A good friend of mine says that every truck being held up at a shipper/receiver is capacity taken out of the market.
A truck has to be loaded/offloaded.
A truck sitting is a truck that is not performing it’s primary function, moving freight. In that sense, capacity is taken out of the market. More trucks are needed to move the freight that is not being moved by trucks sitting.
If sitting trucks created a shortage then Demand would dictate that there be more Supply and rates would go up.
If capacity is taken out of the market because trucks are being loaded/offloaded and it does not increase the price of capacity then we have two things happening.
1. We have overcapacity
2. We have capacity that is being used as intended.
It’s built into the business model for X number of hours of capacity to be sitting idle.
It is reasonable for the carrier to add 4hrs into the rate and then start charging detention time on either end if the prepaid time of 2hrs each is exceeded.
Capacity that is paid for is not capacity taken out of the market.
Unpaid capacity is oversupply and reduces the value of needed capacity.
The old 2hr, first 2hr free, rule does not apply to Employee Drivers but Employee Drivers believe it does just as they have been taught that milage pay compensates them for All Time.
Not charging for the first 2hrs on either end per an agreed upon rate is very possible due to predatory pricing. Detention has become a negotiating tool for the carrier to do the job for less.
If the carrier negotiated away detention time does that make it legal for them Not to pay their employees for doing a job as directed?
Can McDonald’s Not pay it’s employees for 1hr prep time before the store opens because McDonald’s is not generating income as the store is closed?
My friend can’t afford to have his unit being detained but he can’t charge detention time either because his competitors do not charge detention time, or so we are led to believe.
My friend would say that we have underutilized assets sitting at the docks. This is true, but it must be affordable, for some, to have assets sitting at the docks or it wouldn’t be happening.
Affordable under what business conditions?
Affordable for who?
If underutilized assets are in the market then we have underutilized capacity in the market. Capacity that may readily become utilized capacity to meet growing demand.
This is smart business.
Anticipate what the customer may need and be prepared to sell them what they want.
How is underutilized capacity affordable?
Underutilized capacity, equipment, that is on standby may be fully engaged for profit as needed.
Equipment is an asset, money in the bank.
Underutilized capacity, unpaid labor that is on standby, only contributes to overcapacity thus we have unpaid oversupply ready to meet demand.
Labor, an operational expense, not being paid makes it affordable to have underutilized capacity, equipment, sit idle.
Employee Drivers Not being paid for their time doing the job must conserve log book hours so that they may be available for producing, running the miles for which they get paid.
The ability to only pay piecework wages is a means to have Available Working Hours, capacity, ready to go online in order to meet Demand.
Drivers log “Off Duty” when they are in fact “On Duty Not Driving”.
Is an Employee Driver who is instructed to load day after tomorrow sitting idle tomorrow per the instruction of their supervisor?
Does the carrier Detain the Employee Driver as much if not more than the loading docks?
Unpaid capacity, labor, is overcapacity and drives the value of capacity down.
Has the introduction of the ELD prompted Employee Drivers to ask for detention pay because of, ELD documented, lost production hours or log book hours that could no longer be hidden away by fudging the log book?
Will having to pay detention time, incur an additional operating cost that would now have to be negotiated into the rate thus raising the rate?
How will the Predators work around this to remain competitive in the cut-throat market they created?
Does HR 5417 provide them a tool to work with?
The market has finally swung in favor of the Drivers!
How long will it take for the ATA members, Shippers/Receivers, and Carriers, using what tactics before they will be able to force the market to swing back to their favor?
The ATA, since 2000, has been pushing for F4A Preemption which will make paying Employee OTR Drivers anything other than their piecework wages optional, no matter how many hours they work. This legislation will supersede Federal and State Labor Code that currently requires an employer to compensate the employee for doing their job as controlled or required. F4A Preemption will ensure Drivers are not paid for all time working, including detention time.
If passed F4A legislation, also known as the Denham Language, will make Piece Work Wages the standard method of pay, relieving carriers from the legal obligation of paying Drivers for ALL TIME, including detention time.
Do you want more “Unpaid Over Capacity” in the market
Title 49 Section § 785.7 Judicial construction.
The United States Supreme Court originally stated that employees subject to the act must be paid for all time spent in “physical or mental exertion (whether burdensome or not) controlled or required by the employer and pursued necessarily and primarily for the benefit of the employer and his business.”
