How One Carrier Built a Fleet from Scratch

Amy Chavez

–

June 3, 2026

Filip’s truck broke down on his very first load.

He paid for the tow. Paid for the repair. And had nothing left. That was day one of his trucking business.

Today, he runs 40 trucks under PT Freight, a trucking company based in rural Illinois that operates with company drivers and owner-operators — including a lease-to-purchase model that helps drivers buy their own trucks.

In this episode of This Week in Trucking, Filip Jovanovic, Founder and CEO of PT Freight, breaks down exactly how he went from one truck and zero cash reserves to a 40-truck operation — and what every owner-operator and small carrier needs to know about building a fleet that lasts.

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Episode Highlights

It Started with One Goal: Buy the First Truck

“From the first day when I decided I like to be in the trucking industry, I started thinking about how to build my company, how to open my authority, and how to start my trucking business.” — Filip

Filip started driving for other trucking companies under their authority. He saw problems in their structures and started planning. He knew he wanted his own operating authority — and he was willing to wait until he was ready.

Then he bought his first truck. And it broke down on load number one.

“I learned right away what I need to do. You need to have cash reserves. You need to be prepared.” — Filip

That lesson scaled. At 40 trucks today, the principle is the same: if five trucks go down, you need to be prepared for it.

The Real Numbers: What One Truck Grosses Per Week

“If the driver is seven days on the road and the market is okay that week, minimum is $5,500. It can go to $8,000 or $9,000.” — Filip

Revenue depends on the driver’s availability and market conditions. PT Freight runs general freight — no niche specialization — and relies on strong broker relationships and dedicated routes to keep trucks loaded consistently.

For drivers running five days, they’re covering 2,500 to 3,500 miles per week.

How PT Freight’s Driver Model Works

Filip runs two models:

Company drivers get paid per mile. The company covers insurance and provides fuel cards. After expenses, roughly 50% stays with the company and the rest goes to the driver.

Owner-operators can lease a truck through PT Freight and drive under their authority. Several drivers have already paid off their trucks and continue working with the company.

“If a driver comes to me and says he wants to buy a truck, I tell him: start as a company driver. If we like each other, we’ll find a way to help you buy your first truck.” — Filip

The Biggest Expenses: Fuel and Insurance Keep Climbing

“Insurance for the company is the biggest expense. Insurance rates every year are higher.” — Filip

Fuel is the largest variable cost. But insurance is the one that keeps growing year over year and hits the hardest at the company level — especially as you scale.

For small carriers, underestimating these two costs is where the math falls apart.

Why Good Dispatch Is Everything

“That’s the most important thing in trucking right now — to have good dispatchers.” — Filip

Filip tried dispatching himself early on. It didn’t work. Dispatching requires 200% focus — constantly watching load boards, tracking freight brokers, negotiating rates.

He built a 24/7 dispatch team and handed it off. That one decision let him focus on building the business instead of running loads.

For owner-operators who are still self-dispatching: it works until it doesn’t. The moment you want to scale, dispatch is the first hire that matters.

What Separates Top Drivers from Average Ones

“If you want to make money, you need to sacrifice. Your time, your family time, everything. And that’s going to pay off.” — Filip

Filip’s top performers are the drivers who stay on the road. In his OTR model, the drivers making the most money are the ones running five to seven days, not two or three.

He’s direct about it: the 2-on, 3-off model doesn’t work for his trucking business. The drivers who treat their seat time like an investment are the ones who earn the most.

Know Your Numbers Weekly — Not Monthly

“You need to know your numbers weekly. Track your expenses every week. Fuel cost, insurance cost per mile, how much you’re paying for your truck.” — Filip

Filip’s one piece of advice to every owner-operator and small carrier:

Don’t wait until the end of the month to figure out if you made money. Track weekly. Fuel cost per mile, insurance cost per mile, truck payment — know it all, every seven days.

It’s simple. And it’s the thing that keeps you in business.

Cash Flow Is What Keeps Growing Fleets Alive

One of the biggest challenges for owner-operators and small carriers is waiting weeks to get paid while expenses hit every day. Fuel, maintenance, insurance, towing — bills don’t wait for broker payments.

