On December 5, 2024, the United States Department of Transportation (US DOT) will implement new regulatory changes for drivers requiring state driver licensing agencies to consult Federal Motor Carrier Safety Administration’s (FMCSA) national Drug & Alcohol Clearinghouse. These rules apply before issuing, renewing, transferring, or upgrading any commercial driver’s licenses (CDLs) or commercial learner’s permits (CLPs). The mandate prevents drivers with unresolved drug or alcohol violations from obtaining or keeping commercial driving privileges. With these new regulations, US DOT hopes to improve road safety by ensuring only qualified drivers operate commercial vehicles.
The Clearinghouse serves as an online database that provides real-time access to records of drivers’ drug and alcohol program violations, including positive test results and test refusals. Employers, state licensing agencies, and law enforcement officials can use this resource to verify a driver’s eligibility to operate commercial vehicles.
Additionally, US DOT has introduced regulations establishing qualifications for oral fluid specimen collectors and standards for monitoring and evaluating trainees’ mock collections. These rules prohibit anyone, except the testing driver and a Department of Transportation agency representative, from being present during specimen collection. These measures aim to standardize testing procedures and maintain the integrity of the drug and alcohol testing process
Source: Transport Topics – New Drug & Alcohol Clearinghouse Regulations Take Effect
The Short-Term Effect on the Industry
The change happening in December affects an already tight holiday season. Stricter regulations make it harder for drivers to return to service, reducing the pool of qualified drivers. The holiday months already see less drivers available due to taking time off for the holidays.
This can add strain to the industry during a time with tight capacity. Shippers may find a challenge in covering some loads or see an increase in rates for some lanes. How this will affect shippers and brokers will depend on the regional demand, their shipping patterns, and the capacity in the market.
The Long-Term Effect on the Industry
The freight recession, which began in 2022, has persisted for the past two years. Lagging shipping demand, inventory de-stocking, rising interest rates, and excess carrier capacity have driven this downturn. Industry experts suggest that the market may be nearing its lowest point, with a recovery anticipated in 2025.
The new proposed rules could help reduce available capacity, potentially shifting the market dynamics in favor of carriers. With fewer drivers on the road, shippers would have a smaller pool of options, tightening capacity across the board. While the full impact remains to be seen, this regulatory change could help tip the market balance.
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