University of Alabama Career Fair

University of AL 9.24.14Students and alumni, stop by today’s career fair (September 24, 2014) and visit with Jeff Lantz and Gordon Jones. Learn about the career opportunities C. L. Services, Inc. has for you in the transportation brokerage industry. We’d love to take the time to show you your options.

Prison & Fine for Double Brokering!

Another Georgia Woman Sentenced in Double Brokering Scheme

On April 17th, Tina Blyth was sentenced in U.S. District Court, Albany, Georgia, to 24 months
incarceration, three years supervised release, and ordered to pay $57,450 in restitution for her
involvement in an illegal double brokering scheme.

The investigation revealed that Blyth accessed web sites advertising loads of commercial freight
available for transport. She bid on the loads using the names of her various companies that had Federal
Motor Carrier Safety Administration (FMCSA) broker authority. Once Blyth was awarded a bid, she led
the senders to believe her trucking business would deliver the freight for the contracted price and
accepted payment from the senders. After accepting the bid, she immediately re-advertised the job,
using a different company name. She hired legitimate trucking companies to pick up the freight and
deliver it to the intended destination, never disclosing she had received payment from the senders. As a
result, the legitimate trucking companies were never paid.

The Department of Transportation Office of Inspector General’s Office and the Decatur County Sheriff’s
Office jointly investigated the case.

TIA once again applauds the DOT IG office and the Decatur County Sheriff’s Office for their investigative
work and prosecuting these criminals.

Article courtesy of the TIA Newsletter. C. L. Services, Inc. is pleased to see strong action being taken against people who are illegally double brokering freight. We don’t tolerate it at and we will report violators.

CLS Can Handle Any Size Job

Recently we were called upon by a customer to move their employee training facility to their site. After some logistical coordination and preparation; this was not a problem for C. L. Services, Inc.

Atlanta Office — OPEN 1/29/2014

Due to dangerous road conditions our Atlanta staff is not at our headquarters today (1/29/2014). Because of our technology we fully operational. If you need anything please do not hesitate to contact us at 800-533-3922. Thank you!

We Report Unauthorized Brokering (Double Brokering)

Ouch $10,000 fine — EACH incident. Don’t risk it with our freight.

49 USC § 13901 – REQUIREMENT FOR REGISTRATION

(a) In General. — A person may provide transportation as a motor carrier subject to jurisdiction under subchapter I of chapter 135 or service as a freight forwarder subject to jurisdiction under subchapter III of such chapter, or service as a broker for transportation subject to jurisdiction under subchapter I of such chapter only if the person is registered under this chapter to provide such transportation or service.

(b) Registration Numbers.—

(1) In general. — If the Secretary registers a person under this chapter to provide transportation or service, including as a motor carrier, freight forwarder, or broker, the Secretary shall issue a distinctive registration number to the person for each such authority to provide transportation or service for which the person is registered.

(2) Transportation or service type indicator.— A number issued under paragraph (1) shall include an indicator of the type of transportation or service for which the registration number is issued, including whether the registration number is issued for registration of a motor carrier, freight forwarder, or broker.

(c) Specification of Authority. — For each agreement to provide transportation or service for which registration is required under this chapter, the registrant shall specify, in writing, the authority under which the person is providing such transportation or service.

49 USC § 14916 – UNLAWFUL BROKERAGE ACTIVITIES

(a) Prohibited Activities. — A person may provide interstate brokerage services as a broker only if that person—

(1) Is registered under, and in compliance with, section 13904; and

(2) has satisfied the financial security requirements under section 13906.

(b) Exceptions. — Subsection (a) shall not apply to—

(1) a non-vessel-operating common carrier (as defined in section 40102 of title 46) or an ocean freight forwarder (as defined in section 40102 of title 46) when arranging for inland transportation as part of an international through movement involving ocean transportation between the United States and a foreign port;

(2) a customs broker licensed in accordance with section 111.2 of title 19, Code of Federal Regulations, only to the extent that the customs broker is engaging in a movement under a customs bond or in a transaction involving customs business, as defined by section 111.1 of title 19, Code of Federal Regulations; or

(3) an indirect air carrier holding a Standard Security Program approved by the Transportation Security Administration, only to the

extent that the indirect air carrier is engaging in the activities as an air carrier as defined in section 40102(2) or in the activities defined in section 40102(3).

(c) Civil Penalties and Private Cause of Action.— Any person who knowingly authorizes, consents to, or permits, directly or indirectly, either alone or in conjunction with any other person, a violation of subsection (a) is liable—

(1) to the United States Government for a civil penalty in an amount not to exceed $10,000 for each violation; and

(2) to the injured party for all valid claims incurred without regard to amount.

(d) Liable Parties. — The liability for civil penalties and for claims under this section for unauthorized brokering shall apply, jointly and severally—

(1) to any corporate entity or partnership involved; and

(2) to the individual officers, directors, and principals of such entities.

Our SmartWay Partnership Renewed, Again!

C. L. Services, Inc. — caring about the environment since inception in 1997, officially recognized by the EPA since 2009. C. L. Services, Inc. has just completed the detailed process of SmartWay renewal, four years in a row! We take a lot of pride in this designation — many of our customers require that we partner with SmartWay to maintain our business relationship with them as part of their sustainability programs. If you are a shipper and environmental sustainability has risen to the top of your priority list, consider talking to one of our sales representatives about how C. L. Services, Inc. can help you achieve your goals on the transportation side of your business.

