The Weekly Freight Report for May 20, 2020
The Top 7 Stories in Freight
Volume debates… driver shortages… HOS changes and extensions… and more. Catch up on the top stories with The Weekly Freight Report:
1. The FMCSA Updates HOS Rules
The FMCSA has issued its final rule on HOS. There are 4 key changes under the new rule making. New HOS modifications include sleeper-berth exceptions, adverse driving conditions, short-haul exceptions and break periods. While it’s a step forward for drivers, carriers and shippers, not everyone is on board with the updates… turns out this might not be the final answer. Get the full details here.
2. Are Truckload Volumes Here to Stay?
It’s the question everyone in freight is asking… what will happen to volumes in the upcoming months? Volumes are up and experts feel optimistic about the future. However, concerns lie in rising unemployment rates and slashed capital expenditure budgets. The truth of the matter? No one has a crystal ball to predict the future. But FreightWaves provides great insight on where we are heading… get the full details here.
3. FMCSA Extends Emergency Declaration till June 14th
That’s right… the FMCSA has once again extended the emergency declaration exempting from HOS regulations. And this time it’s until June 14th. But… the rule only applies to drivers hauling relief aid. What kind of items are considered “relief?” Find out here.
4. Larger Carriers Are Growing Faster Than Small
Technology… crisis response mechanisms… and lower rates. These are 3 reasons new FourKits data indicates larger carriers are growing faster than their smaller counterparts. Until smaller carriers can find economy of scale and upgrade their tech… it’s likely to stay this way. Get the full details here.
5. Supply of Eligible Drivers is Falling Dramatically
As driving schools have closed and state driver licensing agencies have cut back hours… it’s near impossible for new drivers to enter the workforce. And carriers looking to hire are struggling to find experienced drivers. With no new drivers coming in and many experienced drivers choosing to stay home… there just might be a capacity crunch on the horizon. Get the details.
6. Teamsters Argue Safety of HOS Updates
While many tucking industry groups are applauding the HOS rule changes made by the FMCSA… Teamsters aren’t as thrilled. They argue that increased wrecks and deaths are due to drivers racing the clock… and these new rules won’t change that. Who’s on the right side of this argument? Read up and decide for yourself.
7. Cross-Border Trade is Critical for Economic Growth
The future of freight is impossible to predict… but analysts say cross-border freight will play a critical role in economic growth. And as more businesses move production to Mexico, increased regional commerce will lead the way. But growth won’t happen overnight. And a Mexican recession could be bad news for many U.S. states. Get the details.
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