[Music] good morning everyone welcome into this Tuesday check call Community update I'm Isa Buchanan here with the lovely Mar o Connell Mary as always it's a pleasure for having you here with us ah thank you guys so much it's always a blast to start my Tuesdays with you guys it's kind of the best of both world that's the sign of an impending good taco coming this this evening and it's crazy that you mentioned that because I've got Tacos on my mind for lunch a little later so you know I can combine tacos with check call
and it's just going to be a perfect day and people can watch that call a little later but before we get to how they can watch the episode Mary there was this new ruling from the FMCSA which could have very big impacts on drivers moving forward can you kind of go into a little bit of detail about this new ruling yeah no problem so we this week on check call we do our little market update if you will and we have the one and only David Spencer around and you know we do break down this
rule a little bit more and really its impact that it could have on the transportation market so what it is is the FMCSA published a new rule it's been like two or three years in the making and as of but it's actually going into effect as of November 18th and it what happens is if you are a driver that has a prohibited status on their license um you can't renew or upgrade or do anything with your CDL so basically if you have failed a drug or alcohol test um which for the alcohol it's going to
be a blood alcohol content of 0.04 or higher you are immediately removed from service and your CDL is stripped within 60 days so it's not like you get like a it's not like you get a mark on your license like a passenger car you straight up lose your ability to have a class A CDL and drive a semi within 6 days of the accident so that is a pretty significant thing and that actually goes into effect for anyone that's currently in the clearing house with a prohibited status on their license it's not necessarily like oh
from November 18th moving forward anyone that this happens to this is them like there's no one being grandfathered in it's just you you it either happens or it doesn't um but that being said if you are someone that if or if there is a driver that is impacted by this um there is still that return to duty process they can complete and that does require um going through a do qualified substance abuse professional you have to complete a treatment or education plan you have to pass a return to duty test and then o over the
next 12 months uh that person is subject to six unannounced follow-up tests um and those are just kind of sporadically through the next year and so at that point in time you can get that status removed from your license and be a full full-fledged CDL Class A uh license holder again and Mary what could some of the repercussions from this new rule be I mean this could impact I'm not sure an exact number but I would assume a lot of drivers that have probably had issues with this before so what are some of the repercussions
that we could possibly see from this rule so there's not really like a there's a bunch of conflicting information on how many drivers this is going to be impacted by um but the consensus seems to be that it's going to be over 150 to 150,000 drivers um which is a lot I'm not going to lie um and so it's just kind of hard to know for sure how many have that prohibited status in the Clearing House um that but this most common consensus is that it's around 150,000 um and so that is not ideal for
a trucking a trucking Market especially heading into peak season although peak season is kind of expected to be not necessarily muted but not not what we expect for it especially since we've seen a lot of retailers pull their Freight forward and other stuff like that so um but yeah it's definitely going to take some capacity from the market the good news is is that you know some of your super large carriers your Enterprise carriers they aren't going to ideally or at least in theory they aren't going to feel as many of the repercussions of this
because typically they have um stringent safety standards that any driver that automatically comes in with a prohibited or has an incident that causes them to get this status on their license more often than not that they're going to be fired from a pretty safety heavy company right off the bat um it's going to really affect some of your midsized carriers and some of your smaller carriers or those that you know don't necessarily I don't say they don't Pride themselves on safety but those who are a little more LAX and are willing to overlook some things
when it comes to some of that safety history for that individual driver so it's definitely going to be an impact and it's going to take some of that capacity out of the market however we do still have a slight over supply of capacity so it could be what we need to level the market out um but unfortunately we really won't know the true far-reaching implications of it until um you know the middle of November all right Mary you kind of hinted at it a little bit with capacity in the market right now where are we
at in the Freight Market it's Q4 looking ahead to Q5 or Q5 to 2020 where are we at with the freight market right now so I mean looked Isaiah who knows but no it's we're kind of seeing as like a collective um we're kind of seeing that it's we're starting to see that rebound that tail swing that positioning for a more traditional year in 2025 so um it's not Rock Bottom we've already hit rock bottom so we're just continuing to see some of those Trends move upward especially in the dry van Market the one um
Unique Kind of call out is that uh the reer reer outbound tender rejections are abnormally high for this time of the year um and we're not really sure if that's a thing if that's related to some of the natural disasters we have happening in the Southeast or um if it's the tail end of the north the northern Us's uh produce season or who knows a whole bunch of reasons but we are seeing some elevated volumes um or elevated rejections there in the reer sector or the reer side um so that could lead to some higher
spot rates for Reaper carriers which is much appreciated from those carriers less so from the shippers but I think uh rounding out the year we're going to kind of see more of the same uh to put ourselves in a really nice position for 2025 to kind of get that return to normaly that level set that everybody has been desperately clamoring for now does that include the recovery from some of the low points that we've had here pretty recently with the Port strike and then two hurricanes hitting uh down near Florida and coming up the coast
look I'm not going to lie the end of SE the beginning of October was really rough guys um but uh we definitely did not need all of that to happen at that exact point in time but I do think that as we kind of move into the rest of the year and early of next year we will OBS we will kind of look at the the beginning of October with like a fondness in the rearview mirror maybe not a fondness but definitely um definitely remembering uh because we are going to see some of those disruptions
around Eastern or I'm sorry Western North Carolina Eastern Tennessee we are going to see some of those disruptions continue into 2025 as some of those major interstates uh struggle to get rebuilt and then possibly even to 2026 is some of those more Community roads are also trying to get rebuilt as well um you know we uh the biggest kind of barom I want to say barometer but one of the things to watch is that you know um our pharmaceutical supply chain we have a shortage of IV saline bags now because one of the major plants
for that was uh unfortunately affected by Hurricane Helen so uh but they are expected to be kind of operational Again by the end of the year so it's really going to T kind of be a Mad Dash to the end of the year to just start the start 2025 off on the right foot because we're going to have so many of those um businesses that were impacted up and running again at the beginning of the year and then we're also going to have some of that um because of all the retailers that were pulling their
Freight forward to avoid the Port strike that really actually took away some of that oh my gosh I need to hurry up and get this going uh from the holiday season that we typically see so it is expected to be a slightly calmer uh retail peak season but the overall that is going to help everyone kind of get caught up and start 202 five off on the right foot the Freight Market is just like me Mary once I get to a new year new year new me what happened last year doesn't matter anymore we're leaving
it in the past and we're moving keeping our head going through or keeping our eyes focused on the windshield and not the rear view mirror you know so we'll just do our best to keep moving forward as we go along into 2025 right absolutely it's just uh you know what happened in the past is is a lesson we just got to keep pushing forward because we can't change anything about it that's right Mary and if people want to check out check call this afternoon how can they do that well uh first you're going to grab
your tacos and then you're going to spend your lunchtime hanging out with us over there on check call it comes out at 12:30 Eastern uh today and then it will uh then the newsletter comes out at 2 p p.m. Eastern straight to your inbox for a little uh for a little post lunch like jolt awake so that way you know that little afternoon slump doesn't come for you you're going they're going to be so hyped after watching cck call Mary that there will be no afternoon slump even if they are having tacos for lunch as
well Mary thank you so much for joining us today for this community update we will talk to you again on Friday awesome thanks guys [Music]
