In previous columns, I’ve written about every board’s duty of foresight and how the TIA Board is meeting that duty. In my last column, I wrote about the first of five strategic megatrends that the Board identified. This month, I will continue the discussion, focusing on the following megatrend: What Should TIA Do to Help Members Respond to the Marketplace Risks that They Face?
You face the risk of being sued for negligent selection in a truck accident. You face cyber security threats. You face the threat of agreeing to things in a contract for which you have no insurance.
What we ultimately need to address is tort reform as it relates to truck liability lawsuits. Since this actually requires an Act of Congress and action at the state level, it may take a while.
TIA continues to push for congressional enactment of a Carrier Selection Standard, which would go a long way toward limiting your exposure by specifying that you could only engage with motor carriers that are properly licensed, insured, and have a better than unsatisfactory safety rating from FMCSA. While we have bi-partisan support, we still need a legislative vehicle to attach to, and our Government Affairs team is working diligently toward this goal.
At their annual meeting, ATA announced their intention to address tort reform at the state level, and we’ve offered to help.
Short of legislation, TIA offers members a Carrier Selection Framework. The Framework provides a step-by-step walkthrough of how to put your own carrier selection process in place and lock it into your TMS.
We’ve recently filed amicus briefs in cases before the Sixth and Ninth Circuit Courts of Appeal. These cases argue that state tort law is pre-empted by the F4A Act. We’ll see how that goes.
TIA has partnered to offer cyber insurance to members to protect from cyber-related risks.
TIA offers model contracts that help prevent members from going into a transaction blind or without an idea what should be in a contract. We update these contracts annually.
TIA offers free monthly webinars, many of which have addressed mitigating marketplace risk and insurance options.
In its most recent meeting, the Board addressed this megatrend and identified other ideas for consideration in developing our next strategic plan. There was a suggestion that TIA Watchdog be expanded. It also was suggested that TIA further develop its knowledge network related to marketplace risks so that it is easier for members and their attorneys to find information. It was suggested that TIA member attorneys offer special blocks of time for members. It was suggested that TIA look at developing new insurance products to protect members. The Board will begin narrowing these options down and putting them in a timeline for implementation.
As this is the first issue of 3PL Perspectives for 2020, let me wish you all a happy, prosperous, and safe New Year! I hope to see all of you at the TIA Capital Ideas Conference & Exposition, April 1–4, in Austin, Texas.