Putting a Price on New Hours Rules

June 12, 2000 9:05 AM, EDT

WASHINGTON — Productivity improvements in the logistics and trucking industries generated by computers and use of the Internet may be imperiled by the Transportation Department’s hour-of-service rules, according to a leading industry analyst.

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In his annual “State of Logistics” report, Robert V. Delaney said June 5 that the DOT’s proposal could cost American business an extra $175 billion for transportation over three years. He divided those three-year cost estimates into three general categories:

• $100 billion for investment in extra inventory.
• $50 billion spent on additional trucking services.
• $25 billion for carrying costs on the extra inventory.

He lumped the hours proposal together with a statement from the Environmental Protection Agency on the sulfur content of diesel fuel as possible causes for increases in transportation costs. EPA agency is trying to significantly reduce the amount of sulfur in diesel, which industry observers believe will force the price of fuel higher.

Delaney takes such issues almost personally. A logistics analyst, he annually presents information on the topic in a forum sponsored by the two companies with which he is affiliated, Cass Information Systems and ProLogis.

For the full story, see the June 12 print edition of Transport Topics. Subscribe today.