Page 11 - ATR 5 2014 web

nEWS in BriEf

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

aRkansas tRuCking RepoRt | issue 5 2014 11