FMCSA’s coronavirus emergency declaration is the right move

On the heels of President Trump late last week issuing a national declaration emergency in response to the frenetic impact of the coronavirus, the Department of Transportation’s (DOT) Federal Motor Carrier Safety Administration (FMCSA) said it has formally issued a national emergency declaration to provide motor carrier hours-of-service (HOS) regulatory relief in response to the coronavirus outbreak.

FMCSA officials said that this marks the first time the organization has issued nationwide HOS relief.

“Because of the decisive leadership of President Trump and Secretary Chao, this declaration will help America’s commercial drivers get these critical goods to impacted areas faster and more efficiently,” said FMCSA Acting Administrator Jim Mullen in a statement. “FMCSA is continuing to closely monitor the coronavirus outbreak and stands ready to use its authority to protect the health and safety of the American people.”

FMCSA officials said that this declaration provides for regulatory relief for commercial motor vehicle operations providing direct assistance supporting emergency relief efforts intended to meet immediate needs for:

• Medical supplies and equipment related to the testing, diagnosis and treatment of COVID-19;
• Supplies and equipment, including masks, gloves, hand sanitizer, soap and disinfectants, necessary for healthcare worker, patient and community safety, sanitation, and prevention of COVID-19 spread in communities;
• Food for emergency restocking of stores;
• Equipment, supplies and persons necessary for establishment and management of temporary housing and quarantine facilities related to COVID-19;
• Persons designated by Federal, State or local authorities for transport for medical, isolation or quarantine purposes; and
• Personnel to provide medical or other emergency services

FMCSA added that in order to ensure continue safety on the nation’s roadways, this “emergency declaration stipulates that once a driver has completed his or her delivery, the driver must receive a minimum of ten hours off duty if transporting property, and 8 hours if transporting passengers.” 

FMCSA acting chief Mullen said that this declaration should remain in effect until the termination of the emergency or until 11:39 PM ET on April 12, or whichever occurs sooner.

Ben Hartford, Robert W. Baird and Co. transportation analyst, wrote in a research note that this move by the FMCSA is likely, in part, a response to tightening supply conditions that have been experienced over the last few days.

“Several contacts with whom we have spoken in recent days have noted a strong uptick in spot truckload trends, attributable to 1) the surge in demand for consumer staples and destocking of inventory given preparation for extended shuttering of activities across the US in recent days, and 2) incremental reduction in supply,” commented Hartford. “In recent weeks, some small carriers have closed, citing sharply rising insurance premiums; while a couple contacts with whom we spoke believed driver availability was shrinking and could fall further given their own precautions taken during the broadening pandemic. Aggregate demand risk in 2Q20 and 2H20 is clearly growing, but we expect the supply chain disruptions related to this crisis are probably most directly beneficial, among surface transportation modes, to truckload fundamentals.

Hartford drove home a few key points that need to be kept in mind, especially as they relate to the intersection of freight transportation and logistics with general daily activities, with the latter experience quick change and upheaval at an incredibly rapid rate.

“This is an unprecedented period with still-unknowable impacts, making attempts to forecast future aggregate demand impossible,” wrote Hartford. “But we're confident about a couple of things: 1) we should remain focused on the crisis' human element; and 2) greater challenges still lie ahead. To that end, the cascading closures of events nationwide and globally in recent days will be essential in arresting the virus' outbreak. Meantime, the acuteness of the economic impact could exceed anything we've experienced in our lifetimes—including the 2008-09 financial crisis.”

These are all great points, make no mistake. What we are all going through, at the moment, likely transcends anything we have seen before, as it relates to a pandemic or outbreak or contagion or whatever one calls it. That said, FMCSA deserves credit issuing its emergency declaration. It is not only the smart thing to it; it is also the right thing to do. Newsroom Notes applauds this initiative. Lastly, but certainly not least, please be smart and safe out there for as long as it takes. We are all in this together at the end of the day.