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New USDOT Rules Predicted to Impact Employee Relocations

February 11, 2014 2:14:00 PM EST | By: Michelle Dopps

uncertainity signA number of new and old issues are converging to make this year potentially one of the most challenging for the moving industry overall and for California moves in particular. Companies will need to plan ahead and to initiate the relocation process early to decrease the chance of delays associated with moving household goods.

Nationwide, the USDOT has reduced the number of hours that a driver may spend “in service.” This is of particular concern in the moving industry because the time a driver spends packing and loading counts as “in service.” Household good drivers will reach their 11 hour limit faster, resulting in less distance covered as compared to the other types of hauling where drivers are loaded in an hour and able to cover much farther distances in the remaining time.

In addition to national regulation changes, on January 1, 2014 the California Air Resource Board (CARB), in conjunction with Federal Air Standard regulations, phased out older engine models. This makes it illegal to operate non-compliant trucks in the state without either a $15,000-$20,000 modification or purchasing a newer compliant vehicle.

Bottom line is that this new regulation means you cannot drive a truck into California unless it is a new model or has been modified. Companies not based in the state may not want to spend the money on the modification so it means fewer companies are available to do moves in California.

You should also note, that should a moving company decide to “risk it” with shipments, the relocating employee and the company are at risk for a fine - not just the driver. These new restrictions coupled with the ongoing overall driver shortage and increased corporate volume means that securing space on a truck will be increasingly difficult.

What you can do:

  • Book your move as early as possible to secure a space

  • Communicate the need to be flexible to relocating employees

  • Consider allowing “pick and holds”

  • Work only with reputable relocation companies who have the network and suppliers in place that are compliant to the new regulations

 

Source: Courtesy of Ace Relocation Systems, Inc

 

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Topics: global mobility, employee relocation, relocating employees

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