Trucker Rests Boost Shipper Costs on Productivity Drop: Freight
New U.S. safety regulations requiring truckers to work shorter shifts may cut productivity, worsen a driver shortage and boost freight costs for the $8.4 trillion in goods hauled each year by American big rigs.
That is to be balanced by a decline in deaths and injuries from crashes and savings in health-care costs as the regulations improve driver safety, according to federal regulators.
The rules that took effect this month may reduce productivity by about 3 percent, translating into $18 billion in additional costs for an industry with annual revenue of around $600 billion, according to freight data and forecasting firm FTR Associates. Training and transition expenses may add another $320 million to truck companies’ annual tabs, according to an estimate by the Department of Transportation. Read the full article: http://www.bloomberg.com/news/2013-07-19/trucker-rests-boost-shipper-costs-on-productivity-drop-freight.html.