New Environmental Trucking Rule

Historically, trucking operational costs fluctuate from time to time. There are numerous factors and variables that unexpectedly cost trucking companies more money. In turn, trucking companies might raise shipping rates to cover the losses. For example, a strike would cost trucking companies more money. That is why the trucking industry is rejoicing over the agreement reached between UPS and the International Brotherhood of Teamsters. This will prevent a strike and keep trucking costs down so that shippers can save money.

However, in 2013, there appears to be some unsettling situations on the horizon. Supply chains should keep a close eye on these issues, which could force shipping rates to skyrocket. One issue regards California, which is adopting new environmental policies for trucks. The new law, which is expected to start in 2013, mandates that all trucks install a diesel particulate filter on their exhaust pipes. California claims that this will help protect the environment and limit pollution. The problem is that the new filter costs between $15,000 and $40,000 per truck. If a trucking company does not adapt to the new rule changes, they could face staunch fines worth thousands of dollars possibly. And although this is just California adopting the new environmental rule, other states are also expected to adopt similar rules within the next 10-20 years.

The new environmental rules, while important, will rapidly increase expenses for trucking companies, and this might increase trucking freight rates across the US. So what should supply chains do? It is important to keep a close eye on the news to see the impact of the laws. You should also work with a trusted freight forwarder who can help keep your shipping costs low during the new rule changes.