What the suspension of the 34-hour restart means

What the suspension of the 34-hour restart means to capacity utilization

According to FTR reports, it now looks like opponents of the FMCSA’s restart regulations have succeeded in attaching a provision to the current Federal funding bill that will suspend the recently changed 34-hour restart regulations pending a study of its effects. At issue is the requirement to have nighttime sleeping periods during the mandated rest period. Those periods, FTR noted, mean that truckers are unable to resume their work cycle in the evening or at night, a major hindrance to many schedules. Given the need for a study, followed by several steps in the regulatory process, FTR has estimated that modified regulations would be in place no earlier than early-2017.

FTR reported that this change will improve industry productivity by 2% immediately, lasting for the two years it will take to write a modified regulation. FTR estimated that the modified regulation will lower productivity by 1.5%, if the sleep timing issues are solved. That is a 50 basis point improvement over the current regulation, according to FTR.

In the meantime, the 2015 productivity benefit will noticeably affect truckload capacity utilization. This, according to FTR, will join an already moderating trend to lower capacity utilization to near 96%. FTR reported that this is high by historical standards, but 300 basis points below the critical level of a year ago. This means that the industry will have an important reserve of surge capacity to handle seasonal peaks or other issues in 2015. FTR expects price increases to moderate as a result, especially for spot markets.

“It is important to note that this change does not reduce the impending wave of regulatory drag still scheduled for late 2016 and beyond,” said Noël Perry, FTR’s senior consultant and managing director. “Indeed it makes it worse, because the revised regs will hit just when a bunch of other regulatory changes appear as well. At that point, capacity will move above 100% and stay there for a year or more, unless the FMCSA doesn’t do what it says it will do, or if recession appears to blunt demand. Should recession occur—at FTR we think this is likely—that simply will push the crisis out a year or two. At that time, the problem will be worsened by a surge in recovery freight.”

You May Also Like

Intangles says InRoute Connect speeds up maintenance turnaround

Intangles says InRoute Connect detects issues before a diagnostic code is triggered, giving drivers more time to get to a service facility.

Intangles-InRoute-AI-maintenance-management

Intangles, an predictive maintenance platform for the trucking industry, announced InRoute Connect, a new aspect of its predictive maintenance platform which allows fleet managers to act on predictive alert warnings while trucks are on the road.

According to Intangles, after a user receives a predictive alert warning that there’s an issue with a vehicle, Intagles says the fleet manager can act immediately to direct the truck to a preferred maintenance shop on the truck’s route right from the Intangles platform.

Bestpass hires new executives

The new hires are expected to help Bestpass scale service offerings and network integrations for commercial fleets and owner operators. 

logo-Bestpass-Shay-Demmons-Scott-Chao-executive-hires
Ford Trucks, Irdeto announce cybersecurity partnership

Irdeto will provide Ford Trucks with a fully managed key lifecycle management service.

ford-trucks-irdeto-logo-combo
ServiceTitan, Thumbtack integrate job management tech

The companies say this will let local service businesses manage booking requests and cut down on time toggling between platforms.

ServiceTitan-Thumbtack-logo-name-combo
TechCelerate Now awarded phase 2 contract

The program aims to reduce accidents by speeding up the trucking industry’s adoption of ADAS systems.

TechCelerate-Now-FMCSA-US-DOT

Other Posts

FTR: Diesel cost spikes as TCI falls in February

With a nearly 4 point fall, FTR says a spike in diesel prices is mainly to blame for the deterioration in market conditions for carriers.

FTR-Feb-TCI
FTR announces new senior rail analyst

Before FTR, Towers worked directly with Class Is, shortlines, OEMs, operators, and private equity clients as a freight rail specialist.

FTR-joseph-towers-senior-analyst-rail
FTR: Class 8 orders down more than 30% month-over-month

Despite the substantial drop from February, FTR says the market is performing well, as March orders are on track with 2023.

FTR-March-24-Preliminary-Class-8-Net-Orders
Bosch introduces RevX dispatcher optimization tool

Aiming to reduce the number of empty miles driven, Bosh says RevX enables fleets to maximize revenue by efficiently booking optimal loads.

Bosch-RevX-dispatcher