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FMCSA Responds to the Wells Fargo Equity Research Report on CSA



March 26, 2012

The Federal Motor Carrier Safety Administration (FMCSA) has just released its review of the Wells Fargo Equity Research Report on the agency’s Compliance, Safety, Accountability (CSA) program. Accompanying FMCSA’s review is a letter from FMCSA Administrator Anne Ferro to Commercial Vehicle Safety Alliance President, David Palmer, who requested an FMCSA review of the Wells Fargo report. Both the letter and the review support the CSA program and refute the findings contained in the Wells Fargo report.

Based on the agency’s own analysis and research conducted by the University of Michigan Transportation Research Institute (UMTRI), FMCSA disagrees with the primary finding in the Wells Fargo report. FMCSA analysis shows significant statistical relationships between the Unsafe Driving and Fatigued Driving (Hours-of-Service (HOS)) Behavior Analysis and Safety Improvement Categories (BASICs) and crash risk for all carriers, as well as a subset of the largest carriers, while the Wells Fargo finding asserts that there is no statistically meaningful relationship between the Unsafe Driving/Fatigued Driving (HOS) BASICs and crash rates. 
 
Approximately 200,000 motor carriers have sufficient crash or inspection activity to be assessed in at least one BASIC of the SMS. This group of 200,000 carriers includes carriers of all sizes, and they are involved in over 90 percent of all crashes. FMCSA believes that the Wells Fargo assertion that “only 12 percent of carriers have sufficient inspection data to be rated” relates to the 92,000 motor carriers that have sufficient negative information (i.e. violations or crashes) for the Safety Measurement System to assign a percentile to a BASIC.  These carriers are responsible for 83 percent of the crashes.

FMCSA’s review responds in detail to the Wells Fargo report and its primary finding, and includes an appendix with graphs to show FMCSA’s and UMTRI’s results. Visit the CSA Website to read FMCSA’s review of the Wells Fargo report as well as Anne Ferro’s letter in support of CSA.


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