That’s where Bobtail comes in. Same-day pay on loads you’ve already hauled. No hidden fees. Real customer support when you need it.

Not a loan. Just your money, faster — so a breakdown on load one doesn’t end your business.

Check out Bobtail’s financial tools for cash flow →

Talk to our team about your operation →

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FAQs

Frequently Asked Questions: FMCSA Compliance for Trucking Companies in 2026

What is the biggest FMCSA enforcement change in 2026?

The biggest shift isn’t a new trucking regulation, it’s enhanced enforcement. The FMCSA (Federal Motor Carrier Safety Administration) and state law enforcement partners are cracking down harder on existing rules, particularly English language proficiency and non-domiciled CDL requirements.

What is the Delilah Law, and how does it affect truck drivers?

The Delilah Law is proposed federal legislation by Senator Jim Banks that would restrict commercial driver’s license (CDL) eligibility based on immigration status, require English-only CDL testing, and impose $50,000 penalties on trucking companies that employ non-eligible drivers involved in accidents.

Is CDL training getting harder or more expensive in 2026?

The CDL training requirements themselves haven’t changed, but FMCSA has removed over 9,000 training providers from its registry. This means fewer — but higher-quality — CDL training options, which could raise costs for people looking at how to become a truck driver.

Why did California lose $140 million in federal highway funding?

FMCSA withheld Motor Carrier Safety Assistance Program (MCSAP) funding because California wasn’t enforcing English language proficiency and non-domiciled CDL regulations aggressively enough. California has since begun revoking improperly issued CDLs and increasing roadside inspection enforcement.

What are non-domiciled CDLs and why are they being revoked?

Non-domiciled CDLs are commercial driver’s licenses issued by a state to drivers who don’t reside in that state. Under new enforcement rules, these CDLs will have a maximum validity of one year, and over 13,000 improperly issued ones have been canceled in California alone.

What should small carriers check when hiring drivers in 2026?

Verify English language proficiency during your driver qualification process, confirm that any CDL presented is properly issued (watch for non-domiciled CDLs with limited validity), and stay current on FMCSA regulations around driver eligibility.

What are DOT officers focusing on during roadside inspections in 2026?

Officers are heavily focused on English language proficiency violations, proper licensing, hours of service compliance, and vehicle conditions, including brakes, lights, and tires. English proficiency violations alone are averaging over 2,000 out-of-service orders per month.

How do CSA scores affect my ability to get freight and truck insurance?

High CSA scores can trigger DOT audits, make freight brokers and shippers less likely to hire your trucking company, increase your truck insurance premiums, and make you a target for plaintiff’s attorneys in accident litigation. Poor compliance metrics can effectively end your ability to do business.

Should I fight a roadside inspection violation or just pay it?

If you have evidence the officer made a mistake, challenge it through the state court system or through FMCSA’s DataQs system. Inaccurate violations inflate your CSA scores, which leads to higher insurance costs, lost freight, and potential DOT audits.

What DOT compliance steps should I take before starting a trucking business?

Build your full compliance program before putting a truck on the road: set up your ELD system, create driver qualification files, establish vehicle maintenance schedules, implement hours of service tracking, and have a plan for monitoring your compliance metrics daily.

How can carriers stay updated?

Subscribe to This Week in Trucking’s FREE newsletter for weekly insights on fuel prices, market updates, and interviews with successful carriers who share real strategies that work. Subscribe here.

What is freight factoring, and how does it help owner-operators?

Freight factoring (also called accounts receivable factoring or invoice factoring) is when a factoring company purchases your unpaid invoices and pays you immediately — typically within 24 hours. This gives owner-operators and small carriers the working capital they need to cover fuel, maintenance, and compliance costs without waiting 30–60 days for freight brokers to pay.

Are new FMCSA trucking regulations expected in 2026?

FMCSA is not expected to pursue major new rulemaking this year. However, NHTSA and the broader USDOT are developing a regulatory framework for autonomous trucks, which will eventually impact the entire trucking industry.

Full Transcript

00:00:00:00 - 00:00:01:06
Unknown
I mean, do you want to live with

00:00:01:08 - 00:00:04:04
Unknown
the reality of you hurting somebody out on the road because

00:00:04:04 - 00:00:04:20
Unknown
You didn't take the,

00:00:04:22 - 00:00:10:01
Unknown
day or two to put in place these foundational things that could have prevented it. I don't think you want that weighing on your conscience.

