FMCSA Hours of Service Regulations

Author: Gregory Lorenzo   (Email the Author)
Published: 1/10/2006

Changes to the FMCSA's Hours of Service Regulations threaten to negatively impact the productivity of the transportation industry. Here are guidelines that all shipping partners can use to maximize efficiency while remaining within the regulations.

NEW 2005 FMCSA HOURS-OF-SERVICE REGULATIONS IMPACT

BACKGROUND
New hours of service (HOS) regulations effective 10/1/2005 restrict the use of the split sleeper berth provision while logging hours of service.  One segment of the split ten hour rest time must now be eight hours.  This change ensures a driver will have at least one unbroken rest period of eight or more hours in each rest/work period and eliminates a driver's ability to suspend their duty clock for any dock delay less than eight hours.

IMPACT
The analysis and initial experience indicates the likely result of this change is a 1.0 - 8.6% reduction in overall driver productivity.  Without any changes in customer behavior, we can expect up to a 2.0 percentage point drop in on-time service.  Why?  Drivers no longer have the capability to suspend their duty clock by resting during any dock delay less than eight hours.  Thus, our ability to re-power loads for service recovery is dramatically reduced.  Since the amount of time that a driver has to work primarily defines our daily capacity, an hour lost due to delay is an hour of lost productive capacity.  In a normal case, 90% of our capacity is realized by 5:00PM each day.  Delays that occur between 7:00AM and 5:00PM are especially harmful to our freight-moving capacity as they occur while a large majority of drivers' duty clocks are running and cannot be stopped.  The ability of a driver to extend his or her work day has now been removed.

RESPONSE
Please consider operational changes that may be necessary to improve shipping/receiving process efficiencies as a result of these regulatory changes.  All trading partners must be aware of these impacts, and adjust their operations and procedures accordingly.  Lorenzo International is currently reviewing internal delay event management processes to better address delays as they occur and to more consistently identify and address chronic delay locations.  With the greater cost now associated with extended and unexpected dock delays, Lorenzo International accessorial charges for power detention will be updated accordingly.  The charges follow an accelerating schedule to reflect the true operating cost impact and underscore the critical nature of drivers' time. 

Effective January 1, 2006, Lorenzo International will implement the following changes to our standard detention accessorial program:
 

Customer Delay Duration Detention Charge
0 - 1 hour	Free (no charge)
1 - 2 hours	$75/hour ($20.00 per 15-minute increment or fraction thereof)
2 - 3 hours	$100/hour ($30.00 per 15-minute increment or fraction thereof)
3 - 4 hours	$150/hour ($45.00 per 15-minute increment or fraction thereof)
> 4 hours	$500 flat charge per day

Ideas and suggestions for shippers and receivers to work with carriers to minimize dock delays include:

• Communicating with trading partners to ensure all are aware of the cost, service and capacity impacts of the new rules unless behaviors are changed
• Developing streamlined loading and unloading practices, targeting one or fewer hours of driver delay for all dock events
• Establishing supporting incentive systems to encourage timely dock activity
• Identifying and rectifying chronic delay issues
• Scrutinizing live dock events to see whether a drop-and-hook program is warranted
• Allowing driver parking on-site to accommodate drivers who can make it to the shipping or unloading site but will not have the hours to depart after the dock event ends
• Tendering shipment information as much in advance as possible to allow carriers to match load times with available driver hours

SUMMARY
The new rule changes will ensure extended (eight hour or more) rest breaks occur in every driver's day.  Without changes by all supply chain partners, this change will result in less capacity, lower service levels, and higher costs for all.  In addition, driver earnings will be reduced, thereby making the driving job less attractive and exacerbating an already short driver supply.  By working together to eliminate delays greater than one hour, the negative supply chain impacts can be minimized, if not eliminated. 

Lorenzo International values your business and we look forward to working with you to minimize the negative impact that these changes may have on our respective business operations.

View other articles