In an unprecedented five-day blitz, 300 FMCSA agents visited the sites of over 1,400 commercial driving schools. By the initiative’s end, 550 schools were decommissioned.
As the industry still reels from the bombshell, it’s essential to understand the repercussions to carriers in a tight market.
Here’s exactly what happened and what to expect.
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What Happened During the FMCSA Sting Operation?
During the blitz, FMCSA agents performed on-site inspections of suspicious schools. To schools found noncompliant, a notice of proposed removal from the FMCSA registry was issued.
Of the 550 schools that were discontinued, 109 voluntarily terminated their registration before the FMCSA could act.
The scope of the initiative was rattling for much of the industry. Many carriers are still trying to understand why the FMCSA is taking such drastic action now.
Why is the FMCSA Discontinuing Schools?
Though this string operation was surprising, it wasn’t spontaneous. The FMCSA has been working to remove thousands of questionable CDL training schools over the years.
Federal agents are worried that unscrupulous training will pose major safety threats to the public. In fairness, their findings seemed to corroborate their concerns.
FMCSA workers discovered that many schools were skipping critical training, including hazmat procedures. Some weren’t licensed. Others didn’t have any trucks. A few even used fake addresses.
For all the good higher training standards will bring, the current consequences of compressing available training will create new issues for truckers.
How Will the Sting Operation Affect Truckers?
With fewer schools available, this may create a bottleneck for new truckers entering the market. Training may become more expensive as demand increases, further restricting the supply of new truckers.
With additional federal scrutiny, additional resources will be allocated to training, introducing new costs for fleet owners.
In a market where margins are already tight, the addition of any new expense will be problematic.
How Will Truckers Cope with the Rise in Training Costs?
As margins continue to squeeze trucking budgets, factoring services can ease the pressure.
Rather than operate on the spare change of tight margins and long payment windows, carriers can enjoy faster payments for their loads with factoring. With healthier cash flow, truckers can also take on new loads and grow their businesses in a challenging market.
Additionally, factoring can insulate truckers from volatile market conditions, such as government sting operations, by providing them with the cash they need to cover sudden costs.
Getting started with factoring only takes four easy steps:
- Complete the delivery of your load.
- Submit your rate confirmation and Bill of Lading to ECS.
- Provide an invoice to ECS or let us create one for you.
- ECS deposits your funds directly to your bank account or ECS fuel card.
Tired of having to deal with the costs of constantly changing market conditions? Factoring services get you faster payment for your loads, protection from fraud, and more business.
Select your fleet size below to get started.
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The FMCSA is cracking down on trucking safety at unprecedented levels.
As truckers continue to grapple with changing market conditions, factoring can provide relief, even amid government sting operations.
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The England Carrier Services (ECS) division offers various services for carriers ranging from maintenance to support. As ECS members, carriers have access to nationwide discounts on fuel and tires from dedicated team members committed to finding the best price. ECS also provides factoring services with benefits such as same-day funding to a bank account or fuel card. These options allow carriers the freedom to focus on growing their business while saving time and money.