00:00:10:01 - 00:00:15:16
Unknown
Welcome to this week in tracking. I'm Amy. Today we're joined and welcoming back Brandon Weissman,

00:00:15:18 - 00:00:30:23
Unknown
President of Track Save Consulting and one of the most recognized transportation attorneys in the trucking industry. Brandon works directly with carriers across the country, helping them navigate D.O.T. compliance, safety regulations, and the legal challenges that come with running a Tribune company.

00:00:31:05 - 00:00:32:13
Unknown
I'm sure you've heard about him.

00:00:32:19 - 00:00:50:09
Unknown
today, we'll try to break down some of the biggest regulatory changes happening in trucking right now. Brandon, welcome back to the show. Thanks for having me back, Amy. Appreciate it. You're back with us again. And trucking regulations seem to be changing, updating and moving every week.

00:00:50:15 - 00:01:04:18
Unknown
If you had to explain one of the biggest regulatory shifts happening this year, or are these months, in simple terms, what would you say small carriers should be paying attention to right now? I think the real theme,

00:01:04:19 - 00:01:25:07
Unknown
over the last several months and will likely be the theme throughout 2026, is enhanced enforcement. So not so much rules changing, but more crackdowns from the FMC say, in its state law enforcement partners on how aggressively it enforces various parts of its regulations.

00:01:25:09 - 00:01:34:14
Unknown
We've seen this a lot with things like English language proficiency and non domiciled CDL. These are not new rules with a caveat for non domiciled CDL.

00:01:34:16 - 00:01:39:21
Unknown
But what is changing is how aggressively the D.O.T. enforces those things.

00:01:39:23 - 00:01:43:23
Unknown
Yeah we do see more tightening of these enforcements.

00:01:44:01 - 00:01:51:03
Unknown
With every update we're getting. One of the things that has been getting our attention these weeks is the Delilah law.

00:01:51:05 - 00:01:59:01
Unknown
In simple terms, can you tell us what it is and why does it matter to me as a truck driver to be paying attention to this?

00:01:59:03 - 00:02:14:07
Unknown
Yeah, in simple terms, which is easier said than done when it comes to federal legislation. But, in simple terms, this is a bill that was presented by Senator Jim Banks from my home state of Indiana, that

00:02:14:09 - 00:02:16:04
Unknown
proposes,

00:02:16:06 - 00:02:20:19
Unknown
new laws pertaining to who is eligible to get a CDL and who's not.

00:02:20:19 - 00:02:23:17
Unknown
Namely, cracking down on,

00:02:23:19 - 00:02:32:20
Unknown
the pool of immigrant drivers who are eligible, who would be eligible to get a CDL, and making it clear in federal legislation that,

00:02:32:22 - 00:02:43:19
Unknown
non-citizens, at least those not holding the specifically enumerated categories of licenses, or immigration status as outlined in the law, would not be eligible for

00:02:43:21 - 00:02:47:13
Unknown
would not be eligible for those types of commercial driver's licenses.

00:02:47:13 - 00:02:54:16
Unknown
And so this is kind of an add on to the existing debates we've been having about non domiciled CDL. So this

00:02:54:16 - 00:03:31:12
Unknown
would take it a step further. And it would significantly impact the existing pool of drivers that we have operating in the country. It would also require the states to do certain things when it comes to the administration of the CDL program, for example, as the the bill is structured right now, it would require every single CDL holder in the country to go get re certified that they have the proper, citizenship and that type of stuff, which may be a hang up to how far this bill moves.

00:03:31:12 - 00:03:55:08
Unknown
If I had to guess. But we'll have to wait and see. But some other things like it, it requires states to administer their, CDL, testing in, in English and also to require English language proficiency as part of the CDL testing process. So there's a lot kind of wrapped up into the bill, but it's really aimed at getting control of,

00:03:55:13 - 00:04:01:00
Unknown
of the situation that we have now with several high profile accidents involving,

00:04:01:02 - 00:04:04:00
Unknown
you know, non-citizen drivers, that type of stuff.

