Amazon lays off trucking contractors: Why hiring good drivers is important

Amazon delivery contractors

According to the website Business Insider, several contractors that help to deliver packages for Amazon have announced that they expect to lay off approximately 2,000 drivers. The move affects drivers employed by Letter Ride, Inpax, Sheard-Lomax Transportation, and Urban Mobility Now, all of which make last-minute deliveries for the online retail giant. The most typical reasons for the layoffs include the filing of Worker Adjustments and Retraining Notifications and the expiration of contracts with Amazon.

What is a delivery service partner?

A delivery service partner (DSP) is a third-party delivery company that typically works only with Amazon. The DSPs then control driver schedules, wages, benefits, and maintenance of commercial vehicles. Those that have chosen to discontinue delivering packages for Amazon have worked with drivers to find positions with other companies that still deliver for Amazon.

Contracting out to a DSP benefits Amazon because it costs much less to deliver packages this way than to offer delivery drivers direct employment. Although relationships with the carriers above ultimately didn’t work out, Amazon is still looking to contract with several new DSPs. It prefers to work with delivery companies that have a fleet of at least 40 commercial vehicles available for deliveries, especially over the holiday season. Transportation industry analysts predict that Amazon will continue its relationships with smaller and newer DSPs while it discontinues doing business with the larger carriers.

truck insurance quotes

The challenges for Amazon DSPs

One risk that DSPs take when agreeing to a contract with Amazon is that the online retailer often makes up a large percentage of their business. This leaves delivery businesses vulnerable to changes and demands made by Amazon. If Amazon reduces business, for example, the DSP can find itself scrambling to bring in lost revenue. Other company owners have found that Amazon doesn’t deliver as much revenue as expected and cut ties on their own.

Hiring inexperienced drivers part of the problem

Some companies learned the importance of hiring good drivers the hard way when it became necessary to file retraining notifications and discontinue delivering for Amazon. As a motor carrier hiring new drivers, the best thing you can do is take your time to thoroughly investigate an applicant’s background before making an offer. The Federal Motor Carrier Safety Administration (FMCSA) offers several resources for employers to check the background of driver applicants for past violations and a history of quickly moving from one motor carrier to the next.

Besides a clean background, qualities of a good driver applicant include:

  • Current commercial driver’s license (CDL)
  • Ability to troubleshoot and perform basic repairs and maintenance on commercial vehicles
  • Ability to follow traffic rules and learn complex on-the-job information quickly
  • Ability to use route planning tools well
  • Strong time management, customer service, and professional communication skills

While these are just some of the many qualifications of an excellent commercial driver, the list gives you a place to start the next time you need to hire new help.

Get truck insurance quotes quickly.

Investigating various insurance policies and carrying enough coverage to financially protect yourself and others is just one part of being a responsible commercial driver. You can get started with your truck insurance quotes by filling out our online form, giving us a call, or messaging us on LiveChat.

Source 1 | Source 2

Brake Safety Inspection Week Blitz is September 15 to 21

Brake Safety Inspection Week

Every year since 1998, the Commercial Vehicle Safety Alliance (CVSA) has sponsored Brake Safety Inspection week in September. This year’s event, which takes place between Sunday, September 15 and Saturday, September 21, will feature random roadside inspections on commercial vehicles located throughout North America. The CVSA works in close association with law enforcement officials to conduct approximately 30,000 surprise inspections each year during Brake Safety Inspection Week.

Read moreBrake Safety Inspection Week Blitz is September 15 to 21

What is the Under 21 Military CDL Pilot Program?

Under 21 Military CDL Pilot Program

The Federal Motor Carrier Safety Administration (FMCSA) is currently working in partnership with the United States military to recruit 18 to 20-year-old commercial drivers. The Under 21 Military CDL Pilot Program will run for three years. During this timeframe, program recruits will have the legal authority to operate commercial vehicles interstate.

Read moreWhat is the Under 21 Military CDL Pilot Program?

Alabama to allow 18 to 21-year-olds to drive CMVs intrastate

18 to 21-year-olds will be allowed to drive CMVs intrastate in Alabama.

On May 15, 2019, the Alabama legislature passed a bill that would lower the age a driver can apply for a commercial driver’s license (CDL) for intrastate truck driving from 21 to 18. The Senate passed the bill 24-0 while the House voted 96-1 in favor of passage. Governor Kay Ivey is expected to sign the bill with an effective date of February 17, 2020. Hawaii is now the only state that imposes a minimum age of 21 to obtain an intrastate CDL.

Read moreAlabama to allow 18 to 21-year-olds to drive CMVs intrastate

What is the Unified Registration System?

Find out what the Unified Registration System (URS) is.

The Unified Registration System (URS) was created to simplify and streamline the registration process required by the Federal Motor Carrier Safety Administration (FMCSA). This online process is designed to integrate several different registration procedures to make registering a commercial vehicle more efficient. The URS works as a portal for registration and a database on all regulated organizations and entities, including fleets, motor carriers, intermodal equipment providers (IEPs), and related businesses.

Read moreWhat is the Unified Registration System?

What is the ELD rule and who is exempt from it?

Find out about the ELD rule and the few exemptions.

Congress passed a bill in 2012 that increased qualifications to receive federal highway funding. Known as MAP-21, or Moving Ahead for Progress in the 21st century, the bill required the Federal Motor Carrier Safety Administration (FMSCA) to make it mandatory for commercial truckers to maintain an electronic logging device (ELD) – in other words, the ELD rule.

Read moreWhat is the ELD rule and who is exempt from it?

How can a motor carrier be sure an ELD is compliant?

Make sure that your ELD device complies with the law.

Most motor carriers are required to utilize an electronic logging device (ELD) in their vehicles. However, understanding all of the associated rules can be difficult. Below is some information to help you make sure you are fully compliant with this law.

Read moreHow can a motor carrier be sure an ELD is compliant?

FMCSA to allow trucks to replace rear-view mirrors with cameras

Find out how cameras could replace traditional rear-view mirrors.

Rear-view mirrors on trucks are a standard safety measure, but one that has limitations. In some cases, a camera system has a wider range of view and can enhance safety. In a recent ruling, the Federal Motor Safety Association (FMCSA) agreed to allow large trucks and carriers to use high tech camera systems in place of the traditional dual mirror setup.

Read moreFMCSA to allow trucks to replace rear-view mirrors with cameras

How the government shutdown is affecting the transportation industry

government shutdown trucking DOT FMCSA

The news has been going wild with reports of the government shutdown, which began in December. Many people have been affected by the partial shutdown, and it still seems unclear how long the shutdown will last. The DOT, like many government agencies, has been affected by the partial shutdown, although the Federal Motor Carrier Safety Administration and the Federal Highway Administration have not been greatly impacted. We’ll explain how the government shutdown has affected the DOT, the FMCSA, and the FHWA.

Read moreHow the government shutdown is affecting the transportation industry