Impact of the English Language Proficiency Rule on Trucking Capacity
The newly implemented English Language Proficiency (ELP) rule is poised to significantly impact trucking capacity.
Background on Regulations
Over the past ten years, major truckload carriers have adapted to regulations such as the ELD mandate and the Drug and Alcohol Clearinghouse, which have aimed to restrict market capacity. However, the effects of these regulations have generally been temporary. The ELP mandate, established by a Department of Transportation (DOT) Executive Order, requires commercial drivers to prove their English language skills or face being placed out of service (OOS). According to FreightWaves, approximately 10% of Commercial Driver’s License (CDL) holders may lack adequate proficiency based on insights from insurance executives.
Enforcement and Compliance
Will trucking companies comply with this enforcement? DOT and law enforcement officials can impose OOS violations on drivers who fail to meet proficiency standards, which serves as a strong deterrent. Drivers or vehicles deemed unsafe—often due to hours-of-service violations, mechanical issues, improper load securing, or impaired driving—already face OOS violations. Now, English language proficiency has been added to the list of reasons for such violations. These infractions remain on a driver’s Pre-Employment Screening Program (PSP) report for three years and impact a carrier’s Compliance, Safety, Accountability (CSA) score for two years. Poor CSA scores can drive up insurance costs and affect relationships with shippers, leading carriers to avoid risking these violations.
Existing Regulations Strengthened
While the ELP mandate does not introduce new laws—since English proficiency requirements have existed—it does empower the DOT and law enforcement to enforce compliance strictly. This marks a shift from previous guidance under the Obama Administration, which overlooked such violations. Similar to a credit score, a CSA score affects insurance rates and partnerships with shippers. Shippers often evaluate CSA scores during Request for Proposals (RFPs) and onboarding processes, prioritizing carriers with stronger scores and often bypassing those with declining performance by diverting freight to safer options or excluding them from contracts altogether.
Consequences for Non-Compliant Carriers
Carriers that fail to comply could face serious repercussions. A driver with a load who is placed OOS cannot transport cargo until they meet compliance requirements, which jeopardizes service and increases the risk of cargo theft from idle loads. Brokers who fail to account for such non-compliant carriers may encounter operational disruptions, encouraging shippers to steer clear of them to safeguard their cargo and maintain reliability.
Current Market Capacity Status
As it stands, trucking capacity is nearly balanced with demand, with outbound tender rejection rates at 6.77%, despite the current weak demand for truckload services.
