New Trucking Rules Are Here To Stay, Firms Worry About Financing
The regulations created in 2011 to restrict the work week of commercial truck drivers seem here to stay, after appeals from the major truck driver constituencies, the American Trucking Associations and the Owner Operator Independent Drivers Association, failed to have the laws overturned. The primary concern of truck drivers is the loss of billable hours that they are experiencing because of the regulations, which force them to take rest periods and change the protocols surrounding the restarting of the working week. The rationale behind the new laws is that many of the accidents caused by trucks and buses on the road involved fatigued drivers whose reaction times and awareness of driving conditions were compromised by their lack of energy. The DOT estimates that up to 13% of drivers involved in serious accidents were fatigued, and that the new regulations and mandated rest periods will save 19 lives each year thanks to better rested logistics workers. It is hard to gauge the immediate economic effect of these new rules, with both sides of the debate arguing different outcomes. The DOT claims that less than 15 percent of truck drivers will be effected by the change in rules, while many trucker groups claim that the changes will sweepingly effect all drivers in the industry as the potential earnings they can make each week will be cut down by over 10 billable hours. Many of the issues in the trucking industry stem from a lack of new blood in the pool of drivers. There has been a steady decline in the number of new faces in the trucking industry, as would be drivers are drawn to other careers, potentially put off by the nomadic lifestyle of the commercial trucker. Business owners in trucking have a lot on their plate. Compliance with new rules, the acquisition of new employees and updating fleets with new GPS and Green technology meant that the demand for business funding from logistics professionals is great. Unfortunately, due to a high risk loan designation from banks, it can be extremely difficult for trucking firms to find the financing that they are looking for. Horizon Business Funding is proud to work with logistics professionals across the country. However these regulations will effect the industry, the need for funding is a constant in the business world, and Horizon Business Funding can provide it quickly and reliably. The future of the logistics business should be centered around efficiency, safety and professionalism. Whether you believe that the regulations will be a speed bump or a fast lane towards this goal, the professionals in the industry will see it to that goal.
Photo Credit to Al Pavangkanan on Flickr