Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/221538
Business The new hours of service rule has hurt pay, productivity and lifestyle, say surveys from the Owner-Operator Independent Drivers Association and the American Transportation Research Institute. Miles and pay have decreased, while stress and fatigue have increased, the groups say. In OOIDA's survey, 65 percent of 4,000 respondents said the rule caused them to receive less income, while 46 percent reported feeling more fatigued. In the study from ATRI, an arm of the American Trucking Associations, more than two-thirds of the 2,370 driver respondents said the rule change had decreased their pay. Todd Spencer, OOIDA executive vice president, said the Federal Motor Carrier Safety Administration "micromanages" drivers. "Instead of providing the flexibility to drive when rested and stop when tired, the new rule has put drivers in the position of driving more hours than ever and in the worst traffic conditions, and spending less time at home," Spencer said. "How is that safe?" More than four in five driver respondents in the ATRI study reported a decrease in quality of life due to the rule, and two-thirds said they are more fatigued. The respondents report the lost pay is due to changes in schedule to meet the restart provisions, longer restart times, using a rolling schedule, losing loads due to a lack of flexibility and losing productivity due to the 30-minute break mandate. The study also said that more than 80 percent of motor carriers surveyed had seen productivity losses since the July 1 effective date of the new hours rule. — James Jaillet Hours rule: Less pay, more fatigue Driver pay impact Uncertain 7% Decreased 15% or more 16% 1% Increased 25% Unchanged Decreased 10-15% 16% 16% Decreased 1-5% Decreased 5-10% 19% American Transportation Research Institute Gauges Year-end weakness Freight volume and revenues dropped in October, due in part to the federal government's 16-day shutdown, according to the Cass Freight Index Report. The 3.5 percent decline in freight volume and the 2.6 drop in expenditures also reflect "the weakening state of the overall economy," Cass says. "Underwhelming retail sales have resulted in lower expectations for the holiday season." 2.6 Cass Freight Index 2.4 2.2 — Expenditures — 2.0 1.8 1.6 1.4 — Shipments — 1.2 1.0 0.8 JAN 2010 2011 2012 2013 OCT 8% LONG-TERM GROWTH: American Trucking Associations' advanced seasonally adjusted tonnage index rose 8 percent in October, compared to a year ago — the largest year-over-year rise since December 2011. "The heavy freight sectors, like tank truck, have been helping tonnage this year," said ATA Chief Economist Bob Costello. "But in the third quarter, generic dry van truckload freight saw the best quarterly gains since 2010." 18 | Overdrive | December 2013 Biz_1213.indd 18 11/26/13 9:20 PM