I chuckle each time I see this happen. A company gets in legal trouble, sells the property to someone they can trust, then reopens the operation like nothing happened but a name change. Well folks, JPL Logistics LLC (USDOT No. 3466122), out of Houston, Texas, was just served with a fresh Federal Motor Carrier Safety Administration (FMCSA) Out-Of-Service (OOS) Order on May 31. So why does this make me laugh?
Didn’t they just get shut down…
Back on May 12, 2022, Noi Mahoney, FreightWaves’ Markets Reporter, wrote an article on Jaypur Logistics’ OOS order that named the company “an imminent hazard” and ordered the company to cease operations. Jaypur Logistics had 18 drivers operating a fleet of 18 power units pulling flatbeds, dry vans and refrigerated trailers.
Jayapur unfortunately also had almost double the national average rate for equipment OOS orders and OVER FIVE TIMES the national average rate for driver OOS, with numerous citations for driving under the influence of alcohol and drugs. Six of the drivers were prohibited from operating heavy trucks.
In the FMCSA press release, the agency stated that Jaypur had no program for verifying driver wellness, monitoring hours of service, or even making sure their own equipment was in working order. Well, what happens when you get in trouble so deep you can’t dig your way out? At least at Jaypur, you simply change the name on the sign.
If at first you don’t succeed…
That brings us back to the present, when a Jaypur Logistics truck was caught operating after the OOS order was in effect. The driver was released when he gave officers the new JPL Logistics DOT number. This was literally hours after the FMCSA had shut the company down, and understandably, the FMCSA staff was not happy. So did Jaypur already have this new company in their back pocket, ready to go?
First of all, knowingly and willingly violating the order means a company can be cited for a few criminal charges. Next, it’s a penalty of up to $29,893 for each violation of the OOS. Add on no less than $11,956 for “providing transportation in interstate commerce” without an operating authority (MC number). Finally, the company can be fined up to $16,846 for operating a CMV in interstate commerce without a USDOT number.
So the lesson here folks is to run a safe, effective operation. Do your due diligence. Make sure you’re following the laws. And if you don’t know, go hire a lawyer knowledgeable in transportation-related legal matters. Here is the link to Noi Mahoney’s June 2 article about the most new OOS order for JPL Logistics.