This post is part of a series sponsored by IAT Insurance Group.
Many of the biggest issues facing the trucking industry this year all have one central cause: the economy.[1]
In 2022, operating costs in the trucking industry reached their highest level in 15 years, with the cost of operating a single truck reaching $2,251 per mile and an average of $90.78 per hour.[2] While the driver shortage has declined for the second year in a row, rising to approximately 60,000 drivers in the second half of 2023, the underlying issues driving this market remain.[3] Long hours, competitive wages and driver skills remain key concerns, and as the number of job opportunities for drivers declines post-pandemic, funding to improve these areas is scarce.
These trends provide compelling reasons for fleet owners to explore innovative ways to reduce costs. However, concerns increase when savings are made in the wrong places.
To address this burden and simplify the hiring process, more and more fleets are purchasing or using trucks that weigh less than the weight limit that requires possession of a commercial driver’s license (CDL), thereby expanding the pool of drivers who are typically lower Pay. Some fleets may also do this to avoid the many legal requirements for CDL-qualified drivers and their employers, including but not limited to drug and alcohol testing.
Some companies even go so far as to modify trucks to change their purpose and circumvent CDL compliance requirements.
Problems arise when the actual gross weight of a truck is not taken into account. Gross Vehicle Weight (GVWR) is a critical safety metric that indicates the manufacturer’s maximum loading weight of a vehicle or trailer and includes not only the weight of passengers and cargo, but also the vehicle itself.
If a vehicle has a gross vehicle weight rating (GVWR) of 26,000 pounds or less, the driver is not required by federal regulations to have a gross vehicle weight rating (GVWR). However, this exception does not authorize loading the truck above the GVWR and having it operated by a non-CDL driver. Any truck weighing 26,000 pounds or more requires a CDL to operate.[4] regardless of whether the truck is designed for this or what weight it is approved for.
The 26,000-pound rule creates regulatory gray areas, particularly for moving and storage fleets where the weight of the goods being transported is difficult to accurately determine. In the event of an accident, even if the fleet is not responsible, liability may lie with the fleet if the driver does not have the appropriate driving license.
5 Best Practices to Ensure CDL Compliance
Navigating the regulations surrounding CDLs in a challenging economy requires a balance between cost-saving measures and responsible fleet management. Failure to comply with CDL regulations can have serious long-term financial and reputational consequences. To ensure the success of your fleet, follow these five best practices for prioritizing compliance.
- Focus on not overloading. Train drivers to recognize what constitutes a full load within their vehicle’s GVWR and GVWR limits, and look for ways to obtain accurate weight readings from certified scales before driving. Both the driver and the estimator responsible for cost and mileage estimates must be vigilant in the initial load assessment. When estimating the requirements for a move, the estimator should consider the number of trucks required to transport the goods safely without overloading.
- Weigh trucks at the start of the journey. Encourage drivers to have trucks weighed at the start of their trip, preferably using certified scales available at rest stops, before arriving at DOT weigh stations. By acting proactively, potential overloads can be identified before the inspection point is reached. The driver can then take the necessary actions to eliminate any excess weight, such as redistributing the load or removing excess weight.
- If in doubt, send a second truck. Err on the side of caution if you are unsure whether the load is nearing its limit. In the event of a roadside inspection, the authorities may request that another truck be sent to lighten the load. Although this has a small cost, the potential consequences of non-compliance, including reputational damage, fines and insurance complications, far outweigh the initial investment.
- Invest in CDL-required trucks and hire qualified drivers. While this may involve higher initial costs, it significantly reduces the risk of legal complications and liability in the event of an accident. The cost of purchasing CDL-required trucks is a prudent investment in ensuring compliance, safety, and protection from potential financial and reputational loss.
- Prioritize ongoing driver training. Provide drivers with knowledge of regulatory limits, safety protocols and the potential impact of non-compliance on their records and fleet reputation. Know the actual weight of your truck empty but full of fuel. An informed driver is more likely to make responsible decisions while on the road, contributing to a culture of compliance, safety and professionalism within the fleet.
ASK A LOSS CONTROL PERSON
Do you have a question about risk mitigation? Email losscontroldirect@iatinsurance.com to receive an answer to your question in a future blog.
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 Drops Significantly to 60,000, ATA Reports,” October 16, 2023.
[4] U.S. Department of Transportation “Commercial Motor Vehicle Driver,” March 30, 2021.
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2024-03-14 04:13:38
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