HOS: Where It’s At and How It’ll Impact Market Capacity

The Department of Transportation (DOT) misses yet another deadline on Hours of Service. How can the transportation industry prepare for the uncertainty of its eventual outcome and its impact on supply chains?

The DOT missed their October 28 deadline for the announcement of the new Hours of Service (HOS) rules. There is no date as to when any new HOS rules will be announced. The saga of DOT inaction and uncertainty for carriers and shippers continues.

The question waiting to be answered is: “How many hours will drivers be able to drive?” This question as to what the new rules will be has gone unanswered for nearly a decade.

After numerous years of litigation, in October 2009 the DOT agreed to revisit the HOS issue as part of a deal to get Anne Ferro confirmed as Administrator for the Federal Motor Carrier Safety Administration (FMCSA). Legislators let it be known that they expected the DOT to issue new HOS rules that addressed their concerns. After the DOT decided to reopen the HOS issue in 2009, they held hearings prior to issuing a preliminary proposal and two years later, shippers and carriers are still waiting.

Many federal legislators have formally requested the White House and the DOT to retain the current HOS rules. On the opposite side, union officials and safety groups funded by the railroads, or parties sympathetic to the railroads, have been pressing for the HOS rule change in allowable drive time from 11 to 10 hours and a change in the restart provision. If the DOT retains the current HOS, they risk alienating important constituents with the elections fast approaching -likely the reason for no action at this time.

How can the proposed changes in the HOS rules impact your business? If the allowable drive time is reduced from 11 to 10 hours and the restart time is extended, capacity will be significantly affected. Simply stated, a driver will travel less miles, and thus carry fewer loads, over the same period of time. This compounds the available capacity given that driver shortages are already a key factor. Shippers are likely to see rates go up by as much as 9% to 11%

For more details on HOS regulations, visit the FMCSA website at http://www.fmcsa.dot.gov/rules-regulations/topics/hos/index.htm . Wikipedia has a great overview of the history of HOS regulations, driver fatique data, transportation safety issues and enforcement at http://en.wikipedia.org/wiki/Hours_of_Service.