Carriers are concerned about CSA 2010 regulations, but they have found some of their shippers to be concerned about CSA scores as well, according to Transport Capital Partners' Second Quarter 2012 Business Expectations Survey.
A little more than 72% of carriers surveyed say that some of their customers are concerned about CSA scores. Only 21% say customers are not concerned, and 6% said all of their customers are concerned.
"The integrity of the data and predictive values has forced negative response from carriers' organizations, showing a growing concern amongst both carriers and shippers to this latest regulation," says Richard Mikes, a TCP partner.
"CSA continues to be a major concern for the carriers, especially over the last few months as FMCSA has inadequately responded to the concerns of carriers," says Lana Batts, TCP partner.
Last quarter, TCP found that 65% of carriers surveyed are using three or more methods to comply with the regulations. This was significantly higher than two years ago when TCP found that 50% of truckload carriers were unprepared for CSA 2010 regulations.
While 33% of the larger carries surveyed are using electronic logs on all their trucks, more than 55% of the smaller carriers are not using e-logs. This disparity indicates just how difficult FMCSA's job will be in using e-logs to enforce hours-of-service regulations using electronics.
"Larger carriers have been more rapid in adoption and appear equipped to implement required training of drivers and support staff through their operations," Batts says. "For smaller carriers, these changes can be much more of a burden."
Cost of implementing CSA regulations is also a concern for carriers. Seventy-five percent of carriers surveyed indicate that the cost of compliance per driver has been $500 or more, and 35% indicate the costs are over $1,000 per driver per year year.
"Carriers are clearly frustrated with the level of costs and complexity emanating from the feds, while at the same time half of them tell us they are not getting adequate returns, and face escalating driver costs and an uncertain economy," Mikes says.
TCP is a firm providing advisory services to the transportation industry, including mergers and acquisitions. Its Business Expectation Survey asks trucking company executives core questions every quarter on recent rate trends, future volume and rate expectations and interest in buying or selling their firms in the future.