New HOS Rule May Shorten Driving Time, Extend Rest Period, TCA Chairman Says

This story appears in the Sept. 20 print edition of Transport Topics.

BIRMINGHAM, Ala. — The new federal hours-of-service rule due to be unveiled shortly is likely to trim one hour of maximum driving time, and extend the rest period necessary to initiate a new workweek, according to the chairman of the Truckload Carriers Association.

John Kaburick told the audience at the McLeod Software User’s Conference here that the new rule — the result of a lawsuit filed by opponents of the current rule — is expected to cut to 10 the number of hours a driver can be behind the wheel, and extend to 40 hours, from the current 34, the time needed to restart the clock.

But, he added, “Most likely there’ll be another lawsuit” after the revision is released, so “we’ll continue on” with the current rule for some time. While the current rule has been overturned by federal courts on two occasions, it is still in place pending resolution on the revision.

Meanwhile, Tom McLeod, CEO of McLeod Software, told the user conference attendees that the software company, which is celebrating its 25th anniversary, is “on track for our best year ever.”

And economist Noel Perry, principal of Transportation Fundamentals LLC, reassured attendees that the U.S. economic recovery is going well and there was little chance of a double-dip recession.

Perry said fleets are generally having a solid year, even as freight levels softened around midyear. He predicted that fleets would see freight rate increases of around 10% this year and 12% next year, and said 2012 could be an even stronger year.

He said a driver shortage already is occurring and that trucks were in short supply in some markets, even though the economic recovery has been moderate thus far.

McLeod said his company’s business has been strong in part because more fleets are expanding their roles with their customers and need the software to support these new functions.

“Today, every trucking company is in freight brokerage,” McLeod said, because of the changing nature of the business.

He said many fleets are offering to act as 3PLs, in part to protect themselves by strengthening their relationships with their customers.

And by helping their customers handle all their freight, the fleets protect their own portion of the business, McLeod said.

During the conference, McLeod and some of its associated vendors released new products.

Meanwhile, TCA’s Kaburick, who runs Earl Henderson Trucking, Salem, Ill., told attendees the association is “looking at adding private fleets” as members and that the group would be offering up its own plan for bigger trucks, proposing an increase in the current 80,000-pound limit to 87,000 or 88,000 pounds, using existing equipment.

He said that TCA continues to oppose the move to allow 97,000-pound loads on 6-axle equipment because many of his members don’t want to have to invest in the new equipment.

Kaburick also predicted that the federal government would soon mandate the use of electronic logs for all carriers, which he said would benefit fleets in the long run, after a period of reduced driver productivity as companies adjust.