To help you keep tabs on government rulemaking, we have put together this brief guide to freight-related regulations currently moving through the legislative process.
In last week’s post we summarized the progress of three broad initiatives: reauthorization of the Transportation Bill, Compliance, Safety, Accountability (CSA), and new rules from the California Air Resource Board (CARB). This week we take a look at Hours of Service Rules, truck weight standards, and proposals for the introduction of electronic on board recorders.
1) Hours of Service (HOS) Rules
What it is:
In an effort to mitigate accidents caused by driver fatigue, the Federal Motor Carrier Safety Administration (FMCSA) has set rules to limit how long commercial drivers can operate their vehicles. The agency proposed additional HOS rules in December of 2010. The final rule is slated to be issued in October of 2011 after all public comments are collected and responded to by FMCSA. The two major proposed changes would be the reduction from 11 to 10 hours of allowable consecutive drive time, and the inclusion of two midnight to 6AM time periods as part of the 34-hour weekly restart (i.e. the weekly mandatory break that drivers have to take).
Proponents of making changes to HOS:
The proposal to change Hours of Service stemmed from a series of lawsuits brought by Public Citizen, other safety groups, and the Teamsters that have challenged the regulation. The proposed changes are the result of a settlement between the plaintiffs and the FMCSA for the most recent lawsuit. They would like to see more stringent HOS rules..
Opponents of changing to current HOS:
Those in favor of the current rule say that safety performance has improved since the transportation industry started operating under the current system, and that proposed changes are unnecessary, will reduce available capacity and cause increased costs.
Status:
The latest HOS proposed rules were supposed to have been issued and completed by late July as part of a lawsuit settlement that challenged the previous rulemaking process. Following large scale opposition to the proposed rules from across the freight industry, FMCSA added more technical data to the record and re-opened the public comments. These actions have pushed back the issuance of the final rule until October of 2011. The current requirements stay in force for the time being.
Possible Impact on the shipping community:
The proposed changes would result in decreased productivity, but the level of losses will vary widely based on individual distribution networks, patterns, and operations. Any change in the HOS rules could affect the amount of driving time available to carriers, and how loading and unloading time is counted as rest. The new rules will affect each network differently based on the mixture of long versus short hauls, multi pick versus single pick, loading and unloading times, etc.
2) Federal Truck Weight Standards
What it is:
The focus of this effort is to change the maximum truckload gross weight from 80,000 lbs to 97,000 lbs with an additional axle. Two identical bills have been re-introduced in this Congress: HR 763 and S 747.
Proponents:
Supporters of the new rules believe that the potential savings to shippers are tremendous and may amount to 25% cost savings. There is also a sustainability component since fewer trucks on the road would lead to reductions in fuel consumption and carbon emissions. Proponents also believe that cutting the number of trucks on the road equates to improvements in safety.
Opponents:
Opponents believe that heavier trucks will result in more severe accidents and that highways will be less safe. The opposition camp is also concerned about the impact of heavier trucks on the country’s aging infrastructure.
Status:
House Transportation Committee Chairman Rep. John Mica has publicly said that increasing the weight limits will not be in his version of the transportation reauthorization bill, and it is unlikely to pass as standalone legislation. Most observers believe that raising the weight limit nationally will be extremely difficult and that case-by-case actions – akin to the one enacted by the State of Maine – are more likely to be adopted incrementally over time.
Possible impact on the shipping community:
Many of the shippers and carriers we work with are familiar with this legislation. As some of you may know, carriers today are hauling 52,000 pounds of freight by trimming all extra weight from their tractor and trailer.
3) Electronic On Board Recorders (EOBR)
What it is:
FMCSA issued a draft rule in February of 2011 outlining a requirement for all commercial trucks to utilize EOBR’s to track drivers hours within three years after the final rule is issued.
Proponents:
Proponents believe that many carriers have adopted EOBR’s already, and that recorders will improve Hours of Service compliance.
Opponents:
Opponents argue that the cost associated with EOBR’s will be prohibitive for small owner operators. In addition, some recording devices also incorporate a track and trace component, and many drivers fear privacy and “big brother” type intrusions.
Status:
Not much progress has been made since the proposed rules were first published. The comment period has been reopened to address concerns about driver privacy issues. After comments close, the final rule could be issued before the end of the year.
Possible impact on the shipping community:
Any cost impact would be mitigated by the three-year implementation period. This should give carriers plenty of time to save and plan for the cost of the equipment.
We hope this quick guide to ongoing freight regulation provides a good baseline of information, and we’ll continue to provide additional updates when appropriate. Please post your thoughts or questions or connect directly with Jason Craig for further information.
Jason Craig is C.H. Robinson’s Government Affairs Manager. This summary represents his opinions, thoughts, and observations, that are not necessarily those of C.H. Robinson Worldwide, Inc.
