Friday, December 23, 2011

Retailers React to Flawed DOT Hours of Service Rule

Arlington, VA –
The Retail Industry Leaders Association (RILA) reacted to a final hours of service rule from the U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) that will increase highway congestion and increase the cost of moving goods via trucks.
“Rather than encouraging greater efficiency, the new hours-of-service regulations will increase transportation costs, congestion and pollution by funneling more trucks onto the road at peak driving times,” said Kelly Kolb, vice president for government relations.
Since 2003, the industry has relied on the existing hours-of-service regulations to optimize just-in-time supply chains required in today’s growing global economy. The ability to transport products to stores and distribution centers in a timely manner is essential to the continued health of the retail sector.
According to a U.S. Department of Transportation (DOT) study, traffic congestion costs the U.S. economy $87.2 billion each year, with 4.2 billion hours and 2.8 billion gallons of fuel spent sitting in traffic.
“Supply chain optimization is the bread and butter of America’s most successful retailers. Their ability to move goods efficiently has changed the retail landscape and benefited consumers by reducing prices and increasing product assortments. The new hours of service rule will upend the advances in efficiency made over the past decade,” said Kolb.

RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad

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