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Released: August 8, 2007
NASSTRAC Supports Stay in Hours of Service Ruling
Shipper groups such as NASSTRAC, as well as carrier groups such as the ATA, are concerned about recent events involving Hours of Service regulations. On July 24, the U.S. Court of Appeals for the D.C. Circuit vacated the 11-hour driving time provision and the 34-hour restart provision of the HOS regulations. As a result, it threw out two provisions of the current rules challenged by Public Citizen and other safety advocates. NASSTRAC and H&PCLC intervened in the court case and joined ATA's brief. According to NASSTRAC Legal Counsel John Cutler, one of the provisions rejected by the court increases driving time per duty period from 10 hours to 11 hours. The maximum driving time will presumably return to 10 hours, if the court decision is not stayed.
The other provision rejected by the court is the '34 hour restart provision,' said Cutler. "Under this provision, drivers could restart their weekly on-duty clocks whenever they were off duty for 34 hours straight.
This provision was challenged as allowing drivers to operate up to 17 more hours in a 7 day week than earlier rules. It's not clear what effect the court's rejection of the 34 hour restart provision will have on motor carrier operations. The most likely disruption may be to operations of long-haul TL carriers." This will most certainly both shippers and carriers who are members of NASSTRAC.
In addition, OOIDA, the independent owner-operators' group, challenged the new rules insofar as they required at least 8 hours of sleeper berth rest.
OOIDA argued that team drivers using the sleeper berth in shifts of at least
2 hours at a time should be acceptable. The court rejected OOIDA's appeal.
According to Transport Topics, these issues will have to be reconsidered by FMCSA, and ATA will seek a stay of the court's decision to permit the current rules to remain in effect while FMCSA attempts to cure its procedural errors in new proceedings. NASSTRAC supports ATA as to a stay and in the new FMCSA rulemaking proceedings. NASSTRAC will continue to monitor and take an active role in the situation.
NASSTRAC'S POSITION ON HOS RULING IN THE PAST NASSTRAC has actively supported the trucking industry on the Hours of Service front and in many other ways (ergonomics, hazardous materials, Highway Bill, etc.) for many years. After seeing the proposed rules issued in 2000 by FMCSA, which would have been terrible for carriers and shippers, NASSTRAC filed comments supporting ATA's position and John Cutler attended a public meeting held by FMCSA, and spoke out on behalf of NASSTRAC shippers and the trucking industry.
NASSTRAC welcomed the 2003 rules, and, when they were struck down by the court of appeals, NASSTRAC supported a stay to enable the 2003 rules to remain in effect while FMCSA was reconsidering the rules. During that reopened FMCSA rulemaking proceeding, NASSTRAC again filed Comments supporting the trucking industry. Also, during the lobbying over SAFETEA-LU, the 2005 Highway Bill, NASSTRAC asked key members of Congress to support the
2003 hours of service rules.
When the 2005 rules (supported by NASSTRAC) were again challenged in court by safety advocates, NASSTRAC intervened in the court case in support of ATA, and the association joined ATA in briefing the case. Cutler worked closely with ATA in its efforts, and also attended the oral argument.
"Now that the court has again found fault with the rules, NASSTRAC is again ready to support ATA through a number of initiatives," said Cutler. Those include support for a stay, further comments at FMCSA, and encouragement of NASSTRAC members to write more letters to Congress.
Fed Holds Interest Rate at 5.25%
For the ninth consecutive time, the Federal Reserve voted to keep the benchmark U.S. interest rate at 5.25 percent. The vote to hold the federal funds rate unchanged was unanimous. The Fed said economic growth was "moderate" during the first half of the year, despite ongoing sluggishness in the housing sector, recent volatility in financial markets, and tighter credit availability for some businesses. The Fed last held the rate steady at its June 28 meeting and has not raised the benchmark rate that banks charge each other since last June, when it raised the rate by a quarter-point for the 17th straight time.
Following is the full statement from the Fed:
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. Economic growth was moderate during the first half of the year. Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.
Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.
Although the downside risks to growth have increased somewhat, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Michael H. Moskow; William Poole; Eric Rosengren; and Kevin M. Warsh.
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