The U.S. economy improved at a moderate pace in the six weeks ended in early July, but shippers and trucking industry contacts cited caution about a shortage of truck drivers and the new hours-of-service rule, the Federal Reserve reported.
The overall economy saw growth in manufacturing, construction and oil production, which boosted trucking services, the Fed said Wednesday in its latest “beige book” report, which it issues eight times a year.
The new HOS rule, with tighter restrictions on truck drivers’ work hours and rest-break requirements, took effect July 1.
Atlanta district contacts cited a rise in shipments of construction materials and chemicals but “capacity remained constrained due to driver shortages,” the Fed said.
“Of particular concern is how the new [HOS rule] . . . will play out,” the report said, citing Cleveland district contacts.
“The primary impact of HOS will be on the availability of drivers and the ability of shipping companies to effectively schedule those drivers. Potential reductions in capacity will tend to drive up shipping costs,” the report said.
The Fed has 12 districts. Wednesday’s report, which covered the period of May 25 through July 8, was prepared by the Federal Reserve Bank of St. Louis.
