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Ray says it short and sweet, "Great Job!"
Companies & Owner Operators:
What are the
5 MONUMENTAL REASONS
A HEALTHY CVOR RATING?
Prevention is the Cure:
3 VALUABLE CVOR COURSE PACKAGES AVAILABLE
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What is "MTO Action?" The Ministry of Transportation of Ontario (MTO) calls it "Interventions and Sanctions."
Did you know that the MTO can come to your office on any business day and start to perform a Facility Audit? They don't have to give notice or ask permission. Just the fact that you own a CVOR and operate a trucking company gives the Ministry of Transportation of Ontario (MTO) the permission to audit at any time that they think it necessary.
But why do they pick your business? MTO have their "Intervention" tactics. Interventions can start when your Threshold goes above 35%. Yes, at 35% you have gotten the MTO"s attention. More inspections at the scales and a Warning letter. More interventions happen at 50%, 70%, and 100%.
A sanction is the most severe disciplinary measure that the ministry may impose. It may result in:
Don't let the CVOR Threshold go above 35%. You don't need the unwanted attention.
For more information regarding "intervention" get your copy of the CVOR Cheat Sheet.
There are a few violations that seem to get more attention from the MTO than others.
For example, a wheel separation. Yes, a set of tires coming off one of your vehicles will certainly get attention. And you know that you can be fined up to $50,000. Why do you think the penalty is so high? It maybe that the government believes that wheel separation is preventable and they want trucking companies to pay more attention to this.
Another violation that will destroy you CVOR Rating is being involved in a fatal crash.
And how about a speeding ticket in a construction zone? Speeding 50 km/h or more? You know that we are talking trucks on this site and it happens. Truck drivers do make mistakes, and they have been ticketed for more than 50 km/h over the limit.
There are many more violations that can destroy your license, but I think that you are getting the idea.
It is not so much that any one violation will ruin your CVOR, but certain infractions get the attention of the Ministry of Transportation of Ontario (MTO), and then they come a perform an audit. How well will your company make out in a facility audit? For even the best of the companies, they usually find some violations and then levy fines and issue tickets. Of course, the convictions will ruin the violation threshold and likely your Rating as well.
You know it happens. Maybe you have seen one of your friends be put out of business by the insurance companies? You are aware that an insurance company doesn't put you out of business, but when they put the rates to a fee level that you can't afford to pay or that puts you in an uncompetitive position, you go out of business.
Sometimes it is the safety personnel that is telling you that you are not compliant or that you need to be doing more training of your drivers and office staff?
The insurance companies have an important role in trucking. They are in business to make a profit just as you should be. (Yes, profit should be everyone's goal!) So when an insurance company is encouraging you to do more, their purpose is that you have fewer collisions. Yes, they want you to crash less frequently thus enhancing their profit and more importantly giving you the opportunity to stay in business and make money yourself!
You know the MTO. They are one of the enforcement agencies of the government. Are you afraid of the MTO? If you are perhaps, you need to look at your operations. Many trucking companies are not afraid of the Ministry. They know that they may receive a ticket or two if the MTO comes and performs an audit, but because the trucking fleet is very aware of the laws and what the Ministry and government need the company knows that generally that they will do well.
How do you your drivers and trucks do when the MTO calls you in at the scales? How are your drivers behaving on the highways? What will the outcome be if you were to be audited?
The answers to these questions can often be seen before hand in the Level 2 CVOR. You need to know everything about this government license. How to read it and analyze the darn thing. If you can do this, then you may keep the MTO aware from you and your company.
Shippers are getting better educated. You may think that it is because of law suits. Freight owners are getting regularly sued for hiring trucking companies that don't have a good CVOR rating.
For this reason, they are often asking for a Level 2 CVOR when transportation companies are quoting their business. Or they are looking at the public MTO site to see what you rating is. The MTO offers for free to the public this Rating Enquiry site. (Click Here for MTO ratings enquiry page.)
Any one with your CVOR number can look you your rating. If they don't know your number, they can find that out by searching on this site of the Ministry of Transportation of Ontario (MTO). (Click Here name search MTO page.)
So you see there are many resources that shippers may use to find your company rating. You need to protect your Carrier Rating so that you may get the best freight.
That brings us to drivers. Your drivers will stay with you longer if you are getting the better freight. What is "better" cargo? The loads that pay a reasonable money or merchandise that fills your lanes without many deadhead miles. You know that freight that you want and need to make your company profitable without driver turnover.
By now I think that you can see how the CVOR can be beneficial with hiring drivers or Owner Operators. If you are working for the better shippers, getting the best freight that pays fairly, then you will attract the very best in drivers. Afterall isn't that what the drivers want. Good pay with the excellent lanes of traffic.
And I always like to point out the obvious and offer a bonus feature. You get to stay in business!
You CVOR is a valuable tool and rating system. The insurance companies, MTO, shippers, and drivers are all well aware of the CVOr and its importance. You need to keep it in great shape.