Hours of Service
On December 29, 2010, the Federal Motor Carrier’s Safety Administration, a division of the Department of Transportation, proposed changes to the Hours of Service (HOS) which govern the hours commercial drivers can be on the road and on duty. Among other things, the changes propose to modify the 34-hour restart to include two periods between midnight and 6 a.m.; consider the possibility of limiting daily driving time to 10 hours from the current 11; and release drivers from duty after 14 consecutive hours.
The proposal published in the Federal Register had a public comment period that closed March 4, 2011. United Fresh, working in conjunction with the Supply Chain and Logistics Council, prepared comments to this proposed rule. United Fresh urged the FMSCA to focus on compliance with the current rules of service rather then implement new rules which would undermine productivity and business viability with no clear indication they would make our nation’s highways safer. We expect a final rule to be published around July 26 of this year.
Mexican Cross-Border Trucking Program
Under the Omnibus Appropriations Act of 2009, Congress blocked funding for the Mexican Cross-Border Truck Safety Program. This was a pilot program allowing a small number of Mexican trucks to enter the U.S. while operating in international commerce. In response to the blocking of funds for the program, the Mexican government placed tariffs on U.S. products, including some produce, totaling more than $2 billion. In 2010, Congress removed the prohibition on funding allowing the Administration to move forward with a new pilot program. Since that time Administration officials have been working to develop a program that would reconstitute the pilot program. This culminated in an agreement in March by President Obama and Mexican President Calderon in which they announced a proposal for a pilot program that provides a path forward to resume cross-border trucking and end the retaliatory tariffs. The U.S. Federal Motor Carrier Safety Administration (FMCSA) on April 13 published the full pilot program proposal for public comment in the Federal Register. Specifically, the proposed pilot program:
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Would be three years in duration
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Would require Mexican-domiciled motor carriers to complete a 3-stage process to qualify for permanent operating authority
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Would not grant operating authority to Mexican-domiciled motor carrierswithout reciprocity for U.S.-domiciled motor carriers
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Would require all Mexican-domiciled carriers and drivers to comply with all applicable U.S. laws
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Would require applicant motor carriers and drivers to pass a Department of Homeland Security screening
The purpose of the pilot program is to evaluate the safety performance of Mexico domiciled carriers. The public comment period ends May 13. United Fresh initiated an Action Alert for members to submit positive comments on this proposed rule as we expect stiff opposition from the unions who have adamantly opposed this program because they claim it impacts jobs in the United States. In addition, United Fresh will be submitting formal comments prior to the May 13 deadline. Finally, United Fresh will continue to work with the Alliance to Save U.S. Jobs which has spearheaded the effort around the cross-border trucking pilot program.
Highway Transportation Reauthorization
Because so much of fresh produce is shipped by commercial vehicles, the condition of our nation’s highway is of great importance to our industry. At the federal level, the main legislative package for funding construction, improvements and safety initiatives on federal highways is the Highway Transportation Reauthorization legislation. The most recent version of the Act expired in 2009, but has been extended by Congress. The current extension is set to expire on September 30, 2011. Key issues within the context of reauthorization for the produce industry include border crossings, truck weight and length requirements, driver safety, truck inspections and permits, uniform rules and environmental requirements such as average miles/gallon mandates.
As with many legislative proposals, a significant issue slowing consideration of reauthorization is the level of available funding. Chairman John Mica of Florida who chairs the House Transportation and Infrastructure Committee has said that, with respect to funding highway programs, Congress will have to do less with more. Both Chairman Mica and other congressional leaders have stated their intention to pass a reauthorization by the end of 2011. While there have been hearings in Congress at the committee level regarding proposals for reauthorizing surface transportation programs, votes have not yet been scheduled. United Fresh will work to ensure that produce industry needs are adequately addressed as Congress shapes a reauthorization bill.
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