Skip to content
Search AI Powered

Latest Stories

newsworthy

Industry groups sue to block implementation of truck driver hours-of-service rules

Coalition argues that changes in driver work regulations will increase costs without improving safety.

A coalition of 15 industry groups filed suit in federal appeals court in Washington, D.C., on Tuesday to block the Obama Administration's attempt to change regulations governing commercial truck driver operations. The group included the U.S. Chamber of Commerce, NASSTRAC, the Retail Industry Leaders Association, and the National Retail Federation.

"For industries and carriers charged with delivering fresh food, keeping assembly lines running, and making deliveries, this rule is concerning and will hurt the economy," said Rick Schweitzer, counsel for the coalition. "With the lack of evidence that it will improve safety, moving forward with this rule will only create more uncertainties in an already cumbersome regulatory environment."


The 15 industry groups, which represent most sectors of the U.S. economy, said the Hours of Service (HOS) Rules were crafted without considering the costs they would impose on the supply chain. Industry groups have long argued that major changes in driver work rules would disrupt supply chains that have been calibrated to work with the regulations now in effect.

They also maintain the trucking industry is operating as safely today as it has since records were being kept, and there is no need to impose additional regulations that will drive up costs without having an appreciable benefit on highway safety.

Tuesday's action comes one week after the American Trucking Associations (ATA) also took legal action to oppose the controversial measure.

BATTLING CONTROVERSIAL CHANGES
The Final HOS Rule, issued last December by the Federal Motor Carrier Safety Administration (FMCSA), is scheduled to take effect next July. However, the Rule was expected all along to face major legal challenges that could delay implementation well beyond next year and might result in the regulations' being changed or even scrapped.

Jonathan Gold, vice president, supply chain and customs policy for the National Retail Federation, said the group's intent is to have the December policy directive thrown out and to keep the rules currently in effect.

The Final Rule maintain an 11-hour limit on the amount of continuous time a driver can be behind the wheel. The FMCSA had toyed with the idea of reducing the limit on continuous driving hours to 10, a move that provoked an outcry from shippers and truckers who warned that the change would disrupt carefully crafted supply chains built around 11-hour continuous drive times.

The rule limits a driver's workweek to 70 hours within a seven-day period, down from 82 hours. In addition, drivers cannot drive after working eight hours until they take at least a 30-minute break.

But by far the rule's most controversial provision requires drivers working the maximum number of weekly hours to take at least two rest periods—between 1 a.m. and 5 a.m.—during a 34-hour "restart" period. Under this provision, drivers may restart the clock on their workweeks by taking at least 34 consecutive hours off-duty. The Final Rule allows drivers to use the restart provision only once during a seven-day period.

Industry groups say the language would increase wait times for drivers to return to work and would put more trucks on the road with passenger cars during morning rush hours, causing severe traffic congestion and putting lives unnecessarily at risk. The groups said there is no scientific evidence that the change in the so-called restart provision will improve highway safety.

The Latest

More Stories

youngster checking shipping details on smartphone

Survey: older generations are unaware of holiday shipping deadlines

As holiday shoppers blitz through the final weeks of the winter peak shopping season, a survey from the postal and shipping solutions provider Stamps.com shows that 40% of U.S. consumers are unaware of holiday shipping deadlines, leaving them at risk of running into last-minute scrambles, higher shipping costs, and packages arriving late.

The survey also found a generational difference in holiday shipping deadline awareness, with 53% of Baby Boomers unaware of these cut-off dates, compared to just 32% of Millennials. Millennials are also more likely to prioritize guaranteed delivery, with 68% citing it as a key factor when choosing a shipping option this holiday season.

Keep ReadingShow less

Featured

shopper returning purchase with smartphone

E-commerce retailers brace for surge in returns

As shoppers prepare to receive—and send back—a surge of peak season e-commerce orders this month, returns will continue to pose a significant cost for the retail industry, with total returns projected to reach $890 billion in 2024, according to a report released today by the National Retail Federation (NRF) and Happy Returns, a UPS company.

Measured over the entire year of 2024, retailers estimate that 16.9% of their annual sales will be returned. But that total figure includes a spike of returns during the holidays; a separate NRF study found that for the 2024 winter holidays, retailers expect their return rate to be 17% higher, on average, than their annual return rate.

Keep ReadingShow less
screenshot of agentic AI for logistics

HappyRobot lands $15.6 million backing for its agentic AI

San Francisco startup HappyRobot has gained $15.6 million in venture funding for its AI platform that automates the communication needs of freight brokerages and other logistics users such as third-party logistics providers and warehouses.

The “series A” round was led by Andreessen Horowitz (a16z), with participation from Y Combinator and strategic industry investors, including RyderVentures. It follows an earlier, previously undisclosed, pre-seed round raised 1.5 years ago, that was backed by Array Ventures and other angel investors.

Keep ReadingShow less
forklift carrying goods through a warehouse

RJW Logistics gains private equity backing

RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.

Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.

Keep ReadingShow less
iceberg drawing to illustrate supply chain threats

GEP: six factors could change calm to storm in 2025

The current year is ending on a calm note for the logistics sector, but 2025 is on pace to be an era of rapid transformation, due to six driving forces that will shape procurement and supply chains in coming months, according to a forecast from New Jersey-based supply chain software provider GEP.

"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."

Keep ReadingShow less