The poultry meat industry is heavily dependent on road transport for ingredients and finished product. Although some companies operate their own fleets, there is considerable reliance on the trucking industry for inputs and distribution.
Government regulations impact both efficiency and profitability and the important issues to be confronted in 2024 include:
- A proposed rule requiring a distinction between independent contractors and employees. Trucking companies will be required to prove that drivers are in fact independent contractors and not functioning as workers but under a differential designation.
- The Environmental Protection Agency is expected to issue upgraded emission standards for heavy-duty vehicles beginning in 2027. The Administration tilt is towards electric- powered semis that will add to capital cost.
- It is evident that there is a shortage of truck parking. The Administration intends spending $755 million in grants for this purpose although appropriations are currently in limbo in Congress.
- The Federal Motor Carrier Safety Administration is delaying action on broker transparency. Despite petitions for a rule filed in 2020 by the Owner-Operator Independent Drivers Association, the FMCSA has yet to deliver on a promise of a rule by June of 2023 and has pushed back the agenda to October 2024. This has resulted in considerable frustration and financial loss among independent owner-operators.
- The proposed compliance, safety and accountability (CSA) measurements system has yet to be finalized by the FMCSA. The final CSA will include crash preventability determination and a database. Other aspects of safety include speed limits, automatic emergency braking and the possible introduction of automated driving systems.
- Guidelines have yet to be established for the use of drugs including hair sampling as an alternative to body fluids.
It is evident that rulemaking moves at a slow pace especially with contention among the stakeholders, intense lobbying, inactivity by Congress and the approaching General Election.