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.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."