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hours of service

#BGInvestigates: How Regulations Affect the Transportation Industry

The transportation industry is no exception when it comes to government regulations. In the coming year, many regulations will be enforcing drastic changes in the transportation industry. These changes will impact the bottom line of truck drivers, carriers, shippers, consignees and even consumers. As regulations increase, trucking companies are forced to increase shipping costs, in turn, driving the cost of products in the market to rise. BG Investigates points out why it’s important to be aware of new industry laws and regulations.

Many transportation regulations are highly controversial in regard to their costs and effectiveness. Specifically, the CSA 2010 law was passed in December of 2010 and remains a top concern. According to the FMCSA, a part of the US Department of Transportation, the Compliance, Safety, Accountability (CSA) initiative is a regulation that is working to further reduce commercial motor vehicle crashes, fatalities and injuries on our nation’s highways. The trucking industry (including common carriers) feel the impact of this regulation as drivers are taken off the road due to safety concerns. Although this helps to increase safety, the loss of truck drivers due to CSA regulations has caused driver and capacity shortages.

“We are really starting to see the impact (of CSA 2010) in the industry right now. Every day we are seeing carriers that are being rated down to conditional and last week we saw five carriers shut down by the DOT for unsafe ratings. Obviously that increases the capacity constraints we have in the market by reducing the amount of drivers on the road and causes an increase in rates,” says Chris Reeves, Director of Specialized Services.

The debate continues on many other government policies. The Hours of Service regulations published in December 2011 were enforced to control the amount of hours a driver can be in operation. The HOS rules cause changes in the current transit times for shipments, as drivers are not able to travel as long. There are severe penalties for both the driver and carrier for violations. Industry groups argue that these regulations should change before they officially go into effect July 1, 2013.

BG Investigates uncovered the following transportation industry regulations that all readers should be aware of for 2012 and beyond:

  • Stability Control Standards – Technology mandate controlling stability on heavy-duty tractors to preventing rollovers of trucks and trailers.
  • Mandatory Speed Limiters – Controlling the speed of trucks to prevent accidents.
  • Crashworthiness Standards – Standards, similar to automobiles, that help protect truck drivers involved in accidents
  • EOBR RegulationsElectronic on-board recorders tracking the time truck drivers are on the road.

The laws and regulations of the transportation industry are constantly changing. Whether you are a truck driver, carrier, shipper, consignee or consumer, you should consistently be informed to be compliant and understand the effects it may have on your business model.  BG Investigates will continue looking and reporting the status of new transportation laws and regulations that affect you, so keep an eye out for future articles. Contact one of our knowledgeable representatives at BlueGrace Logistics with any questions about industry regulations or call 800.MYSHIPPING.

– Ben Dundas, Sr. Marketing Analyst

Not the end of Hours of Service (HOS) Rules Changes

Who has seen the new HOS (Hours of Service) rules that just came out by the Federal Motor Carrier Safety Administration (FMCSA)? The trucking industry has been waiting to see what the FMCSA was going to do with the HOS rules that they currently operate under. I am not going to get into the details of the changes, but I am going to make this point. If trucking was so unsafe that the FMCSA had to get together to make changes to the law, then why did they make the effective date start 1.5 years in the future? Personally it does not seem to be that big of a safety issue if drivers are going to continue to operate under the same rules till July 2013 before they have to change.  With the Millions of drivers on the road that is a lot of unsafe driving till July 2013.

If we are going to make change, let’s change. I said I am not going to let you know the details and the main reason is because the rules will change before this ever goes into effect.

Trucking Industry be aware. This is not the end of the HOS rules changes. More to come!!!

– Chris Reeves, Director of Specialized Services
Twitter: @BGtruckload