H.R. 5337: Motor Carrier Safety Selection Standard Act of 2024

This bill, known as the Motor Carrier Safety Selection Standard Act of 2024, aims to create a national standard for selecting motor carriers that transport goods. Here are the primary components:

Key Provisions

• Negligent Selection Claims: If a business or entity contracts with a motor carrier to transport goods, they can be considered to have made a reasonable choice as long as they verify, prior to shipment, that the motor carrier:
  • Is registered as a motor carrier under federal law.
  • Has the minimum required insurance coverage.
  • Is in compliance with federal safety standards as confirmed by the Federal Motor Carrier Safety Administration (FMCSA).
• Public Confirmation: The FMCSA will provide public confirmation regarding whether a motor carrier meets all operational safety requirements. Two potential statements will be provided:
  • Confirmation that the carrier meets all requirements.
  • Indication that the carrier does not meet one or more requirements.
• Regulatory Updates: Within one year, the Secretary of Transportation is instructed to revise the methods used for evaluating the safety of motor carriers, incorporating a variety of available data.
• Individual Shipper Exemption: Individuals contracting with a motor carrier to ship goods are exempt from the detailed verification process and will be considered reasonable in their selection simply by having engaged a qualified carrier.
• State Law Preservation: The bill does not override any existing state laws or regulations regarding drayage (transportation of goods over a short distance, typically within the same metropolitan area).

Definitions

• Covered Entities: This term refers to those acting as shippers, brokers, freight forwarders, or household goods freight forwarders, among others, but excludes individual shippers.
• Covered Motor Carriers: These carriers are subject to federal financial responsibility and safety regulations, excluding those that primarily transport passengers.
• Individual Shipper: Defined under existing federal law as those shipping goods for personal use.
• Secretary: Refers to the Secretary of Transportation involved in enforcing these regulations.

Implementation Timeline

The Secretary of Transportation must adopt new regulations concerning safety fitness evaluations within one year of the bill’s enactment, ensuring that all provisions take effect in a timely manner.

Relevant Companies

• UPS - As a leading logistics and shipping company, UPS may need to adjust its compliance and verification processes in line with the new standards on motor carrier selection.
• FDX - FedEx, similar to UPS, could be affected by the new criteria and requirements for verifying motor carriers utilized in their supply chain operations.