The new hours of service (HOS) regulations is not going to boost trucking rates so much as it will create increases to “accessorial” services, according to third party logistics firm USCO Logistics, a wholly owned subsidiary of Kuehne & Nagel.
“It has been forecasted that there will be a 15% to 20% increase in transportation costs, but not necessarily from pure linehaul rates,” Tom Jones, USCO’s VP-Delivery Solutions, explained to Fleet Owner. “In response to the new HOS regulations, trucking rates will more than likely increase, but the real pressure on shippers is going to come from new and higher accessorial charges, such as loading and unloading fees, sourcing and segregating freight, equipment ordered but not used, detention with power, etc.,” he says.
“A lot of folks that have historically abused trucking services are either going to have to tighten up their operating practices or pay more in terms of these accessorial charges,” Jones added. “The alternative is that trucks will simply not be available.”
“As a 3PL, we are not necessarily encumbered with one mode. We have the flexibility to look at a lot of different transportation options and combinations for customers,” he says. “We may consider moving to more team driver service, for example, or intermodal providers. We have the applications, leverage, and professional staff required to measure, monitor, and respond to the changes that are going to happen.”