For some truck drivers, every work shift has become a race against the clock. New federal regs decree that their shifts end 14 hours after they begin no exceptions. And private fleets could be particularly hard hit.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
The minute a truck driver slides behind the wheel, the race against the clock is on. As the day progresses, each tick of the dashboard clock becomes a relentless reminder that the shift ends exactly 14 hours after it began, no timeouts allowed. It hasn't always been that way. Prior to Jan. 4, when the new hours-of-service (HOS) regulations kicked in, drivers had the flexibility of using mid-day breaks to extend the on-duty period if events weren't unfolding according to schedule. But those days are over.
Nobody's exempt from the new rule. Giant truckload carriers, independent owner-operators, regional LTL haulers, for hire carriers and private fleets … all must comply with the new hours-of-service regulations. Aimed at preventing accidents caused by driver fatigue, the rule represents the first major revision to the hours-ofservice regulations in six decades. Under the new system, drivers are limited to a maximum of 11 hours of driving in a 14- hour shift (in contrast to the former 10 hours of driving within a 15-hour shift). A shift cannot begin unless the driver has taken at least 10 hours off, and each shift must be followed by at least another 10 hours off. Drivers may not drive after being on duty for 60 hours in a seven-consecutive- day period or 70 hours in an eight-consecutive- day period. The on-duty cycle may be restarted once a driver has taken at least 34 consecutive hours off duty.
The regs may apply to all, but their effects on different types of operations vary widely. Hardest hit of all may be some of America's private fleets, the trucking operations that exist primarily to haul freight for their parent companies. Today, private fleet vehicles are a common sight on the nation's highways as they go about their day delivering everything from snack foods to kitchen cabinets to customers and hauling raw materials like flour and vegetable oil to company plants. Certainly they're logging plenty of road time: Private fleets account for approximately 53 percent of all the U.S. miles traveled by medium- and heavy-duty trucks, according to the National Private Truck Council (NPTC).
But they're also logging plenty of time off the road, which is why they sometimes find themselves running up against the new HOS limits. Private fleet drivers typically do much more than just haul goods from point A to point B; many of them carry out a number of non-driving duties as well— loading and unloading, setting up customer displays or even performing installation work. Now, under the new HOS rule, those time-consuming tasks are suddenly on the clock.
That seemingly minor wrinkle has major implications for, say, route drivers who make multiple delivery stops. "My gut tells me that local distribution people have been hardest hit," says Richard P. Schweitzer, general counsel for the NPTC. "They don't get the benefit of the 11-hour rule, but they're hit by the 14-hour daily limitation. That's mitigated by the 34-hour reset. A number of companies have said they had to hire drivers and put on additional equipment. Some large companies have said they have to hire hundreds of additional drivers."
Yet not all fleets are feeling the pain. Garry Petty, president and CEO of the NPTC, emphasizes that the effects of the HOS rule on private fleets vary widely, depending on the nature of the operation. Some fleets, he says, have noticed only a nominal impact. Others have reported that the time limits are putting pressure on fleet capacity, forcing them to reconfigure some of their routes or add equipment. Yet others have found the regs so onerous that they're actually considering outsourcing some of the non-driving functions, he adds.
And a few lucky fleets will find the new regs work to their advantage. Some linehaul operations, for example, are finding the rule can actually improve driver productivity because it allows an additional hour of driving compared to the previous rule (which allowed only 10 hours of driving in a 15-hour shift). "For those over-the-road operations, the 11 hours has been a benefit," says Schweitzer. "For everyone, the 34- hour reset has been a tremendous benefit. It allows you to start a new week after a couple of days off."
almost touched by an angel
The debate over the hours-of-service rule took an ugly turn last October, when postal authorities in Greenville, S.C., discovered a letter addressed to the Department of Transportation that contained a metal vial of the deadly poison ricin. Only days later, postal authorities intercepted a similar letter containing the poison addressed to the White House. That letter threatened to turn Washington, D.C., "into a ghost town" if the new rule went into effect. Neither letter reached its addressee.
The first letter's writer, who claimed to be an owner of a tanker fleet, demanded that the rest time in the hours-of-service rule be reduced to eight hours from 10. The writer claimed to have access to large amounts of castor pulp—the source of ricin—and threatened to start dumping if the rule was not changed. The letter was signed "Fallen Angel." (The Center for Disease Control explains that ricin is part of the waste mash produced when castor beans are processed to make castor oil. It can cause death within 36 to 72 hours of exposure.)
