CSA 2010 Deadline Looms, Impact Debated
Posted on Mon, Oct 25, 2010 @ 10:40 AM
As the next deadline for CSA (public release of data November 30th) rapidly approaches, the debate continues and the full impact is beginning to be quantified. In a recent article in the Commercial Carrier Journal, Jeff Crissey cites one carriers’ estimate of a 5% loss of capacity or productivity due to the new realities of tightened compliance thresholds.
As mentioned here before, CSA coupled with the new Hours of Service (HOS) logging regulations expected to be released by the White House Office of Management and Budget (OMB) and published in the Federal Register by the Federal Motor Carrier Safety Administration (FMCSA) in early November, portend severe capacity and productivity concerns.
The expected loss of the eleventh hour of driving time carriers currently enjoy will result in an additional 9% loss of daily capacity. The expected impact of the potential loss of the 34-hour reset rule (or possible increase to, say, 40-hours) will further erode driver and truck capacity. It is unclear what other changes may be included in the proposed HOS regulations.
Throw in a deepening national driver shortage and you have the perfect storm this writer has been forecasting.
Shippers must step up to the plate and fine tune their operations or face the reality of not being able to find trucks at any price. A shipper recently talked about becoming more “driver friendly” by putting in amenities for drivers waiting four (4) hours to get loaded. I told them to fix the 4-hour loading situation and forget the amenities. As a business reality, carriers must align themselves with shippers who will get their trucks loaded or unloaded in reasonable timeframes.
Additionally, carriers must communicate the impact these changes are likely to have on their operations to shippers and work together to find ways shippers can alter their operations to mitigate or minimize the impact. Decreased productivity or capacity will translate into higher rates for the same services unless changes are made.
These changes mean new challenges for the logistics industry and represent the new reality of logistics in the 21st century. These changes will require real cooperation between and amongst all parties in the supply chain. More than just a trucking consortium these challenges will require true collaboration.
Only with such an approach will shippers and truckers be able to survive the wave of regulatory changes we face. Only with such cooperation will shippers be able to forestall some of the rate increases these changes will inevitably cause. Only with such an approach will shippers be assured of a reliable supply of trucks to move their freight.
Written by Kevin Mullen: Director- Safety, ADS Logistics