The 70 in 8 rule, the 34hr restart, the ability to legally log “Off Duty” while being detained because the Driver is resting in a parked CMV, the 11hr drive time, etc. has given us Additional Available Working Hours and Flexibility but we Want More So We Can Run More Miles.
We think more miles equals more income because we don’t consider the overall cost.
Have we seen rate increases in the past when capacity was added by increasing flexibility?
What have we done with the additional working hours and flexibility that has been granted us?
Why do we keep asking for more production time instead of demanding more pay?
The inception of the ELD has taken an estimated 10% capacity out of the market or the value of 174,814 trucks has been pulled out of the market.
Rates have gone up and Employee Drivers are seeing pay increases.
Could minimizing Black Market or Illegal Hours from the marketplace equaling an estimated 174,814 trucks be a contributing factor or cause for this increase?
ATA members, Shippers, and Receivers are screaming “Truck Shortage” because they want and are accustomed to the overcapacity that keeps rates low.
1,748,140 trucks will add an additional 3hrs a day per HR 5417 as the 14hr rule would become a 17hr rule. That’s a maximum potential of 5,244,420 Available Working Hours a day being put back into the marketplace.
This number is the maximum so let’s work with 25% of it, 1,311,105 Available Working Hours a day.
Available Working Hours you ask?
Yes, under current circumstances many if not most Drivers will use this time to displace hours spent at the loading dock or waiting for dispatch. Up to 3 unpaid working hours per Driver will now be put back into the market because we now have a 17hr rule.
Many will be directed to use this time to increase their drive time lengthening the production portion of their workday.
HR 5417 will put More unpaid capacity into the market.
Can you sell your apples if I am giving apples away for free?
1,311,105 Available Working Hours is the equivalent of approximately 163,888 trucks a day being put back into the market.
ELD’s took out the equivalent of approximately 174,814 trucks a day and we want to add the equivalent of 163,888 trucks a day back in just because some Drivers claim we need flexibility to do as we please instead of Demanding To Be Paid For The Time Spent Doing THE JOB AS REGULATED???
Do you really believe that the loading docks will not take advantage of the new 17hr rule?
Are we to expect the carriers to NOT Take Advantage of the 17hr rule by having their Drivers NOT Maximize their Available Working Hours?
Will Employee Drivers be paid for an additional 3hrs of detention time or will this working time continue to be uncompensated?
ELD’s took 10% capacity out of the market and OOIDA members, with the support of other Drivers, want to put 9.4% capacity back into the market???
I am a Staunch OOIDA member, OOIDA staff has told me that it would be coercion for the carrier to instruct their Drivers how to use this time.
OOIDA staff, we would now have a 17hr rule and the carriers, the employers, would not have a say in how their Drivers production time is to be used???
OOIDA staff, aren’t the carriers liable for their Drivers time???
OOIDA staff, can an Employee Driver be reprimanded or terminated for improperly utilizing or for not using their Required non-production working time, the 30min and 10hr breaks in which they are REQUIRED by the carrier, their employer, Not To Work, Not to Better Themselves???
OOIDA members, do you think for one minute that the ATA isn’t going to, behind closed doors, Fight For This Bill so they can continue paying as little as possible while expecting MORE!!!
OOIDA members, with only 20% of our membership being Company Drivers have you considered how this will effect them?
OOIDA members, can you not see that if any one of Us gets hurt by this it will HURT ALL OF US???
I don’t understand how working more hours for less money does any of us any good.
Are We to continue doing what doesn’t work making the ATA members rich???
OOIDA members, when are we going to put Our Association to Work for Us instead of putting the OOIDA staff to work for the ATA, TCA and others who Profit When We Don’t!!!
We call ourselves businessmen but it is the ATA members and others who are profiting from our lack of business sense.
The ATA members know they are in business to make money.
All you guys seem to want to do is Work More For Less.
The ATA Has Taught Us Well !!!
Maybe I should consider withdrawing my OOIDA membership and stop flying OOIDA’s colors on my work shirts and place of business, the truck.
Not because of the excellent job the OOIDA staff does but because of the poor job the membership does steering Our Association.
OOIDA – Owner Operators, Independents, DRIVERS Association.
DRIVERS, That’s YOU Company Drivers!
DRIVERS, What Do You Have To Say About HR 5417???
DRIVERS, ever consider Joining Us so that you may contribute to the direction We Go In?
DRIVERS, is $45 a year more than you can afford only because You Have Been Conned Into Working For Substandard Wages and Working For Free?
Could it be possible to change that through an Association that works for you?
Pat Hockaday (JoJo)