March 23, 2023

The Trucking Industry: 3 Key Regulatory Changes That May Not Be Too Far Down the Road

This year, the trucking industry will experience proposed regulatory changes that could possibly go into effect in the coming months. Here, we’ll look at three key changes currently being considered that could impact your transportation clients.   

1. New Financial Responsibility Requirements
To better address the growing issue of brokers who don’t always compensate motor carriers, the FMCSA has proposed changes that will allow carriers to submit claims directly to the financially responsible provider to collect payment. 

If this new rule goes into effect, it will provide additional financial protection for motor carriers against unscrupulous brokers who are unwilling to pay their bills. According to the FMCSA, this new rule-making is an attempt to suspend the operating authority registration of brokers who remain delinquent, prior to unpaid claims exceeding the brokers’ financial responsibility instruments.  

[The] FMCSA believes that most brokers operate with integrity and uphold the contracts made with motor carriers and shippers. However, a minority of brokers with unscrupulous business practices can create unnecessary financial hardship for unsuspecting motor carriers.

Source: The FMCSA, as reported by HDT Trucking Info

2. The Possible Resurrection of California’s AB5 Law
The law aimed at reclassifying independent truckers as employed drivers is yet again up for discussion. According to the Truckload Carriers Association, the preliminary injunction that once prevented California from enforcing the AB5 law has since been lifted and could be put into law. If this happens and/or if other states enact similar rules, it could force fleets to convert owner-operators to company drivers. 

If [AB5] changes and/or if other states enact similar rules forcing fleets to convert owner-operators to company drivers, it will put a great strain on the supply chain.

Jim Ward, President of the Truckload Carriers Association

Claiming new legal arguments, the California Trucking Association and the Owner-Operator Independent Drivers Association will continue to pursue legal options in an attempt to invalidate the law. 

3. Rollout of the EPA’s Climate Program
At the end of March, the Environmental Protection Agency (EPA) will issue a final ruling on heavy-duty trucks. The goal of the EPA is to launch a nationwide program aimed at imposing stricter emissions regulations to help reduce air pollution created by the industry. 

By implementing this program, the EPA believes it can increase the longevity of truck engines and the emissions they produce by as much as 60% by 2045. If passed, the program will go into effect in 2027 and will impact truck fleet operators as well as truck and engine suppliers.

We will be looking very closely at the proposal put forth by the [EPA], working with them to shape an outcome that builds on those reductions, while not hurting the reliability of the trucks and trailers we purchase, nor imposing unreasonable or unworkable costs on our industry.”

Chris Spear, President and CEO, American Trucking Association

To learn more about Across America’s transportation products and how we can best serve you, please email info@acrossamericainsurance.com or visit acrossamericainsurance.com.