Detention costs millions of hours, billions of dollars

Insiders: The high costs and strict regulations in California are causing some trucking companies to rethink operating in the once "Golden State." Meanwhile, driver detention times across the U.S. led to $11.5 billion in lost productivity last year, adding to the industry’s growing challenges. -Bianca Prieto, Editor

Today's Lineup
🔷 How many trucks are fleets ordering?
🔷 SCOTUS hears case of a driver who failed a drug test.
🔷 FMCSA in limbo until November.
🔷 Battling astronomical insurance costs.
🔷 Driver sentiment: There's an AI for that.
-written by Shefali Kapadia

Trucking companies are shedding jobs  

Even though driver pay has been rising over the last two years, trucking companies aren’t adding a ton of jobs.

More than 1,000 trucking jobs were axed from the economy last month, according to the Bureau of Labor Statistics’ latest jobs report. August was the fifth month in a row that the trucking industry shed jobs. But in the five months before that, the sector added jobs. 

One analyst speculates that a recovery from the freight recession hasn’t arrived quickly enough, so fleets are proceeding cautiously.

Why this matters: With five months of job losses, it’s clear that trucking companies are not feeling confident about the near future. But if shipper demand does pick up, carriers may find themselves in quick need of drivers. 

Get more details from Land Line.

• ORDER UP: Class 8 truck orders reach 16,400
• HIGH RISK: Driver who failed CBD drug test goes to court 
• SHORT TERM: FHWA head departs after less than 2 years
• FATAL ACCIDENT: Man struck directing semi-trailer to loading dock

FMCSA trucking safety rules in limbo until after election 

The Federal Motor Carrier Safety Administration has proposed a handful of safety rating changes. Should driver behavior be incorporated into ratings? Should the three-tiered system be scrapped?

We won’t the answers for a while, though, because big action is unlikely until after the November election. Congress and a new administration could review or even throw out new regulations, so rulemaking is more or less on hold.

Why this matters: As the agency waits to see how the election pans out, the trucking industry is also in limbo on any proposals or potential regulatory changes. (Trucking Info)

STATE OPERATIONS

"California used to be called the Golden State … for trucking as well. Right now, it appears that it has moved to a Silver State."- Ivar Marroquin, owner-operator.

In a podcast on Overdrive, Ivar and his brother, both owner-operators who’ve long worked with Landstar, discuss the challenges of doing business in California, with regulations and a high cost of living. Listen here.

Detention costs millions of hours, billions of dollars

A new study from The American Transportation Research Institute reveals some staggering numbers. In for-hire trucking, the time lost due to truck driver detention was more than 135 million hours last year. That resulted in $11.5 billion in lost productivity. 

Why this matters: As the saying goes, if the wheels aren’t turning, fleets aren’t earning. Detention can be a drain on finances and productivity, and it can even result in delayed loads, especially if it eats into a driver’s HOS.  (Truckers News)

Going to battle against rising insurance costs

If you’re gawking wide-eyed at your insurance premiums, you’re not alone. Premiums have risen 10% over the last eight years, with no sign of reversing. Accidents, nuclear verdicts and economic factors have all contributed to soaring insurance costs. 

Why this matters: Rising premiums are especially devastating to small and medium fleets who face a high cost of doing business. How can you to combat these costs? Focus on driver screenings, give more detailed data to insurance underwriters, and employ telematics. (Risk and Insurance)

ChatGPT, how are my drivers feeling?

A growing number of fleets are using AI to gauge the sentiment of their workforce. AI systems gather employee feedback, then fleet managers analyze the results to act on the feedback, making changes for the better.

Why this matters: Trucking has adopted AI and tech in routing and safety systems. Employee engagement could be the next frontier, as fleets focus on retention and keeping drivers satisfied.  (Transport Topics)

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