Wiseway News

Hudson, WI, November, 2003 - The motor carrier industry has adopted new Hours-of-Service (HOS) rules, which go into effect January 4, 2004. Set by the Federal Motor Carrier Safety Administration, these rules address the issue of providing drivers with better opportunities to obtain sleep - and ultimately, prevent or reduce accidents attributed to operating their vehicles while drowsy or fatigued.

These new rules apply to all motor carriers of property - both private fleets and for-hire operations, which include common and contract carriage.

Many of our customers are unaware of the new HOS rules and the impact they will have. Wiseway's goal is to educate customers well in advance of the January 4th effective date and proactively make necessary operational changes to comply with the new regulations.

How do the new rules impact driver productivity and service?
These rules will undoubtedly present new challenges to all parties: drivers, carriers, shippers and consignees. The issue of most impact is how the driver's time is accounted for. All time, whether driving or not, will count toward a driver's 14-consecutive hour on-duty time limit. As a result, it will be critical that drivers get in and out of customer locations as soon as possible. This will allow them to be more productive within the 14 hours they have to work.

Will the time drivers spend waiting in line or loading/unloading at a customer location be considered "on-duty"?
Yes. Under the new rules, the 14 consecutive hour period starts for the driver as soon as he/she goes on duty, whether driving or "on-duty, not driving". If a driver starts his/her day at 6:00 a.m., he/she can no longer drive after 8:00 p.m., regardless of what he/she has done in the 14-hour time period. The driver must take a 10-hour break before driving again. Under the current rules, the 15 hours are not consecutive and may be extended by breaks or other periods of off-duty time.

Will these new rules result in cost increases?
We are currently analyzing the impact the new rules will have on our productivity. Research across the transportation industry indicates decreased levels of productivity that will need to be offset by the market. Any increased costs will vary, depending on freight characteristics.

Initial analysis within Wiseway indicates there will certainly be costs associated with keeping service levels where they have always been. In order to maintain our current service levels, we will need to add additional equipment and hire additional drivers.

What steps should we take, as a shipper/receiver?
Your role is critical under the new rules. The key is to keep drivers moving quickly in and out of your facilities. We are asking for you to be ready to accept your deliveries and to help reduce the amount of time drivers spend performing non-driving work, thus getting them back on the road sooner. Situations causing the most impact include: live load and unload appointments, excessive driver time at the dock to load/unload and miscellaneous waiting time (i.e. paperwork).

What if a driver runs out-of-hours while waiting at my dock or en route?
A driver who runs out-of-hours at a customer facility cannot move until he or she regains the appropriate amount of hours to go back into service. Once the driver runs out-of-hours, he/she is not allowed to leave the customer's property to seek an alternative resting location. If the driver cannot leave, he or she will need space to park the truck until he or she is able to return to on-duty status.

How will Wiseway attempt to avoid drivers running out of hours in the midst of deliveries?
There is no doubt these new rules will create new service challenges. We will work case-by-case on the issue of hours prior to dispatching each driver and load. Wiseway is already determining the best ways to service our customers when these new rules go into effect. For example, we will make more use of relays to conserve driver hours and keep their time focused on deliveries.

Will the new rules cause a decrease in pay for drivers?
Wiseway is currently reviewing driver compensation and will be analyzing productivity and the impact it will have on driver wages and customer service performance. Any reduction in the hours a driver has available to work may affect their earning potential. Under the new rules, all time on-duty, whether driving or not, will count towards their total hours available. Any way that customers can help minimize the amount of non-driving work a driver must do will help the situation.

Will the new rules make it harder to hire drivers to meet demand?
The motor carrier industry is already challenged in recruiting and retaining quality drivers and the new rules will certainly create additional challenges for us. Industry analysts have estimated there would need to be an additional 84,300 drivers hired to maintain current transportation demands. The current regulatory environment, as well as the lifestyle requirements for over-the-road drivers, makes this a very difficult task. Any decrease in driver compensation would add to this difficulty as well.

What if a carrier chooses not to comply, or to "creatively log" driver hours to circumvent the rules?
This is a Federal law. Some carriers will attempt to get around the rules, but Wiseway will not risk our operation by "bending the rules". Compliance and safety have always been top priorities at Wiseway, and will continue to be. Drivers or carriers who violate these regulations face serious penalties. A driver may be placed out-of-service until they've accumulated enough off duty time; the carrier may be fined $550 to $11,000 per violation; and other Federal criminal penalties may be assessed. Carriers may lose their satisfactory rating for non-compliance. In some cases, carriers may even lose their operating authority and be shut down by the Federal Motor Carrier Safety Administration.

Wiseway will comply with these regulations the highest level, while striving to provide the customer-driven service you are accustomed to.

How can I find out more about the Hours-of-Service Rules?
For more information, please feel free to contact your Wiseway representative or our Director of Safety. Watch for more information from Wiseway on the Hours-of-Service issue, and visit our Web site for updates.