New HOS rules causing rise in transportation costs, group finds

A recent survey of 351 logistics managers conducted by Reed Research Group found that 75 percent believe transportation costs are rising as a result of the new trucking hours-of-service regulations, and they believe those costs are rising by an average of 13.5 percent, the Jacksonville Business Journal reported.

The research company reported that 66 percent of logistics managers surveyed said carriers are imposing more surcharges and higher surcharges for load detention or multiple stops.

Meanwhile, 57 percent of respondents reported being told that deliveries will take longer as a result of the HOS regulations, with 44 percent saying they've been receiving more late deliveries since the new rules took effect.

As a result of the change, 55 percent said their shipping practices have been affected. Among those who said they've modified the way they do business, 29 percent said they're switching from full truckloads to rail and intermodal.

In addition to using more rail service, 35 percent said they're using more dedicated contract carriers and 33 percent said they've switched from full truckload carriers to LTL carriers.

Third-party logistics providers are also being relied on more to help shippers reduce costs, the research group found. According to the survey, 32 percent said they're using more transportation brokers to leverage their relationships with multiple carriers.