The challenges for the drayage industry in 2012 include possible hours of service changes, tight U.S. truck capacity with increasing driver shortages, further federal enforcement as a result of the CSA program, change and transition complications as additional steamship lines implement the new chassis model, and the effective execution of the highway reauthorization bill for transportation spending.
If implemented, the proposed HOS changes would cause major operational issues for our industry. The proposed changes would potentially decrease driving and on-duty times and extend the restart provision. Both would be problematic, particularly when combined with the current driver shortages. Retention and recruitment of drivers with the right background and driving records already are a challenge in 2011 and the proposed HOS changes would make matters worse.
Since the rollout of CSA in December 2010, the drayage industry has increased its focus on safety and our customers have started to inquire and review drayage company’s safety scores. I expect this positive development to continue into 2012 as company’s risk managers become even more aware of this safety assessment tool.
While not all steamship lines have moved to the new chassis model yet, further roll out is expected in 2012. This new U.S. model allows drayage operators to concentrate on their core business rather than on chassis availability. This permits more moves per day, potentially increasing revenue and ensuring good order chassis’ are available as well as reducing diesel-related emissions.
Drayage rates in 2012 are expected to see healthy, market-driven increases, growing 6 to 9 percent over 2011. These rate increases reflect the margins necessary to assist the drivers’ ability to earn a competitive income and for drayage companies to retain the drivers services. The industry must stay ahead of these trends. The alternative is driver, rate and service instability.