Since 2005, the American Trucking Associations has turned to the
American Transportation Research Institute (ATRI) to survey trucking industry
stakeholders to identify the top issues of concern. And for the 2013 annual
survey, there was no shortage of topics for the industry to choose from.
First and foremost were the changes to the federal Hours-of-Service
rules which took effect July 1st of this year. Included in the new
rules were limitations placed on the use of the 34-hour restart and a mandated
30-minute rest break for drivers before driving after 8 hours on duty. While
the safety impacts of the HOS changes have yet to be fully understood, the
productivity impacts were immediately felt. Prior to the July 1st
changes, ATRI published research which quantified potential impacts from the
new rules, including productivity costs to the industry of as much as $376
million annually just for the restart changes. Compared to the potential
benefit to the industry of $133 million estimated by the Federal Motor Carrier
Safety Administration (FMCSA), it's clear to see why industry had concern.
That concern was not unfounded. On November 18th ATRI
released its latest HOS analysis, this time clearly documenting actual impacts
on motor carriers and drivers operating under the new rules. Among those
impacts: 80 percent of carriers reported a productivity loss; nearly 70 percent
of drivers reported pay decreases; and more than 80 percent of drivers reported
a negative impact on their quality of life, with 66 percent reporting increased
fatigue levels operating under the new rules. The impacts on driver wages alone
for all over-the-road drivers could total $1.6 billion to $3.9 billion in
annualized loss. These real-world impacts were the subject of a November 21st
congressional hearing by the Small Business Committee's Subcommittee on
Contracting and Workforce.
But hours-of-service isn't the only issue facing the industry. The
industry is still sorting through challenges and conflicts with FMCSA's
Compliance, Safety, Accountability (CSA) initiative, now in its third year.
Since its nationwide rollout in December 2010, industry groups have identified
a number of challenges within CSA. Two of the most significant areas of concern
surrounding CSA are the lack of crash accountability in CSA scoring and the
inability of CSA scores to accurately predict carrier safety performance. ATRI
released research in 2012 found that only three out of five publicly available
Behavior Analysis Safety Improvement Category (BASIC) scores were positively
correlated with crash rates. The impacts on motor carriers whose safety
performance is being evaluated based on BASIC scores with no relationship to
crash risk is a problem that must be addressed.
Combined, HOS and CSA are exacerbating an already significant driver
shortage. Add to that the increased freight demand resulting from the economic
rebound over the past few years and it's no surprise that finding qualified
drivers is once again near the top of the list of industry concerns. And though
it no longer places first among industry stakeholders, the state of the
nation's economy continues to be a top issue in the annual survey, placing 4th
in the 2013 list of critical industry issues.
Rounding out the top five issues in the annual survey is the Electronic
Logging Device (ELD) mandate. In 2011, FMCSA was forced to vacate a proposed
ELD rule due to a court decision regarding concerns over driver harassment.
FMCSA is expected to release a supplemental notice of proposed rulemaking
(SNPRM) in the next several months that will address ELD performance standards,
requirements for the use of ELDs, requirements related to HOS supporting
documents, and assurances that ELD mandates will not result in driver
harassment. Depending on the nature of the proposed rule, this issue may see a
higher level of concern in the future years' surveys.
Issues 6-10 in the 2013 annual survey are all critical and impact motor
carriers on a day-to-day basis and the inter-connectivity of the issues is
unmistakable. With the recent changes to the HOS rules, Truck Parking (#6 on
the survey) has become even more of a challenge for drivers as they look for
safe places to park for their mandated 30-minute rest break. Solutions for
improving Driver Retention (#7) become increasingly difficult in today's
environment with the impacts on drivers from CSA and the HOS changes.
Issues #8 and #9 (Fuel Prices and Infrastructure/Congestion,
respectively) impact your bottom line and without meaningful and significant
infrastructure investment, congestion will worsen and fuel costs as a
percentage of the industry's overall operating expenses will continue to climb.
In ATRI's 2013 update to the Operational Costs of Trucking research, fuel and
oil was the single highest motor carrier cost center, even more costly than
driver wages and benefits combined.
The #10 issue in the 2013 annual survey, Driver Health and Wellness,
must become a priority for motor carriers and drivers alike if the industry is
going to keep the professional men and women now employed in the industry and
attract new entrants. In addition to obvious lifestyle benefits, an improvement
in driver health may also have positive implications for industry safety as
research has found a positive correlation between driver health and driver
safety.
The Top Industry Issues Survey provides an important indicator of where
the industry's attention is focused and which issues may rise to prominence in
the near future. It's an important tool for providing direction to industry
groups at the state and national levels in terms of the issues and strategies
that motor carriers believe will have the most impact on the industry for years
to come. Armed with this information, state trucking associations and the
American Trucking Associations are better equipped to address the issues more
broadly and proactively.
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