NEWS IN BRIEF
J.B. HUNT WHITE PAPER PREDICTS SHIPPING RATE INCREASE FOR 2015 In a white paper, released in
October, J.B. Hunt concluded that ship- ping rates are expected to continue to increase in 2015. The report cited six key stresses on the industry: driver shortage and reten- tion, tightening regulations/Hours of Service, capacity, railroad invest- ment, rising equip- ment costs and falling productivity. “The trans-
portation industry faces many chal- lenges in 2015 and beyond,” the white paper concluded. “As highlighted in this report, increas- ing recruiting expenses and mile- age pay, truck and maintenance costs, preparation for future regulations on equipment, lost productivity due to new regulations and a precarious market capacity situation are all stressing forces. Shippers should prepare for significant cost recovery and net- work rationalization efforts from pro- viders of both highway and intermodal services beginning in late 2014 and into 2015.”
ARKANSAS TRUCKING REPORT | Issue 5 2014 The white paper did not estimate
how much rates might go up, but it is likely the shipper will not absorb much of the increase, passing any additional shipping costs on to the consumer. The paper predicted that the market
will stay near tipping point because of the strength of demand.
“At best,
seasonal peaks and any event which swells demand or degrades capac- ity will cause a series of short capacity crises. Another wave of regulations will likely hit in 2016 (including the electronic log mandate), potentially cre- ating capacity concerns, thus making coop- erative carrier relationships highly neces- sary.
The truck-
load sector cannot meet current demand as changing reg-
ulations, the driver shortage and under- investment make capacity expansion unlikely, the Hunt paper pointed out. “Projections for the full year show
a slight softening and there may be greater capacity available for truckload
in the second half of the year,” the paper noted. “However, current capacity trends are holding at 98 percent, just below the point of serious shortages. FTR Transportation Intelligence predicts the fragile balance to “continue until regulatory pressures increase again in later 2016.” To read the white paper, visit J.B. Hunt’s website,
www.jbhunt.com.
FIGHT OVER HOURS-OF-SERVICE RULES STALLED, BUT NOT OVER Efforts to amend last year’s hours-
of-service (HOS) rules have faced oppo- sition, but Philip L. Byrd, Sr., immediate past-chairman of the American Trucking Associations, says the ATA is “bound and determined to bring about positive change” in federal trucking regulations. Byrd reminded attendees the
annual McLeod Software user confer- ence in Washington that rolling back the restrictions on truck drivers’ ability to use a 34-hour restart to begin a new work week is still a top priority. “We have not left any stone
unturned in trying to stop the restart changes,” said Byrd, president and CEO of Bulldog Hiway Express in Charleston, S.C.
Because the rules require drivers to
include two consecutive 1 a.m. to 5 a.m. periods within a “restart” between work weeks, more drivers are on the road at 5 a.m., at the start of rush hour, putting more drivers at risk. Byrd reported that former FMSCA administrator Anne Ferro said in a
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