Despite opposition from numerous trucking groups, the fifth set of changes to the hours-of-service regulations since 2003 is still on track with an effective date of July 1st. Among the revisions include a restart provision containing two consecutive breaks between the hours of 1 a.m. and 5.am., reducing a driver’s work week from 82 to 70 hours, as well as a mandatory 30-minute break if 8 hours or less have passed since the driver’s last off-duty period.
As Ron Sucik, founder of RSE Consulting explains, while the CSA will further increase driver shortage by taking unsafe drivers off of the road, the upcoming HOS will reduce productivity of those remaining.
What Can Be Expected
Carriers can see a 5-10% loss in productivity, according to the Owner-Operator Independent Driver Association, due to scheduling and delays resulting from the HOS changes, with impacts hitting long-haul carriers hardest as well as dedicated moves which are planned with maximizing a drivers’ 11 hours within a 15 hour work day.
With a shorter workweek, and no way of guaranteeing that a driver will exactly take a 30 minute break instead of longer, appointments and routes will need to be readjusted to accommodate delivery windows.
The National Grocers Association noted that these changes would disproportionately impact its members. “Grocery stores rely on deliveries early in the morning, especially for perishable goods that have a limited shelf life and must be on the shelves when stores open. With the changes to the rule, lead times for perishable goods will increase, leading wholesalers to increase inventory levels to maintain service. All of these changes would lead to increased costs throughout the supply chain.”1
To accommodate for the driver shortage and capacity concerns, carriers will need to recruit additional drivers to their fleet, pay current drivers more in order to retain them, as well as “add trucks to offset the decrease in available hours per driver.”2
Carriers are expecting up to a 33% loss in revenue with additional operated costs estimated to hit between $10,000-$25,000 per truck. 2 In order to account for these costs, shippers can expect to see rate hikes between 4-10% this year.
Carriers are expecting up to a 33% loss in revenue with additional operated costs estimated to hit between $10,000-$25,000 per truck. 2 In order to account for these costs, shippers can expect to see rate hikes between 4-10% this year.
To help prevent your business from being caught in a driver shortage, and to save money in the long term, shippers should consider the following tips:
-Establish carrier meetings in advance. Stop bidding out your business year. Instead, establish and grow your relationship with a specific carrier(s).
-With that being said, work hand-in-hand with carriers to schedule routine shipments. If a carrier knows that a particular lane will run a specific time each week or month, they can schedule backhaul, cutting back on costs for both the carrier and shipper.
-If you do not have a load that ships on a specific time of week/month, it is best to plan your lanes ahead of time. Giving carriers a day or more notice can help them position their equipment efficiently.
-It is also beneficial to add additional carriers in cases where your primary carriers do not have the availability.
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To view all of the 2011 HOS Final Rule Provisions, click the image on the right.
Are you having difficulty finding experienced carriers to move your freight in times of the driver shortage? Visit www.roadscholar.com to request an LTL or truckload rate today.
How do you think the upcoming hours-of-service changes will affect your company? What are you doing to prepare for the July effective date?
2http://blog.trinitylogistics.com/2013/04/regulatory-review-how-new-hours-of.html
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