We carry a $100,000 Bond, is the industry ready for the increased $75,000 limits?

As members of the TIA, we receive updates we feel important to pass along to those who read our blog. We received the following on Friday, August 23, 2013.

In TIA’s effort to support the brokerage industry, TIA staff recently had a briefing with the FMCSA regarding MAP-21 implementation and the new $75,000 bond requirements. The new requirements go into effect on October 1, 2013 as planned. There is a possibility of a 30-day grace period, but that has not been confirmed. Brokers and Freight Forwarders are still strongly encouraged to get their $75,000 bond in place by October 1 to ensure that their authority will not be revoked.

TIA is here to help you through this transition with an affordable, fully-funded, and secure bond that meets all FMCSA requirements: the TIA Bond. You do not need $75,000 as an upfront deposit and there is no collateral. In order to get your quote, visit www.tiabond.com and submit the online application. You’ll receive a quote by email.

CLS Hires CargoNet for Extra Layer of Freight Protection

Cargo theft in the United States in 2012 was valued at approximately $216 million, including both cargo loss and vehicle value. Often times considered a victim-less crime, it may be difficult to get the full attention of law enforcement in the unfortunate circumstance that your freight is stolen.

C. L. Services, Inc. has engaged CargoNet to assist with loss prevention and, if necessary, recovery. We have valuable information we are more than pleased to share with you regarding data collected on United States Cargo theft for 2012 (example, best days to ship to keep your freight safer), don’t hesitate to contact us at 800-533-3922.

Jeff Lantz Goes to Washington to Attend TIA “Fly-in” Read All About It!

60 TIA members and associates participated in the TIA Washington Fly-in.  We met with 75 Members of Congress to discuss the need for fully funding infrastructure investment, the important safeguards the industry achieved in MAP-21, the next transportation bill, and the importance of the brokerage-based 3PL industry.  The one day meeting was a full court press.  We broke the members into ten teams each with a member or staff leader.  Everyone participated.  The Fly-in meetings are an essential part of TIA’s advocacy efforts – staff can represent you, but you are the best at telling your own story and establishing a real connection with your Member of Congress.  I hope next year that we will have 120 members!

Jeff Lantz and Senator Boozman

FMCSA Administrator Ferro kicked off the event the evening before with a frank and open discussion – we would expect no less – with TIA members about the issues FMCSA is handling.

  • Hours of Service: The new rules will go into effect on July 1, 2013, so you need to be ready.  Administrator Ferro told TIAmembers that the Agency was confident that it would win in court against the American Trucking Associations’ suit to stop the rules.  Since the court did not stay the rules pending a decision, unless the court issues a decision this week or next, the rules will go into effect July 1.  Administrator Ferro said for the majority of carriers the rules will have little or no effect, but for a significant few, the new rules will improve safety.
  • CSA: Administrator Ferro talked a lot about CSA stating that the safety fitness determination (SFD) rulemaking should be out in the first quarter of 2014.  This summer, FMCSA will make changes to the way CSA data is displayed.  When questioned about crash data, Administrator Ferro stated that there is no subjectivity; every crash is displayed, which is fairer to all carriers.  The Administrator stated that the Agency understands the concerns brokers have with regard to carrier selection liability, and reiterated that getting CSA right is the way to address carrier selection.  Administrator Ferro added, however, that “Your role in carrier safety is foundational.”  The SFD rulemaking will establish clear thresholds for determining carrier safety rather than the current relational system.
  • MAP-21 Implementation: Administrator Ferro stated that the bond rules for brokers and forwarders are self-implementing; every broker and forwarder needs the $75,000 bond/trust byOctober 1, 2013.  Rules will be issued in September to implement the other parts of the statute, but these will be final rules without comments
  • EOBRs: The rule making is expected to be released in November of this year.
  • Unified Registration System: We are weeks away from seeing the final rule in the first part of this rulemaking.  The second rulemaking, Unified Registration System II, through which MC numbers will be eliminated, will be issued this summer with a two year implementation date.

Chairman Shuster: House Transportation and Infrastructure Committee Chairman Bill Shuster spoke to TIA members at dinner.  Chairman Shuster thanked TIA for the work it did with the Committee to gain passage of MAP-21.  He spoke about the water resources bill currently before the Committee, and the need for TIA to begin working with the Committee and our industry partners on the transportation reauthorization bill.

Rep. Ribble (R-WI): Congressman Ribble also spoke to TIA members at dinner.  He spoke about how he, as a member of the Roofing Contractors Association, sat in the very same room listening to a Member of Congress as part of that association’s fly-in.  Rep. Ribble spoke about the importance of small business in the health of the American economy, and praised TIAmembers for being active in DC.

Chairman Petri (R-WI): Chairman of the Highways and Transit Subcommittee spoke to TIA members Wednesday morning, and offered support for TIA’s liability reform efforts.

Rep. Schneider (D-IL): Spoke to TIA members at lunch, and mentioned that he worked with a TIA member in Chicago before running for Congress.  He gets it!

Rep. Davis (R-IL): Also spoke during lunch about TIA and our efforts on your behalf in Washington.

Speaker Boehner (R-OH): Several TIA members met with Speaker Boehner in the Capitol Hill Club.  The Speaker chatted about small business and posed for pictures.

 

Happy & Safe Fourth of July!!

Everyone at C. L. Services, Inc. wishes you a happy and safe Independence Day.