A long-awaited rule governing truck drivers' hours of service was issued by the federal Department of Transportation in late April. Though truckers generally expressed relief at what they saw, safety groups charged that the government had placed truckers' economic interests ahead of public safety.
The new rule allows drivers to operate vehicles for 11 hours within a 14-hour period after at least 10 consecutive hours off duty. That's a relatively minor variation from the current rule, which allows 10 hours of driving within a 15-hour on-duty period after eight hours of off-duty time. The new rule - like the old - prohibits driving after 60 hours on duty in a seven-consecutive-day period or 70 hours in an eight-consecutive-day period. The on-duty cycle can begin again after a driver takes at least 34 consecutive hours off duty.
Short-haul truck drivers like route drivers—drivers who routinely return to their place of dispatch at the end of the work day and then are released from duty—are allowed an on-duty period of 16 hours once during any seven-consecutive-day period. The DOT says the 16-hour excepti on takes into consideration legitimate business needs without jeopardizing safety. According to the Federal Motor Carrier Safety Administration, which drafted the rule, without those extra hours, the industry would be required to hire at least 48,000 new drivers.
Though the new rule's provisions may not look terribly different from the old ones, they contain some new restrictions. An analysis by the National Industrial Transportation League (NITL) warns that mid-day breaks will no longer extend an on-duty period. "Thus, a driver who begins his shift at 12 noon, for example, must go off-duty at 2 a.m. (and cannot return to duty for at least 10 hours) even if he took a three-hour break in the afternoon. Under the old rules, this driver would have been able to stay on duty for 15+3 hours - until 6 a.m.," the league told members in its weekly bulletin.
The new rule, which takes effect next Jan. 4, governs interstate truck drivers operating vehicles with a gross vehicle weight rating of 10,001 pounds or more, and operating vehicles transporting hazardous materials in quantities requiring vehicle placards. The FMCSA estimates the new rule will save up to 75 lives and prevent as many as 1,326 fatiguerelated crashes annually. There were an estimated 4,902 truck-related fatalities in 2002, the agency reports.
The FMCA says that delaying enforcement of the rule until January gives the agency and states time to modify computer systems to reflect the regulatory changes, train more than 8,000 state and federal personnel, and educa te the industry. In addition, the agency adds, the implementation plan gives carriers and drivers time to become familiar with the new regulation and make any procedural changes necessary for compliance.
To the trucking industry's relief, provisions requiring drivers to keep a daily log remain unchanged. A controversial draft of the rule three years ago would have required carriers to install electronic on boa rd recorders in their vehicles, a proposal criticized for being intrusive and expensive. But that doesn't mean the idea's been dropped. The FMCSA says it will expand its research on the recorders and similar technologies and will consider offering carriers incentives to install recorders, which the agency says would ensure compliance with record-keeping and hours-of-service rules.
Some like it not The proposed rule was endorsed by the American Trucking Associations, the major trade organization representing the trucking industry. "This is a package that our members can work with," said Bill Graves, ATA president and CEO, in a prepared statement. "We have worked hard all along for a rule that is a good mixture of common sense and sound science. It will allow us to meet the real world operational needs of the trucking industry and most importantly, do so safely." Adds Gerald Detter, president and CEO of Con-Way Transportation Services, "We meant it when we asked for real hours-of-service reform to improve the safety of our workplace—the nation's highways. We're now on target."
The ATA says it's pleased to see that the new rule incorporates provisions of an ATA proposal to increase the amount of rest time for professiona l truck drivers. It says the new rule promotes the body 's natural 24-hour rhythm, in contrast to the current rule, which is based on an 18-hour day.
But not everyone is happy with the announcement. The new rule was condemned by a group called the Truck Safety Coalition, which includes Citizens for Reliable and Safe Highways (CRASH) and Parents Against Tired Truckers, or P.A.T.T.
In its statement, CRASH contends that the new rule will not reduce fatigue. It argues that on-board recording devices are necessary to ensure enforcement of any rule. "In 2000, the FMCSA admitted that commercial driver paper logbooks were widely falsified and that a high percentage of drivers routinely violated the maximum number of driving hours permitted. Drivers themselves have admitted this fact in independent surveys, such as the survey published by the Insurance Institute for Highway Safety," the CRASH statement reads. CRASH argues that the rule favors trucking economic interests over improved safety, which it says conflicts with the 1999 law requiring new hours-of-service rules.
CRASH did applaud the 11-hour limit as an improvement over a 12-hour on-duty cycle proposed in 2000.
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.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."