What impact will the Hours-of-Service (HOS) Proposed Rulemaking have on transportation costs?

April 5th, 2011

If drivers can’t drive as many hours, there will be a need for more trucks as well as more drivers.

In December of 2010 the Federal Motor Carrier Safety Administration or FMSCA a part of the U.S. Department of Transportation proposed changes to the hours of service for Commercial Motor Vehicle Drivers (CMV) with comments due by March 4th of 2011.

These rules are an example of a good thing and potentially a bad thing for companies that ship or receive overland freight as part of their business. In general when drivers are required to work less hours, more drivers will be required to transport products and more trucks will be required to support the increased driver population. So, more jobs and increased sales of CMV’s; is probably good for the economy. The off side of this conversation is an increase in shipping costs in an industry that has seen prices climb steadily over the last few years that result in reducing their customer’s profit margins.

All companies will need to keep abreast of these potential rule changes, because this author is sure that these expenses were not planned for in anyone’s budgets.

We look forward to and appreciate your comments.

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