00:04:04:03 - 00:04:17:02
Unknown
And then how would you say the Delilah law could change the way accidents, investigations or penalties work right now since we are seeing all these high profile accidents, it could this law

00:04:17:04 - 00:04:20:22
Unknown
bring a change to how we manage accidents, investigations, etc.?

00:04:21:02 - 00:04:38:07
Unknown
Probably not the way we manage them. I think what it does do, it's been a while since I've looked at it, but I think it sets up a pretty hefty penalty for any carriers that employ a driver who doesn't meet the eligibility criteria, and then they get involved in a crash.

00:04:38:07 - 00:04:54:08
Unknown
I think the penalty it references is like a $50,000 penalty for that type of stuff. So we if it ultimately passes, we would see a crackdown in that regard. But in terms of how we actually investigate the accidents and stuff like that, probably not much of a shift there.

00:04:54:10 - 00:05:01:11
Unknown
And then another topic we've been, reading and hearing about is the entry level driver program changes.

00:05:01:13 - 00:05:24:21
Unknown
So this is moving the removal of certain CDL schools, CDL pathways. Can you tell us more about what is changing there and if the level of entry is changing and becoming more difficult for people wanting to come into the industry? Yeah. Following along our theme of enforcement, enhanced enforcement, this is another crackdown on enforcement. It's nothing new about the program itself.

00:05:24:22 - 00:05:37:05
Unknown
There are no proposed changes to who's eligible to get the training or what the training must entail. Nothing like that yet. I mean, it's not to say that we won't see that in the near future, but right

00:05:37:06 - 00:05:49:08
Unknown
now all we have is the CSA cracking down on the training providers who provide that training in the sense of the agency auditing is existing entry level driver training providers.

00:05:49:08 - 00:06:12:08
Unknown
I think there are like 34,000 of them on the list of training providers, and they are actively removing the ones from that list that aren't compliant with the requirements for those types of training programs. So I think the last announcement I saw when we're recording this in early 2026, I think they've removed over 9000 training providers from that registry.

00:06:12:08 - 00:06:25:18
Unknown
A lot of those were not active, so they weren't even providing training, but they were on there anyway. So a lot of it is that. But yeah, the CSA cracking down on on those training providers to make sure that we have quality training providers,

00:06:25:20 - 00:06:29:14
Unknown
because the last thing you want is to have a bunch of

00:06:29:19 - 00:06:32:23
Unknown
cheap training providers on the list that aren't providing

00:06:33:05 - 00:06:35:11
Unknown
adequate training to folks that we are

00:06:35:13 - 00:06:39:10
Unknown
going to turn the keys over to, to these large trucks and busses.

00:06:39:10 - 00:06:45:12
Unknown
So that's just not something we can afford to have in the country. And so, yeah, I think it makes sense for the agency to focus on that.

00:06:45:18 - 00:06:46:14
Unknown
Do you think these

00:06:46:14 - 00:06:48:10
Unknown
changes could help our safety

00:06:48:10 - 00:06:50:11
Unknown
or make the driver shortage worse?

00:06:50:13 - 00:06:56:05
Unknown
yeah. I don't know what the current status of the debate on whether we have a driver shortage or not is.

00:06:56:05 - 00:07:07:07
Unknown
I've heard lots of folks say there is one, and I've heard lots of folks say there isn't one. I'm not smart enough to know whether that's true or not. Surely there's some data out there that could actually prove one way or the other, but regardless,

00:07:07:09 - 00:07:15:13
Unknown
I don't know that this entry level driver training crackdown on enforcement is necessarily going to impact the driver pool one way or the other.

00:07:15:13 - 00:07:44:20
Unknown
It's just going to force drivers who were actively pursuing one of the shady training providers to go source their training from a less shady training provider on the registry, so they may have to pay more, and maybe it cuts down on the pool in that way. It it's an increased barrier to entry because as you get to a list of training providers that are more legitimate, inevitably that's going to cause the average price of these programs to go up.

00:07:44:22 - 00:08:04:14
Unknown
Unless it's a driver who's getting the training from, you know, there are a lot of carriers in the country that have their own training program. And so and sometimes the cost of those training programs are subsidized by the carriers that are putting the drivers through them. So there are various avenues still available to folks wanting to get into trucking.

