Why Carriers should be Concerned about the Food Safety Modernization Act STF Rule
The Federal Drug Administration (FDA) proposed the Food Safety Modernization Act - Sanitary Transportation of Human and Animal Food (FSMA STF) rule in 2013 and a final rule was published April 6, 2016.
By April, 2017, shippers will be required to communicate their food safety requirements to carriers in the key areas of equipment, operations, and training. However, informed shippers are contractually getting carriers that transport temperature-sensitive loads to follow these rules now.
Uninformed carriers involved in hauling these certain food products risk not only losing valued contracts for noncompliance but may be taking on additional liability based on changes being made to shipping contracts based on these new rules.
What is most concerning for Motor Carriers with this new rule?
For motor carriers, the most concerning aspect is the potential increase in claims for cargo damage that may arise out of the new rule. In the rule, carriers must develop and implement written procedures that specify cleaning practices and how they will comply with temperature control requirements mandated by the shipper. This includes steps carriers are doing to hit temperatures – (like pre-cooling the trailer, etc).
Failure in developing, implementing and following these procedures by the carrier could result in a claim against the carrier.
There are three important required written procedures carriers must establish (if not already in place).
1. Appropriate sanitary condition procedures of vehicle and equipment used for transporting food, including any cleaning or sanitizing practices and inspection requirements
2. Procedures that make sure the previous cargo does not make current food cargo unsafe, when transporting food in bulk
3. Procedures verifying that food is transported under adequate temperature control when required for safety
According to a CCJ article, carriers are concerned that shippers might automatically consider loads adulterated if a carrier fails to keep the operating temperature within range such as “37 degrees Fahrenheit plus or minus two degrees” during transit. For example, a load of carrots and a load of mayonnaise do not carry the same food safety risks for operating temperature. Carrots do not become toxic if the temp falls out of range by a few degrees.
Compliance will most likely be easier for those carriers with established, dedicated bulk food hauling contracts who continually transport cargo from the same source. They are more likely to already have the knowledge and procedures in place that accomplish these new requirements.
Carriers who don’t haul bulk food on a regular basis will likely be the most affected simply due to being unaware of the compliance issues involved and accepting contracts that may place the entire burden of cargo liability on them should a lack of food handling compliance become an issue.
Don’t forget about driver training and record-keeping
According to the rule, carriers must train personnel on food safety issues, and this includes drivers. Carriers will need to train their drivers in how to safely handle food shipments. The FDA will eventually provide a course but gave no timeline on when this will be created.
Regarding record-keeping, records must be kept for 12 months on:
· shipper requirements for the shipment contract/agreement,
· written arrangements and procedures,
· clean equipment load records (this could include the multiple trailers it took to get load to the destination and even what other previous cargo you had - HAZMAT, etc), and
· carrier training records.
The biggest burden to carriers for all of this will be “the paper-chase”.
What could happen if you violate the STF Rule?
A failure by a shipper to dictate any of the required steps or failure by a carrier to follow through could result in fines, cargo claims and even criminal sanctions in cases where blatant mishandling is deemed the cause of sickness and/or death. Technically, the FDA can criminally prosecute and fine those who violate the rule with a max fine for individual of $100K or $250K if death, and for organizations with a max fine of $200K or $500K if death.
The most common result will likely be the increase in contractual litigations between shippers and carriers who dispute violations or damaged delivery based on the new rules. Anytime there’s litigation, the paperwork trail becomes a vital element in winning the case!
Are you exempt from the rule?
The rule has eight exemptions listed below:
1. Shippers, receivers, or carriers with less than $500,000 in average annual revenue
2. Transportation activities performed by a farm
3. Transportation of food that is transshipped through the US to another country
4. Transportation of food that is imported for further export and that is neither consumed nor distributed in the US
5. Transportation of compressed food gasses and food contract substances
6. Transportation of human food byproducts transported for use as animal food without further processing
7. Transportation of food that is completely enclosed by a container, except food that required temperature control for safety – like bulk transport of wrapped Ritz crackers
8. Transportation of live food animals, except molluscan shellfish
What do carriers need to do to get ready?
The use of trailer telematics is a common strategy for carriers to comply with FSMA and their shipper requirements. These systems can monitor and communicate data to and from reefer units like the temperature and operating conditions making record keeping and tracking more manageable.
With the potential increase in claims for cargo damage that may arise out of the new rule, carriers will need to understand the requirements and then focus on best practices for their specific operation.
