Leaders in the trucking industry are closely monitoring how the enforcement of English language proficiency rules will affect the freight sector.
In April, President Donald Trump directed federal transportation officials to classify violations related to English proficiency as out-of-service offenses. Following this, the Federal Motor Carrier Safety Administration provided guidance in May on how officials should conduct roadside inspections when there’s a suspicion that a driver may not meet language standards.
The implications of this new administration oversight on English language proficiency (ELP) standards are still unfolding. While some industry leaders believe stricter enforcement of ELP standards could reduce excess market capacity, others argue that it’s premature to make judgments, and some think the perceived effects are exaggerated.
Covenant Logistics: David Parker, Chairman and CEO
Parker noted in a July 23 filing, “We believe that market capacity is gradually diminishing due to larger firms downsizing fleets, smaller firms going bankrupt, and enforcement of ELP and B-1 visa regulations. We are hopeful that demand will rise as excess inventories decrease, and as changes in tax and monetary policies take effect.”
JB Hunt Transport Services: Nicholas Hobbs, COO and President
During a July 15 Q2 earnings call, Hobbs remarked, “There has been significant discussion regarding various trucking regulations, including English proficiency and the misuse of B-1 visas. While we can only speculate on the potential impact on J.B. Hunt’s capacity, we don’t expect any substantial effects.”
Marten Transport: Randolph Marten, Executive Chairman
Marten stated in a Q2 earnings release on July 16, “Our focus is on mitigating impacts from freight market fluctuations and global economic volatility. We believe that increased enforcement of ELP and B-1 regulations will lead to additional capacity exits, thereby fostering profitable growth opportunities.”
Schneider National: James Filter, EVP and Group President
Filter expressed on a July 31 Q2 earnings call, “With the enforcement of language proficiency regulations, we recognize that this will lead to a gradual decrease in market capacity. Carriers are proactively removing non-English speaking drivers and implementing language tests for new hires, which contributes significantly to capacity reduction.”
TFI International: Alain Bédard, President and CEO
Bédard commented during a Q2 earnings call on July 28, “The English proficiency standards seem to mainly affect truckload operations. While there’s potential for some impact, I wouldn’t say we’ve observed any significant changes thus far.”
Werner Enterprises: Derek Leathers, Chairman and CEO
Leathers mentioned on July 29 during a Q2 earnings call, “We don’t anticipate any impacts on our fleet since we’ve maintained our English proficiency testing even during the previous lack of enforcement. We consider it essential for safety. Enforcement is increasing, and while we’ve seen over 1,500 out-of-service violations related to ELP, the enforcement varies by state and has been slower than expected.”
