This post is part of a series sponsored by IAT Insurance Group.
Many of the major issues facing the trucking industry this year all boil down to one major cause: the economy.(1)
In 2022, operating costs in the trucking industry reached a 15-year high, with operating costs per truck reaching $2.251 per mile, or an average of $90.78 per hour.(2) Although the driver shortage has declined for the second year in a row, reaching around 60,000 in the second half of 2023, the fundamental issues driving this market remain.(3) Long working hours, competitive pay, and driver qualifications remain top concerns, and with fewer employment opportunities for drivers post-pandemic, funding to improve these areas is lacking.
These trends are a compelling reason for fleet owners to seek innovative ways to reduce costs. However, concerns are raised when the wrong corner is cut off.
To overcome this burden and ease the hiring process, more and more fleets are purchasing or using trucks that fall below the weight standards that require operators to hold a commercial driver’s license (CDL). This expands the pool of drivers, typically available under the following conditions: Salary is low. Some vehicles may also do so to avoid many regulatory requirements for CDL-qualified drivers and their employers, including but not limited to drug and alcohol testing.
Some companies have gone so far as to modify their trucks to repurpose them and circumvent CDL compliance requirements.
Problems arise when the actual gross weight of the truck is not taken into account. Gross Vehicle Weight Rating (GVWR) is an important safety metric that describes the maximum payload weight of a vehicle or trailer, as determined by the manufacturer, and includes the weight of passengers and cargo as well as the vehicle itself.
According to federal regulations, an operator is not required to have a CDL if the vehicle’s GVWR is 26,000 pounds or less, but this exemption allows drivers who load their trucks in excess of the specified GVWR and do not have a CDL to Driving is not allowed. He needs a CDL to drive a truck that weighs more than 26,000 pounds.(Four) It doesn’t matter if the truck is designed for it or the weight it’s registered for.
The 26,000 pound rule creates a regulatory gray area, especially for moving and storage vehicles, where it is difficult to accurately determine the weight of goods being transported. In the event of an accident, even if it is not the vehicle’s fault, the vehicle may be held liable if the driver does not have the proper license.
5 Best Practices to Ensure Compliance with CDL Regulations
Navigating the regulations surrounding CDLs in tough economic times requires a balance between cost-cutting measures and responsible fleet management. Violations of CDL regulations can have serious long-term financial and reputational consequences. Follow her five best practices for prioritizing compliance to protect your fleet’s success.
- Be careful not to overload. Train your driver to be aware of the vehicle’s maximum payload within the limits of her GVW and CDL qualifications, and look for opportunities to obtain accurate weight readings from certified scales before setting off on a trip. Both the driver and the estimator responsible for estimating costs and mileage must take care during the initial assessment of the load. When estimating moving requirements, estimators must consider the number of trucks needed to safely transport goods without overloading.
- Weigh the truck early in the trip. Drivers are encouraged to weigh their trucks early in their trip, preferably on a certified scale located at a truck stop before arriving at a DOT weigh station. By being proactive, you can identify potential overloads before they reach the inspection point. Drivers can take the necessary steps to eliminate excess weight, such as redistributing the load or removing excess weight.
- If in doubt, send a second truck. Use caution if you are unsure whether the load is nearing its limit. If a roadside inspection occurs, authorities may request the dispatch of another truck to lighten the load. Although the cost of doing so is small, the potential consequences of non-compliance far outweigh the initial investment, including reputational damage, fines, and insurance issues.
- Invest in a truck that requires a CDL and hire a qualified driver. Although the initial cost is higher, legal issues and liability in the event of an accident are greatly reduced. The cost of purchasing a truck that requires a CDL is a wise investment to ensure compliance, safety, and protection from potential financial and reputational damage.
- Prioritize continuing education for drivers. Provide drivers with knowledge of legal restrictions, safety protocols, and the potential impact of violations on their record and vehicle reputation. Even if your truck is empty, know its actual weight with a full tank of fuel. Informed drivers are more likely to make responsible decisions on the road, contributing to a culture of compliance, safety and professionalism within the vehicle.
Contact a Loss Control Specialist
Have questions about how to reduce your risk? Email losscontroldirect@iatinsurance.com Please give me a chance to see the answers to your questions in future blogs.
Written by Jaden Tarreta and Christopher Parker
(1) American Transportation Research Institute”Critical Issues in the Trucking Industry – 2023October 2023.
(2) American Transportation Research Institute”Trucking Operating Cost Analysis: 2023 UpdateJune 2023.
(3) Trucking Dive”ATA reports that the shortage of reliable drivers has significantly reduced to 60,000 people,” October 16, 2023.
(Four) U.S. Department of Transportationcommercial motor vehicle driver” March 30, 2021.
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