Many businesses across the country rely on trucking companies to deliver their products on time. Delivering freight or products by road is still the most common way to transport goods, which keeps this industry growing.
However, a new California law could leave many trucking companies facing new challenges and risks.
New law to regulate carbon emissions
California has established new regulations to reduce carbon emissions. This regulation includes a few requirements, such as:
- All trucks larger than an F-450 must pass the emissions test from January 2020 to 2023;
- All trucks must have a special filter that removes most toxic particles from their emissions; and
- All trucks must have an engine from 2010 or later.
If the trucks do not meet these regulations, they cannot register with the DMV or drive on the road.
Many trucking companies are concerned
This new regulation is causing concern among many trucking companies who operate in or through California, including, of course, increased operation costs. Common costs include:
- Between $80,000 and $150,000 for a new truck;
- Each driver’s pay by each mile they drive;
- An average of $10,000 for insurance, per truck;
- Varying costs for repairs or new equipment each year; and
- Variable marketing costs to get business.
Paying for newer engines and special filters by the deadline in 2020, on top of these annual costs, is being balanced against the cost of not complying with the new regulations, with either or both alternatives putting their company at financial risk.
How can trucking companies reduce costs to comply with this new rule?
Even the smallest internal adjustments might help trucking companies navigate these new regulations successfully, such as:
- Practice regular maintenance to lower repair or replacement costs;
- Revisit the overall budget to determine which costs can be eliminated;
- Reconsider routes to increase efficiency; and
- Ensure all drivers follow safety protocols.