The stock market is down like, a gazillion points – no news there. But, have you checked your intervention threshold porfolio today?
S&P has been busy downgrading everything else over the last few days but Hazardous Materials wasn’t one of them. It’s the FMCSA who’s apparantly stepped in to take a closer look at carriers who should or should not be classified as a HM carrier.
While the investigation is ongoing, it would appear from initial reports that your MCS-150 is no longer the final determination of your carriers HM status. Rather, the Agency is now designating you as a HM carrier if there are “Inspections in the past 24 months where Placardable Quantities of HM were found”
Here’s a recent screen shot of the revamped SMS information:
The impact of this modification can be significant, as you might imagine. If you’ve been freshly labled as a HM carrier (and you weren’t previously) your CSA “Alert” threshold has just been lowered. We’ve seen multiple instances of a carrier now at “Alert” in one or more BASIC categories since their “Alert” thresholds have fallen by 5%.
It should be noted that this latest change appears to cut both ways. We’ve also seen carriers move from a HM designation to non-HM based upon the same rule. No inspections in the last 24 months with placardabe quantities of HM equals a non-HM designation, resulting in higher “Alert” thresholds.
It’s assumed this change is in advance of the Agency’s stated move towards a HM BASIC under CSA. Within Vigillo’s customer base we’ve seen almost 300 carriers shift “Alert” thresholds (up & down) as a result of this surprising modification.
Stay tuned for further updates as they become available. In the meantime, check your HM status and thresholds!