The Postal Service, the FBI and the DOT's inspector general have offered a $100,000 reward for information leading to the arrest and conviction of whoever sent the letter.
Dock around the clock
Some operations may have benefited from the new regs. But many more are chafing under the restrictions, which are forcing them to find ways to reduce the amount of non-driving time logged by drivers. "The biggest effect on both shippers and carriers is that it makes every hour important," says Schweitzer. "You can't waste time sitting around waiting to load or unload, and you can't take time to rest unless it's in a sleeper berth."
For a lot of fleet operators, that raises the delicate question of how to coax their customers to shake their old habits and find ways to get the drivers in and out quickly, regardless of when they show up. "That's one of the issues I hear about a lot," Petty says. "Distribution centers—the customers where many of these trucks are going—have to change and be more accommodating in terms of access.We are in a 24-7 market. We can no longer afford bankers' hours for opening and closing DCs."
But not all fleets are waiting around for their customers to fall into line; they're taking things into their own hands. Schweitzer reports that many companies are already reviewing and altering their loading, unloading and dispatch procedures. "You want to make sure you get your driver out and home again, or at least to a safe place," he says.
Schweitzer also notes that he's seen renewed interest in drop and hook operations, in which the trucker picks up one trailer while leaving another behind at the shipping or receiving dock for the customer to load or unload at its convenience. Trouble is, that requires a lot of equipment. While added demand may be good news for trailer manufacturers or lessors—though one trailer manufacturer says it hasn't shown up in sales numbers yet—it translates into added costs for fleet operations already strapped for cash.
Mission accomplished?
Still, the question remains, have the new regs accomplished their original mission of improving safety? Ironically, though the HOS restrictions were intended to minimize fatigue-related accidents, the push to stop work 14 hours after a shift begins could have the opposite effect. Schweitzer reports that a number of NPTC members who attended the group's safety committee meeting in February voiced concerns that the rule was forcing drivers to rush during the day. "It used to be that if you were up against the rule on the way home, you could rest for an hour or two and then come in after 15 hours." Now, drivers must finish their shift 14 hours after starting and cannot count rest periods as time off. "They see that as a real safety issue," Schweitzer says.
And highway safety isn't the only concern. Some council members whose route drivers are responsible for tasks like setting up displays at customer sites worry that the drivers may be rushing through the job, resulting in injuries and an increase in workers' compensation claims, he adds.
In the end, issues like these will likely be resolved back at fleet headquarters, not in Washington, D.C. With little prospect of legislative relief, managers are reconfiguring routes, reassigning drivers and taking a hard look at their operations. "Maybe it requires going back and correcting dispatch, but that's costly," Schweitzer says.
In the meantime, the NPTC has gone into overdrive with efforts to help its members adjust to the rule, issuing almost weekly notices explaining the rule's particulars and discussing how they'll be enforced. In addition, the council has organized a number of open forums and teleconferences. The regs and their effects on costs and operations will also be a major topic of discussion at the NPTC annual meeting in Atlanta next month.
What might have been
Despite concerns like these, most fleet managers see the final rule as a big improvement over what might have been. Petty says the final regs, which were announced a year ago, revised in the fall and implemented in January, are infinitely preferable to draft regs floated in 2000. Those draft regs, for instance, regulated drivers' hours in five different categories. "That was complete insanity," Petty says.
That doesn't mean that everyone is satisfied. "I'm not saying everyone is happy with the outcome," he says. "That's particularly true for companies that have built quality-of-life features into the work schedule—a shower, a nap. Those companies feel that those perks not only enhanced the drivers' quality of life, but also served to promote safety. Those companies are not particularly happy. The rule is compromising their ability to do those sorts of things."
managers' ed
Anyone who watches late night TV knows that aspiring truck drivers can enroll in driver training school. But where do managers go for training? One option is the Internet. Last fall, the National Private Truck Council (NPTC) launched an online training program for private fleet managers. Courses offered through the Fleet Learning Center, as it's called, provide the background needed to attain the trade group's Certified Transportation Professional designation.
The courses, which allow enrollees to work at their own pace, were developed by NPTC Educational and Training Consultant Tom Moore and an advisory board that included industry experts and professional practitioners, NPTC says. They are divided into five modules: fleet finances; safety, security and compliance; equipment and maintenance; operations; and human resources.
The Fleet Learning Center was funded for NPTC by International Truck & Engine Co. and Idealease of North America.
Registration for the courses is $150 for NPTC members and $250 for non-members. To learn more, visit www.fleetlearningcenter.org.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.