00:08:04:14 - 00:08:07:07
Unknown
And and yeah, they should explore them all.

00:08:07:09 - 00:08:13:02
Unknown
And now moving to another piece of news. I feel we've been seeing for months and months and months,

00:08:13:06 - 00:08:17:16
Unknown
about California. Are they removing federal funding?

00:08:17:18 - 00:08:25:07
Unknown
Is California canceling thousands and thousands of non domiciled titles? Can you give us a little update of what actually is going on right now?

00:08:25:13 - 00:08:28:20
Unknown
Yes and yes. So the FMC, CSA announced

00:08:28:22 - 00:08:43:19
Unknown
last year that they were going to withhold over $140 million from California, through a federal funding program called the Motor Carrier Safety Assistance Program, mix up funding. So this is the,

00:08:43:22 - 00:09:01:00
Unknown
that the this is the tool that the FMC, S.A. has available to them when it comes to dealing with states who don't align with the FCS goals, they can withhold federal funding that the states use to help fund their highway safety programs.

00:09:01:02 - 00:09:12:21
Unknown
And it's the tool that the FMC SA uses to get those states in line with its priorities. And so that's what we're seeing here with the FMC, CSA, you know, slapping the wrist of California for not,

00:09:13:02 - 00:09:25:06
Unknown
enforcing the English language proficiency requirement aggressively enough, not enforcing the non domicile CDL issue aggressively enough, at least according to FMC.

00:09:25:08 - 00:09:45:06
Unknown
So that's what they did. They withheld the the funding and that's that's what we've got. And we've seen the results of that already. To your other point California is starting to get in line. So we've seen a significant uptick in the number of English language proficiency out of service violations coming out of California over the last couple of months.

00:09:45:08 - 00:09:59:03
Unknown
And we've also seen them just recently announce the, revocation, the cancellation of over 13,000 non domiciled CDOs that were improperly issued by the state to begin with. So

00:09:59:05 - 00:10:00:11
Unknown
And if

00:10:00:13 - 00:10:10:18
Unknown
I'm a small carrier and I'm hiring drivers, what should I be careful about? What do I need to be asking people for to avoid non domiciled CDOs or,

00:10:10:21 - 00:10:12:20
Unknown
CDOs that aren't in line?

00:10:12:22 - 00:10:19:09
Unknown
It's a little tricky now. I mean, there's rough waters, to say the least, because of the political nature of these things

00:10:19:15 - 00:10:34:13
Unknown
and because some of them are still up in the air, namely the non domiciled CDL issue. We're still waiting, when we're recording this, we're still waiting on the final rule to take effect. And there's also some federal lawsuits have been filed to try and block the those routes.

00:10:34:13 - 00:10:41:23
Unknown
Yeah. So until that all settles out, it's going to be a little bit of a rocky road. But some of the things that you can watch out for if you're a carrier,

00:10:42:01 - 00:11:03:10
Unknown
English language proficiency just has to be baked into your, your driver qualification process. It's just a fact of the matter. If you're not evaluating the English proficiency of your driver candidates, then you're just setting yourself up for problems out of service orders, potential audits, bad exposure and highway accident litigation, that type of stuff.

00:11:03:10 - 00:11:05:10
Unknown
So you need to have that in your processes,

00:11:05:14 - 00:11:09:07
Unknown
to check that when you are onboarding new drivers. And,

00:11:09:08 - 00:11:23:00
Unknown
you know, if you're trying to onboard a regulated driver and they're not proficient in English, they're not qualified. That's how our laws are set up. You're not qualified to operate for you. So you can't extend, a job. You can't extend the regulated driving job to them

00:11:23:02 - 00:11:24:18
Unknown
when it comes to non domiciled CDL.

00:11:24:18 - 00:11:41:20
Unknown
So you got to be real careful if you've got a driver candidate coming to you and the license they present to you is a non domiciled CDL. There's going to be a short shelf life on the validity of that license. Under the new rule that driver's non domiciled CDL is going to be valid for a maximum of one year.

