According to the National Heavy Vehicle Regulator (NHVR), there are 165,000 organisations in the supply chain which are affected by the latest Chain Of Responsibility (COR) reforms, many of which still don’t seem to understand that they could be exposed to massive penalties for breaches in COR when reforms come in 2018.
This point was highlighted by NHVR Productivity and Safety executive director Geoff Casey at a recent conference when he stated: “What I would really ask you would do, right now, is to know where you sit in that supply chain and the chain of responsibility. Our worry is that the other people in the supply chain still don’t know it is coming, particularly your customers and the people you contract with”. Click HERE for the Full Story.
This warning comes hot on the heels of the $1million fines and costs now imposed on Remondis Australia for allowing overloaded vehicles of contracted trucking firm Jet Group Australia to carry its mulch between September 2013 and October 2014. Click HERE for the Full Article.
These 2018 Reforms, which we summarised in our last LSS COR Alert – Issue 1, include massive increases in maximum penalties for COR breaches and are broken down into the following 3 NEW categories per incident:
Category 3 – for breaches of “safety duty” – $50,000 for individuals and $500,000 for corporations
Category 2 – for breaches leading to “risk of death/injury” – $150,000 for individuals and $1.5m for corporations
Category 1 – for breaches of “recklessness” – Up to 5 years imprisonment and $300,000 for individuals and $3m for corporations
ARE YOU COR READY?
COR laws mean that your business shares a responsibility with other parties in your supply chain for the compliance of trucks operating within your supply chain, even if the truck is operated or organised by an outsourced provider such as a supplier to your business or a carrier you engage. This responsibility cannot be contracted out. COR applies to Load Restraint, Axle/Gross Weights, Dimensions, Fatigue Management and Speeding. Equipment Maintenance will also be part of COR in 2018.
Being “COR Ready” means your business having a COR system to manage truck compliance within your supply chain. The Logistics Safety Solutions (LSS) COR System is used by LSS clients to manage COR within their supply chains. Over 1,700 businesses are registered with the LSS COR System.
To arrange a FREE LSS COR consultation please click here.