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HOS Changes Coming? One Way It Can Impact Small Carriers’ Profitability
Yahoo Finance· 2025-09-24 13:39
Core Viewpoint - The Department of Transportation is considering pilot programs to provide more flexibility in Hours of Service (HOS) regulations, which could positively impact owner-operators and small fleet operators by potentially increasing profit margins through reduced downtime and more efficient routing [1][3]. Proposed Changes - The proposed pilot programs aim to allow drivers greater control over their on-duty hours, reduce wasted wait times, and enhance route efficiency while adhering to HOS constraints [3]. Potential Benefits for Owner-Operators - The flexibility in HOS regulations could lead to higher profit margins by minimizing downtime and maximizing revenue per mile or load [4]. Example Scenarios - **Less Downtime, More Revenue**: Current regulations require mandatory rest after driving for 11 hours, often leading to wasted time in rest areas or traffic. The proposed flexibility could allow drivers to shift part of their mandatory rest to off-duty time, potentially increasing annual earnings by $4,500 to $5,500 by reducing wait times [5][6]. - **Adverse Weather/Traffic Delays**: The flexibility could enable drivers to adjust their rest periods during adverse conditions, allowing them to salvage trips that would otherwise be lost due to delays. This includes more flexible break times and the possibility of counting waiting time differently, which could prevent significant lost miles and revenue [7][9]. Financial Impact - If a driver loses 1 hour per week due to waiting for resets or breaks, this equates to approximately 52 hours per year, translating to about 3,120 lost miles at an average pay of $2.10 per mile, resulting in an annual loss of around $6,552 [8].