00:11:42:02 - 00:11:53:11
Unknown
And then after that they're not going to have a valid CDL anymore. So you got to be cognizant of of that. And stay tuned to all of the news that's going on with the current status of those types of licenses,

00:11:53:13 - 00:11:59:01
Unknown
Now moving on to another topic. I know people want to stay updated in,

00:11:59:03 - 00:12:01:00
Unknown
can we talk about roads?

00:12:01:00 - 00:12:07:20
Unknown
Have inspections, and I'm going to give you a two way, question. Can you tell us what officers are

00:12:07:22 - 00:12:16:06
Unknown
focusing most on this year and what are the most common mistakes? You see small carriers getting in trouble for in these inspections?

00:12:16:11 - 00:12:20:14
Unknown
Well, the one that sticks out is the English language proficiency. I mean, just looking at the data,

00:12:20:19 - 00:12:26:18
Unknown
because it's been in the news so much, we are seeing a tremendous uptick in those types of violations.

00:12:26:18 - 00:12:39:20
Unknown
I think we're averaging like 2000 or more English language proficiency, out of service violations, roadside. So that for sure is a big focus of, of roadside inspections currently. So watch out for that. Other than that,

00:12:40:01 - 00:12:53:04
Unknown
you know, it's the usual suspects. These these things don't change all that dramatically from year to year. The things that the officers are focusing on when it comes to the driver related things are proper licensing, hours of service issues.

00:12:53:06 - 00:13:09:02
Unknown
And then on the vehicle side of things, it's the usual things brakes, lights and tires. So, you know, there's not a whole lot to say there that you probably haven't already heard other than just, you know, prepare ahead of time. Last thing you want to do is to find yourself not prepared, and then you get a roadside inspection.

00:13:09:02 - 00:13:35:06
Unknown
All of a sudden you're shut down and your customers are angry and stuff like that. So, yeah, that's the current state of roadside inspections in terms of, you know, small carriers and what they can look out for. You know, my biggest advice always to regardless of the size of the carrier, but particularly for smaller carriers, is the importance of being proactive when it comes to D.O.T. compliance.

00:13:35:06 - 00:14:20:16
Unknown
I think I probably preached this on our last episode, but, you know, taking an hour or two to bring yourself up to speed on the current state. State of D.O.T. safety regulations will go so far in keeping you out of the crosshairs. That again, I can't overemphasize it enough. So, you know, find a resource there. They're widely available to stay up to date on D.O.T. safety regulations and just add it to your workflow so that you could stay on top of these things and not find yourself into trouble too often with Dot compliance, we are very reactive industry and we are, you know, constantly here on fire with whatever the thing is,

00:14:20:18 - 00:14:38:16
Unknown
you know, bad inspection or the dot's knocking on the door for an audit or. God forbid, we're in a bad accident. Now we're having to scramble. You don't want to find yourself in any of those positions. It's obvious. It seems obvious to say it, but too many fleets are in that position. So be proactive about it

00:14:38:18 - 00:15:04:16
Unknown
Yeah, speaking of those possibilities and the possibility of getting shut down, a quick reminder for the owner, operators and small carriers that are listening. One of the biggest challenges and striking can be managing cash flow while you're waiting to get paid. Brokers and shippers can take 30, 45, or even 60 days to pay an invoice, which can make it hard to cover fuel, maintenance or payroll.

00:15:04:18 - 00:15:08:13
Unknown
And in the meantime, that's why carriers are using financial tools.

00:15:08:16 - 00:15:19:19
Unknown
it allows you to quickly turn those invoices into working capital so your truck keeps moving. I, as always, will leave you a link in the description for Bob tails Factoring service. If you want to learn more.

00:15:19:22 - 00:15:27:19
Unknown
Brandon, can we now move to a compliance? They keep talking about continuous risk improvement.

00:15:27:21 - 00:15:31:19
Unknown
What does that mean for a one truck or small fleet carrier?

00:15:31:23 - 00:15:43:17
Unknown
To be honest, I don't know what they mean by that. It's not the terminology that you'll find in their regulations or anything like that. I can guess what they mean by it. You know, when you look at things like

00:15:43:20 - 00:15:58:13
Unknown
the CSA scoring platform that many are familiar with and what exactly it's doing, it is aimed at improving, a carrier's risk profile over time by looking at trends in their data.

