worth of operation

2. User’s manual for the ELD or AOBRD

3. Instruction sheet for data transfer of ELD logs to law enforcement

4. Instructions for ELD malfunction reporting requirements

• Knowledge of ELDs/AOBRDs: Service provider personnel should know how to use the ELD or AOBRD including being able to transmit the logs to law enforcement.

• Resources: The MyGroundBiz.com > Safety > Electronic Logging Device page. It is strongly suggested that the “Inspecting the Record of Duty Status CVSA roadside inspection” video be shared in an effort to raise awareness of law enforcement expectations.

04/12/2019