Will your household goods program survive the perfect storm of new regulations and lack of qualified drivers this year? 

July 1, 2013 - The Federal Motor Carrier Safety Administration began rigorously enforcing CSA (Compliance Safety Accountability). CSA limits the hours-of-service for on-duty time for truck drivers. This poses a real problem for the moving industry because drivers are not only driving; but also packing, loading and unloading their deliveries as well. It is estimated that there will be a 3-5% loss of productivity or greater as a result of the new regulations. Drivers face serious consequences if their CSA score drops which can include suspension and even termination.

January 1, 2014 - The California Air Resource Board, or CARB, phased out truck engines older than 2009. This makes it illegal to operate a truck in the state of CA unless the truck owner modifies the engine at their own expense. The required modification can cost anywhere from $15,000 to $20,000. The only other option would be to purchase a new compliant vehicle. But this is far from an inexpensive alternative. Did you know that a new truck can cost upwards of $150,000?  Penalties are pretty harsh and include impounding the truck, shut-downs, fines and indefinite suspensions. CARB will severely limit the number of compliant trucks that can enter the state of California.

Over the last decade, the American Trucking Association has reported that over 25,000 long-haul drivers have left the industry. The current ranks are aging and recruiting new talent is difficult given the earning decreases (as a result of high discounts), extensive time away from home, unpredictable schedules, and now CSA and CARB. 

It remains to be seen whether supply-and-demand pricing, increased operational costs passed on to the consumer, possible delivery delays or the reduced ability to handle clients' moves will come to pass. NRI Relocation is monitoring our shipments carefully and choosing suppliers based on their ability to meet our customer's needs. This includes the use of containerized shipments when needed. We'll have more to come on that topic in future newsletters.

If you need more information on this topic, please contact us!