From SCDigest's On-Target E-Magazine
Sept. 21, 2011
Logistics News: Time for Shippers to get Involved to Battle War on Trucking, Mike Regan Says
Become Knowledgeable, Share the Information Internally, and Develop a Legislative Outreach Program, Regan Says; NASSTRAC and other Organizations Need more Shipper Support
SCDigest Editorial Staff
The war on trucking continues, and it's really time for shippers to get involved, says Mike Regan, CEO of TranzAct Technologies and long-time figure in the trucking industry.
Regan has been calling out the worrisome signs, mostly related to government activity and regulations, since late 2010. In an interview with SCDigest editor Dan Gilmore last week, he continued that theme, and was especially adamant that shippers need to get involved both in organizations that fight for their interests and with their own local legislators at the federal and state levels.
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| Regan also encouraged shippers to join and support groups such as NASSTRAC, NIT League, TIA, ATA and other associations that are fighting the battle for them in most cases. |
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What Do You Say?
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"First, we need to all agree that there is in fact a war on trucking," Regan said. "Second, you need to look at the evidence that supports that thesis. If you take a look at what's happening in Congress, FMCSA [Federal Motor Carriers Safety Administration] rulemaking initiatives, and the overall climate, whether it's things happening at the federal level or the state, it's real obvious that there is in fact a war on trucking."
The result of this is that it is going to be more expensive to operate a truck, inevitably resulting in higher costs for shippers, Regan says.
Among the issues noted by Regan include potential changes in hours of service rules that could be announced at any time by the FMCSA and are likely to reduce available driving times, a likely new rule requiring electric on-board recorders (EOBRs) in trucks, the proposed SHIPA legislation that would reduce the size and weight of trucks, resistance to a competing bill that would allow truck weights on federal highways to increase to 97,000 pounds with the addition of a sixth axle, and several other proposals at the federal level.
Regan says there are also worrisome trends at the state level in many jurisdictions, especially in the area of tolls. He said there are a number of proposals for significant increases in tolls for truckers, in some cases by more than triple digit percentages Regan , noted one proposal in New Jersey that would increase the cost of a cross-state trip for a truck from $40 to $100.
"The reality of it is, if shippers don't wake up and get involved in addressing some of these issues, the impact of regulatory costs alone will add anywhere from 12-15% to the cost of shipping goods."
If It's Really a War, Who is Fighting It?
Regan says that in some cases, rail interests are behind the efforts, which is clearly the case in at least one example, that of opposition to the Safe Truck legislation that would raise the weight limits for trucks.
"Too a certain extent, the railroads and parties that are sympathetic are doing what any reasonable business executive would do, and that is increase the cost of doing business with your competitor," Regan says.
Want to View the Full Video Interview? See it Below
(Transportation Management Article Continued Below)
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Become knowledgeable and educated on the range of issues, which he said is not very hard to do, noting the work Supply Chain Digest and other publications have done to keep shippers and others aware of the legislative and regulatory developments, plus the information available from associations like NASSTRAC and the American Trucking Associations (ATA). 