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Trucking Hours of Service

The hours a truck driver may spend behind the wheel per day or work per week are a basic building block of any supply chain. Shortening those hours can not only cut into a truck driver’s earnings but make delivering goods on-time while maintaining lean inventories even more difficult for motor carriers and costly for shippers.

The latest round of revisions to hours of service or HOS rules first introduced in the 1930s came in 2013. Portions of that rule redefining how drivers can use a 34-hour weekly restart were challenged by trucking organizations and suspended by Congress in 2015, pending a report on their impact by the Department of Transportation.

In 2015, the Federal Administration issued a final rule requiring truck drivers to log their on- and off-duty hours electronically by Dec. 18, 2017.  The rule, which fulfills a congressional mandate, was challenged by the Owner-Operator Independent Drivers Association, but upheld by a US Court of Appeals in October 2016.

Electronic logging is a major operational and cultural change for truck drivers, who have used paper logs to record their “duty status” since the 1930s. The transition to electronic logging devices or ELDs, which is expected to be complete by 2019, will pose challenges for shippers as well as drivers and trucking and logistics companies.

More precise logging -- and fewer opportunities to falsify logs and get away with it -- will mean tighter delivery schedules for shippers and less inherent flexibility in supply chains. Trucking operators and their customers will be pressed to improve route planning and reduce detention time at shipper customers and consignees.

As truck drivers feel the the clock eating into miles, motor carriers will be pressured to increase driver pay to compensate and to keep drivers. Drivers may become even harder to hire and keep on the payroll. Shippers may have to adjust their supply chains and cooperate more closely with carriers or pay higher rates.

An expected hit to productivity and truck and driver utilization will tighten truck capacity available to shippers as carriers prepare to comply with the rule and more and more ELDs are deployed. An unknown number of drivers are expected to leave the industry and an unknown number of HOS violators eventually could be shut down.

In the long-term, ELDs and the data collected by them and tighter hours of service enforcement will make truckers more productive, supply chains more efficient, and highways safer. In the short-term, however, the ELD mandate could crimp truck capacity at a time when freight demand is expected to rise, pushing costs and rates higher.

Slideshow: Hours of Service, Years of Debate: 1935-2013

News & Analysis

13 Dec 2017
The federal truck safety watchdog agency and its state partners have chosen to “phase in” enforcement of the mandate, with the FMCSA granting several, temporary delays or partial exemptions.
13 Nov 2017
False logs are an "epidemic," and shippers are vulnerable, speakers tell the JOC Inland Distribution Conference. The latest federal data back them up.
02 Nov 2017
As the Dec. 18 ELD mandate draws closer, Ryder System said it will equip all of its rental trucks with portable ELDs, helping short-term truck renters comply with the law.
28 Aug 2017
Roadside inspectors' group provides a detour around a pre-holiday logistical nightmare by delaying out-of-service enforcement for ELDs.
24 Aug 2017
Electronic logging devices will raise costs and complexity of renting trucks for seasonal business. Companies such as Ryder System want an ELD exemption for rental drivers.
03 Aug 2017
Shippers need to plan for multiple challenges when the electronic logging mandate takes effect.

Commentary

Although Uber Freight can certainly have a major impact on freight brokering, there are many factors that show the standards in the industry cannot be switched that easily.