When "costs" become COSTS!!!

Posted on August 12, 2010 08:00 by Dr. I

As with most business in America, shrinking margins require managers and leaders of the transportation industry to precisely manage overhead costs to ensure the business makes a profit.  Costs constraints, as they are known, require trucking companies to do more with less.  This often results in fewer drivers handling more loads, sometimes exceeding hours of service or the driver's physical capabilities.  The dilemma for leaders managing costs may be whether more costs are expended on the front end, to hire enough drivers and ensure they safely operate the vehicles, in an effort to avoid the big COSTS. 

Below is a link to an article describing how Swift Transportation was hit with a $15 million dollar verdict in a case where allegations included the Swift driver was on methamphetamine.   The article not only addresses some of the facts, but it primarily discusses the resulting appeal and the risks associated with trial judge evidentiary rulings.  This circumstance raises many questions, one of which may be, what might the carrier have done to preclude the driver from pushing her driving hours to the extent of needing methamphetamine?  Could the carrier formulate any protocol, or expend some costs on the front end, to better avoid this type of accident and resulting litigation?  Which costs are more expensive; front end hiring/training/monitoring or handling the post-accident injuries, damages and litigation costs?

http://www.judicialview.com/Court-Cases/Civil-Procedure/Trucking-Company-Appeals-$15-Million-Accident-Judgment/10/13247

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Categories: Trucking Law

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