179,000 CDLs risk being downgraded or revoked for drug or alcohol violations

November 14, 2024

179,000 CDLs risk being downgraded or revoked for drug or alcohol violations

(Source: FMCSA Clearinghouse)

CDL downgrades and revocations are on the horizon as the Federal Motor Carrier Safety Administration’s Commercial Driver’s License Drug and Alcohol Clearinghouse Phase 2 goes into effect on Monday. The Clearinghouse Phase 2, also called The Second Clearinghouse Rule, is the CDL downgrade portion. The first rule set up the requirements that employers both submit drug and alcohol violations and annually query each driver they employ.

The rule going into effect is estimated to impact 179,000 CDL or commercial learner’s permit drivers who have been placed on prohibited status, which means the holder had a drug and alcohol program violation reported to the Clearinghouse. The concerning impact on trucking capacity comes from the return-to-duty (RTD) process, which 136,224 drivers have not started. They will be unable to operate a commercial motor vehicle until they complete the process.

The impact of the Phase 2 rule on driver availability may be less dire than the numbers suggest. Matt Cole of Overdrive wrote, “In reality, though, the industry shouldn’t be losing near that many active drivers, as those in the Clearinghouse are already prohibited from driving. The exception: cases where motor carriers aren’t running the required annual queries and, therefore, aren’t aware a driver is in the Clearinghouse.”

Brandon Wiseman, president of Trucksafe Consulting, told Overdrive, “Now this will be an additional check on the system, because [carriers are] also supposed to be running motor vehicle reports on all of their drivers, at least annually,” he said. “And now if those drivers are also losing their CDLs because of these drug and alcohol testing violations, even the carriers that haven’t been using the Clearinghouse should see the problem now, as they’re running their MVRs.”

OOIDA truck parking survey polls drivers on paid parking

(Photo: Jim Allen/FreightWaves)

A recent survey by the OOIDA Foundation, a nonprofit focused on research on economic and safety issues impacting motor carriers, found that while paid truck parking options are increasing, most drivers are not willing to pay for it. Fifty-eight percent of drivers surveyed do not use paid parking, the main reason being costs are too high while freight rates are too low. Driver comments ranged from refusing to pay on principle to not needing paid parking because they are home often from regional or local runs.

Analysts also questioned the value of paid parking compared to alternatives. During an interview on Land Line Now, Charles Sperry, a research analyst at the OOIDA Foundation, said, “Largely, it appears that people are trying to more take advantage of the situation by putting forward paid parking. So if you don’t really have any other alternative, you’re kind of forced into it rather than attempting to make paid parking actually attractive by providing goods and services that make it worth your money.”

Paid parking costs and utilization came up as well. Tyson Fisher of Land Line writes, “A lot of space being used for paid truck parking is going unused. Nearly half of truck drivers said they “often” or “always” see empty paid parking spots. Less than a quarter indicated they “never” or “rarely” see paid parking spaces going unused.” When drivers do pay for truck parking, survey respondents paid for spots about five to six times per month on average, spending around $18 each time.

Reimbursement was cited as another pain point. Fisher added, “Among respondents who are company drivers or leased-on owner-operators, 86% indicated the carrier does not pay them for money spent on truck parking. About half of company drivers get reimbursed, but nearly all (98%) of leased-on owner-operators do not get that money back.”

Six in 10 drivers said they have to shut down early due to concerns about not finding a parking spot. This equated to drivers losing on average nine hours of drive time each week. Experience was another factor, with 75% of respondents having knowledge about their area. For those less experienced or crushed for time, Land Line adds, “Some drivers said they do not plan and just drive and hope for the best.”

FreightWaves SONAR spotlight: Spot linehaul rates reach highest level since February

(Source: FreightWaves SONAR)

Summary: Spot market conditions for carriers continue to rapidly improve against a backdrop of ongoing diesel price declines. The rapid surge in spot market linehaul rates began in November and has reached its highest level since Feb 1. In the past week, the FreightWaves National Truckload Index (Linehaul Only) rose 8 cents per mile from $1.74 on Nov. 4 to $1.82. Compared to this time last month, the NTIL is up 15 cents per mile from $1.67 on Oct. 12. The NTIL is calculated as the average daily spot rate subtracted from the estimated cost of fuel, which is calculated based on the average retail price of diesel fuel divided by an estimated fuel efficiency of 6.5 miles per gallon. The formula is NTID – (DTS.USA/6.5mpg).

Besides the uptick in spot linehaul rates, an added boost for cash-strapped carriers is the ongoing declines in the average retail price paid for diesel at the pump. Compared to the Department of Energy weekly reported retail average, the Diesel Truck Stop (DTS) Actual Price per Gallon is the average price of diesel fuel purchased in a given market. In the past week, DTS fell 1 cent per gallon from $3.60 on Nov. 5 to $3.59. Month over month saw more improvement, with DTS falling 6 cents a gallon from $3.65 to $3.59. The distinction is worth noting, as the DOE reports posted prices while DTS reports actual prices paid via fuel transactions.

An observer could note that the sudden surge in linehaul rates would be accelerated by the reduction in the price paid for diesel. Looking at all-in dry van spot rates, without a fuel surcharge removed, a similar trend is observed. The FreightWaves National Truckload Index 7-Day Average surged 9 cents a mile all-in w/w from $2.29 on Nov. 4 to $2.38. The NTI is now at its highest level since July 7. Zooming further out, the NTI is up 15 cents a mile m/m and 16 cents a mile compared to this time last year, when the NTI was at $2.22 on Nov. 12, 2023.

Turning back to the rapid improvement in spot market dry van rates, $1.90 appears to be the key value to watch. In a post on the X platform, FreightWaves Founder and CEO Craig Fuller said, “Trucking spot rates are on the verge of breaking an important technical level. We’ve seen the market test $1.90 and fail to sustain those levels in the past.” Fuller adds that if NTIL breaks though that level and continues to surge, it would, “reinforce our view of a recovery.”