1. Trucking: Issues and Policy Challenges Kristen Monaco Department of Economics California State University Long Beach

2. Issues Capacity Capacity Hours of Service Hours of Service Driver Shortage? Driver Shortage? Other Labor Issues Other Labor Issues 2007 Engines 2007 Engines Tolls Tolls

3. Trends in Total Miles (measured in billions) Source: calculations from Vehicle Inventory and Use Survey

4. Number of Heavy Freight Vehicles on the Road: 1977-1997 Source: calculations from Vehicle Inventory and Use Survey

5. Hours of Service Regulations “Old” HOS Regulations 15 hours total work time 15 hours total work time 10 hours driving 10 hours driving 8 hour “rest break” 8 hour “rest break” 60 hours in 7 days 60 hours in 7 days “New” HOS Regulations 14 hours total work time 14 hours total work time 11 hours driving 11 hours driving 10 hour “rest break” 10 hour “rest break” 60 hours in 7 days 60 hours in 7 days 34 hour “restart” 34 hour “restart”

6. Hours of Service Regulations – Policy Issues and Challenges Perceived Benefits Reduce idle time for drivers Reduce idle time for drivers 34 hour restart can increase productivity 34 hour restart can increase productivityProblems Lack of flexibility in 14 hour “hard stop” Lack of flexibility in 14 hour “hard stop” 34 hour restart can compromise safety 34 hour restart can compromise safety Not fully achieving 24 hour cycle Not fully achieving 24 hour cycle

7. Driver Shortage Evidence of shortage versus a churning problem? Evidence of shortage versus a churning problem? What industries/occupations provide in and out migration for trucking? What industries/occupations provide in and out migration for trucking?

8. Trends in Number of Drivers Source: calculations from Current Population Survey

9. Hourly Earnings of Drivers (measured in 2000 dollars) Source: calculations from the Current Population Survey

10. Drayage at the Ports of LA and Long Beach – Wages and Hours of Drivers Hours Mean: 11.6 hours per day Mean: 11.6 hours per day Approximately 50-60% is waiting time Approximately 50-60% is waiting timeWages 87% are owner-operators 87% are owner-operators Mean income net of truck expenses in 2003: $29,903 Mean income net of truck expenses in 2003: $29,903 Median income: $25,000 Median income: $25,000

11. Port Drayage and Efficient Port Operations Will the number of available drivers increase without an increase in wages? Will the number of available drivers increase without an increase in wages? What is the relationship between current port operations and safety? What is the relationship between current port operations and safety? What will happen with a move to 24 hour operations? What will happen with a move to 24 hour operations?