Four trucking companies based in Olathe, Kan., have been ordered by the Federal Motor Carrier Safety Administration to cease operations immediately. The agency is leaning on its “chameleon” carrier rule that is designed to prevent carriers previously shut down to reopen with the same equipment and operation but under a different name.
Royal Transport; Nationwide, Inc.; Freight, Inc.; and Midwest A, Inc.; were all deemed to be functioning under the same control to avoid “negative compliance history,” FMCSA says. Moreover, Freight, Inc., and Midwest A were created to dodge out-of-service orders issued to Nationwide for failure to pay civil penalties.
The carriers were operating the same trucks, using the same drivers and had the same operational and management structure as Royal.
Nationwide was placed out of service in July 2008, FMCSA says.
"Until a formal regulation is established with clear guidelines and borders ...