| |
Released: November 3, 2009
DOT To Rewrite HOS Rule After Groups Suspend Suit
The Department of Transportation announced last week it will withdraw its controversial driver hours-of-service rule and write new regulations as part of a deal in which a coalition of advocacy groups agreed to suspend its federal lawsuit challenging the rule. Public Citizen and the Teamsters union have challenged the HOS rule because they say it increases driver fatigue. The groups twice have won federal court decisions that sent the rule back to DOT, with a third challenge was pending.
The HOS rule raised allowable driving hours to 11 from 10 during an overall workday, which it shortened by an hour to 14 hours. The rule also allowed drivers to “reset” their workweek by taking a 34-hour break. This rule will remain in effect during the DOT review. Transportation Secretary Ray LaHood said in a statement: “Safety is our highest priority . . . so we believe that starting over and developing a rule that can help save lives is the smart thing to do.” DOT said its Federal Motor Carrier Safety Administration would send a new proposed rule to the White House in nine months and publish a new final rule within 21 months.
In 2004 and in 2007, federal appeals courts struck down all or parts of the rule, but FMCSA’s revisions didn’t make substantive changes to the regulations, retaining the 11th hour of driving and the 34-hour restart. In 2004, a federal appeals court rejected the rule, saying FMCSA failed to consider the effect on driver health. In 2007, the court again sent the rule back to the agency because the court said it did not provide adequate time for public comment. The move to re-examine the rule could change those provisions, officials on both sides said.
Many in the transportation industry perceive that safety in the trucking industry has greatly improved while operating under the current hours-of-service rules, and point to a strong decline in truck-involved crashes on the nation’s highways. In fact, statistics illustrate that the number of truck-involved fatalities has fallen 19% since the first contested rule took effect in 2004.
NASSTRAC will continue to support reasonable Hours of Service rules that appropriately balance the interest of all Americans in highway safety with the needs of shippers, consumers, and the economy for an efficient, productive trucking industry.
Click here to download NASSTRAC Position Paper on Hours of Service.
Berkshire Hathaway to Buy BNSF for $100 A Share
Berkshire Hathaway, controlled by billionaire Warren Buffett, announced today it will buy freight railroad Burlington Northern Santa Fe Corp. for $100 a share, in a transaction worth about $44 billion. Buffett said in a statement the outright purchase of the Class 1 railroad was “an all-in wager on the economic future of the United States.” Berkshire Hathaway, which already owns more than 22 percent of the Fort Worth, Texas-based railroad, will pay $100 a share for the remaining shares. The price marks a 32 percent premium on the company’s $76-a-share closing price Monday and is almost double what BNSF shares were selling for in March, when the price dipped to $51.20 a share. BNSF Chairman, President and CEO Matthew K. Rose said the railroad’s leadership is “thrilled to have an opportunity to become a part of the Berkshire Hathaway family.” BNSF said that including the shares Buffett already owns and $10 billion in outstanding debt, the transaction is worth $44 billion.
ISM Manufacturing Index Improves in October
An index of U.S. manufacturing activity improved in October, the Institute for Supply Management reported Monday. ISM’s monthly factory services index rose to a 55.7 reading, from 52.6 in September, ISM said in its monthly report. Figures of more than 50 indicate expansion, while below that show contraction. “The manufacturing sector grew for the third consecutive month in October, and the rate of growth is the highest since April 2006,” said Norbert Ore, chair of ISM’s business survey committee. “Overall, it appears that inventories are balanced and that manufacturing is in a sustainable recovery mode,” he said. Production jumped 7.6 points to a 63.3 reading, while employment rose 6.9 points to 53.1. ISM’s factory index measures manufacturing components of the economy.
|
Industry News