New Changes Threaten Trucking
In the coming weeks there are many new regulations coming that could hit the trucking industry pretty hard. While one regulation may not be enough to make a big deal, combined they could potentially make it difficult to find trucks.
- ELD Switchover
We are one week away from the required switchover from AOBRA to ELD. While this isn’t news to any truckers as they have known about the coming regulations for the past year, thousands have not made the switch.
Last year the Federal Motor Carrier Safety Administration or FMCSA announced the electronic logging device (ELD) manage to improve safety in the industry. This is a device that is able to record the driving time automatically on a vehicle’s engine. This not only provides a greater level of safety for drivers and other drivers on the road, but it also simplifies the process of logging time and is more accurate than the traditional paper log method.
This new mandate, according to the FMCSA, is to provide more compliance with hours of service regulations. The mandate helps regulate the hours a driver is on the road to prevent tiredness that could cause potential unsafe situations for other drivers. Not only does the ELD record their driving hours, it is also able to monitor other things such as location, miles, and movement.
- Spike in diesel prices?
IMO 2020 could cause us to see a rise a 25 cents per gallon rise in diesel prices. January 1 ocean vessels are required to use ultra-low sulfur fuels. As fuel being the biggest expense for carriers, this rise could put some carriers out of business. A report by Jason Miller and FreightWaves, “The biggest surprise to most outside of trucking industry professionals would be that failures are not primarily caused by spot and contract rates falling steeply in a recession. Instead, failures are primarily due to huge spikes in diesel prices that smaller carriers cannot pass on.”
- January 6 – Drug and Alcohol Clearinghouse
All trucking companies will soon be weeding out drivers. January 6th companies are required to use FMCSA’s Drug and Alcohol Clearinghouse. This is a database that will allow employers to get information on CDL drug and alcohol violations. Right now, drivers who have been fired from drug use and go to another state and obtain a job. This database will help employers identify if their drivers has prior violations.
Currently the FMCSA uses urine testing to detect drug use. However, it can only determine if there has been any drug use in the past few days. If they permit the use of hair follicle testing, they can detect drug use for up to 2-3 months.
- New Overtime Laws
2020 will also bring new overtime laws into effect. This will make 1.3 million Americans eligible for overtime pay. For the most part this will affect carriers and companies with back-office staff.