00:15:58:13 - 00:16:17:15
Unknown
So and I, you know, that's just good advice for any carrier. It's the patterns of noncompliant but compliance that you want to avoid at all costs. The one off violations are going to happen here and there. Some are more serious than others, but it's rarely the one off violations that I'm all that concerned about, and that the Dot is all that concerned about.

00:16:17:15 - 00:16:51:17
Unknown
What they are more concerned about are when the one off violations become the two off violations and the three off violations, and now all of a sudden you've got a pattern of noncompliance. Those patterns are the things that get punished through, Dot audits and potentially getting shut down also in highway accident litigation. So when it comes to continuous risk improvement, whatever that means, I think it means something like, the, kind of a cycle that you as a carrier need to have in place where you are monitoring your compliance on a daily basis.

00:16:51:17 - 00:17:14:09
Unknown
You're looking at your roadside inspections. What was the what were the issues discovered in that inspection? And then you are putting in place the corrective actions you need to address that, not only that one instance, but to prevent it from reoccurring in the future. Yeah. So that type of kind of cycle should be playing out at your fleet to make sure that you're getting ahead of these things before they balloon into systemic problems.

00:17:14:09 - 00:17:19:19
Unknown
And you land on the on the naughty list for, for whoever's watching those types of metrics.

00:17:19:21 - 00:17:25:01
Unknown
one other thing I would like to ask you, because I feel like you are the person to ask this too,

00:17:25:03 - 00:17:27:19
Unknown
when it comes to safety scores and CSA

00:17:27:22 - 00:17:28:09
Unknown
data,

00:17:28:09 - 00:17:35:05
Unknown
how much do violations today actually impact to carrier's ability to get freight or insurance tomorrow?

00:17:35:07 - 00:17:57:18
Unknown
Well, yeah, I mean that's there's several things to think about there. So, you know, there are many eyeballs on your CSA scores and your other safety metrics. You're out of service rates and stuff like that. So certainly it's the Dot's platform. So they're watching them. And the D.O.T. uses your scores primarily to determine whether they need to escalate enforcement against you, namely coming in to do an audit.

00:17:57:18 - 00:18:15:11
Unknown
So it's the primary driver for D.O.T.. Audits are high CSA scores. And if you get audited, you know, you run the risk of being shut down. If you've got those patterns of noncompliance that the D.O.T. looks at. So that directly impacts their ability to do business. But of course, the D.O.T. is not the only set of eyes on your scores.

00:18:15:11 - 00:18:38:07
Unknown
There are customers that look at your scores, sometimes your CSA scores, but those are for private. For property carriers, those are generally hidden, unless you give them access. But they find ways around this. And the point of the matter is shippers and brokers are looking at your safety metrics and determining whether they want to do business with you based on those metrics.

00:18:38:12 - 00:18:58:03
Unknown
If your metrics are painting you as an unsafe carrier, then the shippers and brokers out there can't afford to hire you. In terms of the exposure you create for them. Because if you get involved in an accident while you're hauling their freight, you can be sure that they're going to end up pulled into that litigation. And, and they don't want to be there.

00:18:58:03 - 00:19:25:19
Unknown
So they use it as a vetting mechanism. They use your compliance metrics as a way to vet carriers. And the worse you perform, the less likely you're going to be able to secure the types of freight that you want. Also, insurance companies are certainly looking at your metrics as well and using it to determine whether you are insurable or not or what your rates you know, your premiums are going to be for what you pay for your insurance.

00:19:25:21 - 00:19:54:14
Unknown
You perform worse from a compliance standpoint, the higher your premiums are going to be, generally speaking. And maybe you get to a point where you're not insurable anymore and it's, you know, game over for you. So those are just a few. And then certainly the plaintiff's bar looking at your scores, in Iowa accident litigation. So all of that is to say your metrics are, potentially putting a big target on your back if if you're not watching them and they have gotten out of control.

00:19:54:16 - 00:20:07:05
Unknown
And for carriers that do get cited during your roadside inspection, when would you say in your experience, when does it make sense to fight a violation versus just paying it and moving on?

00:20:07:07 - 00:20:09:03
Unknown
just paying it, moving on.

00:20:09:05 - 00:20:20:11
Unknown
May be a good approach in some situations, but if you've got a good faith reason to challenge a violations, if the officer got something wrong and you've got evidence to support your position, you should challenge, you should challenge it.

