Increasing Insurance Costs
The American Transportation Research Institute (ATRI) found that rising insurance premiums make up the largest increases in costs for trucking companies. For example, between 2014 and 2015, insurance costs for trucking companies rose by 29 percent. Regulations require that all trucking companies have a significant amount of insurance, and the cost can add up quickly for LTL trucking companies.
One way that trucking companies are helping to lower the cost of the insurance is by implementing more driver safety training programs. These programs can help ensure that the drivers will have fewer accidents, making the companies’ insurance premiums less likely to go up. Ensuring vehicles are in top condition will also lessen the potential for accidents.
Hours of Service Rule Changes
The hours of service rules limit the amount of time that truck drivers can work for. Drivers must take 10 hours off of duty, and they also have to take a 30-minute rest period for every eight hours of driving. Drivers are also required to get enough rest. This can limit the efficiency of these drivers.
Emissions and Fuel Regulations
Some emissions regulations can decrease the efficiency of the heavy-duty engines that LTL trucking companies use. These regulations may also result in engines that have the lower horsepower. It can be challenging for trucking companies to stay on top of all the required safety inspections for big rigs.
The operating environment for trucking companies has gradually changed as security regulations have increased. For example, when bringing goods from one country to another, such as from Canada to the United States, trucking companies must travel through security. While these security measures can provide peace of mind, they require the local trucking companies to spend a longer amount of time to meet the regulations.