CDL Downgrade Looming For 177k Truck Drivers: Act Now Before November 18th Deadline

On November 18, 2024, a major deadline set by the Federal Motor Carrier Safety Administration (FMCSA) could impact thousands of truck drivers across the U.S. The FMCSA requires all State Driver’s Licensing Agencies (SDLAs) to downgrade licenses for drivers marked with a “prohibited” status in the Drug & Alcohol Clearinghouse. If these drivers don’t act, they risk losing their commercial driving privileges, which could affect the trucking industry by reducing the pool of available drivers.

What Is the FMCSA Clearinghouse?

The FMCSA Drug & Alcohol Clearinghouse is a system that tracks drug and alcohol violations by commercial drivers. It allows employers, licensing agencies, and law enforcement to see a driver’s record when it comes to drug and alcohol testing.

Since the Clearinghouse began in 2019, it has collected thousands of violations, including:

• Positive drug or alcohol tests
• Refusals to test
• Other violations related to drug and alcohol use

When a driver has a violation, they receive a “prohibited” status in the Clearinghouse. This status bars them from driving commercially until they complete the Return-to-Duty (RTD) process.

Steps in the Return-to-Duty (RTD) Process

To regain their driving privileges, drivers with violations must complete the RTD process, which involves:

1. Assessment by a Substance Abuse Professional (SAP): Drivers need to meet with a professional who will evaluate their case.
2. Education or Treatment Plan: Based on the evaluation, the SAP creates a plan that may include education or treatment.
3. Follow-Up Testing: After completing the initial treatment, drivers must pass follow-up drug or alcohol tests.
4. Negative Return-to-Duty Test: Drivers must pass a drug or alcohol test to return to driving.

Completing these steps changes a driver’s status from “prohibited” to “not prohibited,” allowing them to operate a commercial vehicle again.

The FMCSA has provided a return-to-duty process guide.

How a Massive CDL Downgrade Could Impact the Trucking Industry

According to ACT Research, the deadline will likely lead to fewer drivers on the road, which could cause changes across the trucking industry.

Lower Truck Capacity and Potential Rate Increases

With many drivers facing downgrades, there could be a shortage of drivers. This may cause truckload rates to rise in 2025. Tim Denoyer, Vice President at ACT Research, explained, “Lower equipment supply, particularly by private fleets, may play a key role in a market turn in 2025, in our view.”

The DAT load-to-truck ratio, a measure of demand in the industry, has already shown signs of tightening. This means there are more loads than trucks available, a situation that could lead to rate increases. CDL downgrades may speed up this trend as fewer drivers become available, pushing spot rates higher.

Safer Roads

The FMCSA’s Clearinghouse aims to remove drivers with unresolved violations from the road. By doing so, the FMCSA hopes to make roads safer for everyone. When SDLAs enforce the Clearinghouse rule and remove non-compliant drivers, the likelihood of impaired drivers operating commercial vehicles decreases.

What Drivers and Employers Need to Know

For drivers with a “prohibited” status, time is running out. The RTD process is the only way to regain driving privileges. Drivers should immediately arrange an assessment with a Substance Abuse Professional and complete any required treatment or testing.

Employers also have a role in this process. Employers are required to check the Clearinghouse before hiring drivers and to perform annual checks on current drivers. By keeping track of these requirements, companies can help ensure they have qualified, safe drivers on their teams.

Economic Outlook for 2025

These CDL downgrades could have a lasting effect on the trucking industry. Many private fleets that handle freight may see increased demand if other drivers lose their commercial privileges. If enough drivers exit the industry, it may push rates higher in the long term.

ACT Research expects this reduction in the driver pool to impact truckload rates. With fewer drivers, demand could outpace the available trucks, increasing rates for freight carriers. While challenging, this situation could bring more balance to the trucking industry and provide safer roads for everyone.