This put up is a part of a sequence sponsored by IAT Insurance Group.
Many of the highest points dealing with the trucking business this 12 months all roll up into one prime supply: the financial system.[1]
In 2022, the price of working within the trucking business reached a 15-year excessive, with the price of working a single truck reaching $2.251 per mile and a mean $90.78 per hour.[2] While the motive force scarcity is down for the second straight 12 months, to about 60,000 within the second half of 2023, the underlying issues driving this market proceed.[3] Long work hours, aggressive pay and driver {qualifications} stay high of thoughts considerations, and because the variety of job alternatives for drivers is on the decline post-pandemic, the funding to enhance these areas is scarce.
These developments are compelling causes for fleet house owners to discover revolutionary methods to chop bills. However, considerations heighten when the mistaken corners are lower.
To navigate this pressure and ease the hiring course of, a rising variety of fleets are shopping for or utilizing vans which are under the burden threshold that requires the operator to carry a business driver’s license (CDL), thereby increasing the pool of drivers and often accessible at decrease pay. Some fleets can also accomplish that to keep away from the numerous regulatory necessities for CDL certified drivers and their employers, together with however not restricted to drug and alcohol testing.
Some firms are going so far as modifying vans to change their goal and keep away from CDL compliance necessities.
Issues come up when the precise gross weight of a truck just isn’t considered. Gross Vehicle Weight Rating (GVWR) is an important security metric representing the utmost loaded weight of a automobile or trailer as decided by the producer, encompassing not solely the burden of passengers and cargo but additionally the automobile itself.
According to federal laws, if a automobile has a GVWR of 26,000 kilos or much less, the operator just isn’t required to own CDL, however this exemption doesn’t authorize loading the truck past the desired GVWR and having it operated by a non-CDL driver. Any truck weighing 26,000 kilos and above requires a CDL to function,[4] no matter whether or not the truck is designed for it or at what weight it’s registered.
The 26,000-pound rule creates regulatory grey areas, particularly for shifting and storage fleets, the place the burden of the products being transported is troublesome to precisely decide. In the occasion of a crash, even when it’s not the fleet’s fault, legal responsibility could fall on the fleet if the motive force lacks the right licensing.
5 greatest practices for guaranteeing compliance with CDL laws
Navigating the laws surrounding CDLs in a difficult financial system requires a stability between cost-saving measures and accountable fleet administration. Noncompliance with CDL laws can have extreme long-term monetary and reputational penalties. To safeguard your fleet’s success, observe these 5 greatest practices for prioritizing compliance.
- Focus on not overloading. Train drivers to acknowledge what constitutes a full load inside the limits of their automobile’s GVW and CDL {qualifications} and search for alternatives to acquire correct weight readings from licensed scales earlier than embarking on a visit. Both the motive force and the estimator chargeable for price and run estimates have to be vigilant in the course of the preliminary evaluation of the load. When estimating necessities for a transfer, the estimator ought to contemplate the variety of vans wanted to securely transport the products with out overloading.
- Weigh vans early in journey. Encourage drivers to have vans weighed early of their journey, ideally at licensed scales accessible at truck stops earlier than arriving at DOT weigh stations. Being proactive permits for the identification of potential overloads earlier than reaching the purpose of inspection. Drivers can then take crucial actions to treatment any obese, akin to redistributing the load or eradicating extra weight.
- When doubtful, ship a second truck. Err on the facet of warning when there’s uncertainty in regards to the load approaching its restrict. In the occasion of a roadside inspection, authorities could require sending one other truck to alleviate the load. While this incurs minor prices, the potential penalties of not complying, together with reputational harm, fines and insurance coverage problems, far outweigh the preliminary funding.
- Invest in CDL-required vans and rent certified drivers. While this may occasionally incur larger preliminary prices, it considerably reduces the chance of authorized problems and legal responsibility in case of accidents. The expense of buying CDL-required vans is a prudent funding in guaranteeing compliance, security and safety towards potential monetary and reputational losses.
- Prioritize ongoing schooling for drivers. Equip drivers with information on authorized limits, security protocols and the potential results of non-compliance on their data and the fleet’s popularity. Know the precise weight of your truck empty however totally fueled. An knowledgeable driver is extra prone to make accountable selections on the street, contributing to a tradition of compliance, security and professionalism inside the fleet.
ASK A LOSS CONTROL REPRESENTATIVE
Have a query on find out how to mitigate danger? Email losscontroldirect@iatinsurance.com for an opportunity to see your query answered in a future weblog.
By Jaden Tareta and Christopher Parker
[1] American Transportation Research Institute “Critical issues in the Trucking Industry – 2023,” October 2023.
[2] American Transportation Research Institute “An Analysis of the Operational Costs of Trucking: 2023 Update,” June 2023.
[3] TruckingDive “Trusting driver shortage falls significantly to 60K, ATA reports,” October 16, 2023.
[4] U.S. Department of Transportation “Commercial Motor Vehicle Driver,” March 30, 2021.
Topics
Auto
Interested in Auto?
Get automated alerts for this subject.