The Federal Drug Administration (FDA) proposed the Food Safety Modernization Act - Sanitary Transportation of Human and Animal Food (FSMA STF) rule in 2013 and a final rule was published April 6, 2016.
By April, 2017, shippers will be required to communicate their food safety requirements to carriers in the key areas of equipment, operations, and training. However, informed shippers are contractually getting carriers that transport temperature-sensitive loads to follow these rules now.
Uninformed carriers involved in hauling these certain food products risk not only losing valued contracts for noncompliance but may be taking on additional liability based on changes being made to shipping contracts based on these new rules.
What is most concerning for Motor Carriers with this new rule?
For motor carriers, the most concerning aspect is the potential increase in claims for cargo damage that may arise out of the new rule. In the rule, carriers must develop and implement written procedures that specify cleaning practices and how they will comply with temperature control requirements mandated by the shipper. This includes steps carriers are doing to hit temperatures – (like pre-cooling the trailer, etc).
Failure in developing, implementing and following these procedures by the carrier could result in a claim against the carrier.
There are three important required written procedures carriers must establish (if not already in place).
1. Appropriate sanitary condition procedures of vehicle and equipment used for transporting food, including any cleaning or sanitizing practices and inspection requirements
2. Procedures that make sure the previous cargo does not make current food cargo unsafe, when transporting food in bulk
3. Procedures verifying that food is transported under adequate temperature control when required for safety
According to a CCJ article, carriers are concerned that shippers might automatically consider loads adulterated if a carrier fails to keep the operating temperature within range such as “37 degrees Fahrenheit plus or minus two degrees” during transit. For example, a load of carrots and a load of mayonnaise do not carry the same food safety risks for operating temperature. Carrots do not become toxic if the temp falls out of range by a few degrees.
Compliance will most likely be easier for those carriers with established, dedicated bulk food hauling contracts who continually transport cargo from the same source. They are more likely to already have the knowledge and procedures in place that accomplish these new requirements.
Carriers who don’t haul bulk food on a regular basis will likely be the most affected simply due to being unaware of the compliance issues involved and accepting contracts that may place the entire burden of cargo liability on them should a lack of food handling compliance become an issue.
Don’t forget about driver training and record-keeping
According to the rule, carriers must train personnel on food safety issues, and this includes drivers. Carriers will need to train their drivers in how to safely handle food shipments. The FDA will eventually provide a course but gave no timeline on when this will be created.
Regarding record-keeping, records must be kept for 12 months on:
· shipper requirements for the shipment contract/agreement,
· written arrangements and procedures,
· clean equipment load records (this could include the multiple trailers it took to get load to the destination and even what other previous cargo you had - HAZMAT, etc), and
· carrier training records.
The biggest burden to carriers for all of this will be “the paper-chase”.
What could happen if you violate the STF Rule?
A failure by a shipper to dictate any of the required steps or failure by a carrier to follow through could result in fines, cargo claims and even criminal sanctions in cases where blatant mishandling is deemed the cause of sickness and/or death. Technically, the FDA can criminally prosecute and fine those who violate the rule with a max fine for individual of $100K or $250K if death, and for organizations with a max fine of $200K or $500K if death.
The most common result will likely be the increase in contractual litigations between shippers and carriers who dispute violations or damaged delivery based on the new rules. Anytime there’s litigation, the paperwork trail becomes a vital element in winning the case!
Are you exempt from the rule?
The rule has eight exemptions listed below:
1. Shippers, receivers, or carriers with less than $500,000 in average annual revenue
2. Transportation activities performed by a farm
3. Transportation of food that is transshipped through the US to another country
4. Transportation of food that is imported for further export and that is neither consumed nor distributed in the US
5. Transportation of compressed food gasses and food contract substances
6. Transportation of human food byproducts transported for use as animal food without further processing
7. Transportation of food that is completely enclosed by a container, except food that required temperature control for safety – like bulk transport of wrapped Ritz crackers
8. Transportation of live food animals, except molluscan shellfish
What do carriers need to do to get ready?
The use of trailer telematics is a common strategy for carriers to comply with FSMA and their shipper requirements. These systems can monitor and communicate data to and from reefer units like the temperature and operating conditions making record keeping and tracking more manageable.
With the potential increase in claims for cargo damage that may arise out of the new rule, carriers will need to understand the requirements and then focus on best practices for their specific operation.