00:20:20:11 - 00:20:32:06
Unknown
If you got a citation, you should challenge it through the state court system. And if not, you should challenge it through the data cuz FMC is a static use system because you can't really afford to have,

00:20:32:08 - 00:20:43:10
Unknown
inaccurate violations sitting on your account for the reasons we've already talked about. They jack up your scores and then all of the, you know, the parade of horribles that follows from jacked up scores.

00:20:43:10 - 00:21:06:20
Unknown
So yeah, if you've if you've got a good faith argument to make that the officer got something wrong when they wrote your driver up for violations, you should you should challenge them. And, and if you're successful, then, you know, maybe the, the violations come off your scores altogether or maybe they decrease in weight. But yeah, you should look at it seriously.

00:21:06:22 - 00:21:08:05
Unknown
coming from your,

00:21:08:07 - 00:21:22:14
Unknown
standpoint, we we believe and we feel you have insights. Looking ahead, are there any regulations or enforcement trends that you think might surprise the trucking industry the most over the next few years?

00:21:22:20 - 00:21:30:17
Unknown
No, not necessarily. I mean, the enforcement I like I said, the theme of this year is going to continue to be enforcement from FMS, CSA.

00:21:30:19 - 00:22:05:08
Unknown
I don't anticipate them rolling out any unexpected rules. Just they're already busy enough with the crackdown on enforcement. I don't foresee them pursuing any significant rule making this year or even for this administration for for that matter. You know, they could surprise me, but I don't anticipate it. Probably not all that interesting to everybody in the industry, but if if we're going to go anywhere with rulemaking in transportation in the near future, it's probably going to pertain to like autonomous trucks.

00:22:05:10 - 00:22:34:10
Unknown
We saw Secretary Duffy just on the news this week when we're recording this with the National Highway Traffic Safety Administration talking about building out a sorely needed framework, regulatory framework for how we're going to regulate these autonomous trucks that are already out there operating. So, you know, I think that will be inevitable. That will be a rulemaking that we see, albeit not from FMC or say, directly, but from the USDA team more broadly.

00:22:34:10 - 00:22:35:07
Unknown
And and Mid-South.

00:22:35:13 - 00:22:38:12
Unknown
And now we're heading into our last question.

00:22:38:18 - 00:22:39:13
Unknown
Something I like to,

00:22:39:16 - 00:22:54:04
Unknown
ask people just to see where they are in their mind and what you would focus on being who you are if you owned one truck running under your own authority today, what would you focus on most to stay compliant and avoid expensive violations?

00:22:54:08 - 00:22:56:07
Unknown
I would do the things I've already recommended that

00:22:56:09 - 00:23:13:16
Unknown
very few people take my advice on, which is to be proactive about it and build out my compliance program. Before I even put a truck out on the road, I would just probably my personality and also the fact that I'm a lawyer, but I would want to have all of my T's crossed and my eyes dotted.

00:23:13:18 - 00:23:23:01
Unknown
When it comes to safety and compliance, before I even think about putting a truck out on the road, because I've seen the consequences that flow from not doing that, and

00:23:23:02 - 00:23:35:12
Unknown
it ruins lives. I mean, you know, not only the the people that you injure or kill on the roads, obviously it ruins their lives and their family's lives, but also potentially yours as well.

00:23:35:14 - 00:23:50:16
Unknown
I mean, do you want to live with the reality of you hurting somebody out on the road because you didn't put in? You didn't take the, you know, day or two to put in place these foundational things that could have prevented it? I don't think you want that weighing on your conscience.

00:23:50:18 - 00:23:56:10
Unknown
So that's the type of stuff I would do if I were going to pursue that type of, business.

00:23:56:12 - 00:24:19:03
Unknown
Amazing. Thank you so much for this conversation. Every time, which has been two that I've heard you give advice. It's very eye opening for me. It's very informational and I'm sure it will be for everybody watching. Thank you so much for joining me. Happy to do it. Thanks for having me. Awesome. Thank you for everybody watching. Don't forget to subscribe to the channel so you never miss conversations like this.

00:24:19:05 - 00:24:34:07
Unknown
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