Logistics Management: Transportation Laws for Retailers

Introduction: Federal Authority Over Transportation

Because the Constitution grants Congress the authority to govern interstate commerce, most important transportation laws operate at the federal level. This is especially significant for retailers seeking to move goods from port through their logistics systems to retail outlets (HG.org, 2016). There are two major modes of transportation for moving retail goods in this way: railroad and highways. The latter is governed by the Federal Motor Carrier Safety Administration (FMCSA), which sets and enforces the primary regulations affecting retail trucking operations.

Hours of Service Regulations and Retailer Impact

Among the codes governing the movement of goods is Part 395, Hours of Service of Drivers. This law is relevant to many retailers, particularly in light of incidents where drivers worked extended hours, reduced their competency as a result, and caused accidents and deaths. Studies of sleep deprivation in long-haul truck drivers found that many drivers average fewer than five hours of sleep per night, and over half experience drowsiness while on the road (Mitler et al., 1997). Some of these incidents have brought companies like Walmart under scrutiny from the National Transportation Safety Board (Levin & Plungis, 2015).

Retailers are directly affected by regulations governing how many hours their truck drivers can work. Retailers have an incentive to keep drivers on long shifts, as this shortens the time needed to move inventory through the system, and predictable delivery times can have a significant impact on profitability through an efficient logistics chain. There are specific regulations governing drivers who work within a 100-mile radius (short-haul), a 150-mile radius, and long-haul drivers. For retailers that use delivery drivers to bring goods directly to customers, separate regulations apply to those drivers as well (DoT, 2016).

Hazardous Materials Handling Requirements

While hours of service are perhaps the most important area where government policy affects retailers and their logistics chains, other regulatory areas also apply. Regulations govern the handling of dangerous goods, and the definition of a hazardous material matters greatly to retailers. The steps required to ensure safety during transport of those goods can be substantial. Many hazardous materials are commonly sold by retailers, including certain types of batteries, alcoholic beverages (especially spirits), other high-alcohol products such as perfumes, paints, dyes, ammunition, various flammable goods, propane tanks, bleach, stains, solvents, and more. Retailers must understand the different rules for handling these items and how those rules affect the movement of such goods from port to retail location (U.S. Transcom, 2013).

Ultimately, there are not many strict regulations that would be considered onerous to businesses with respect to the transportation of retail goods from port to store. Most goods are not classed as hazardous, and even those that are can generally be handled without excessive difficulty. Few items sold in a typical retail store require their own dedicated vehicle. It is necessary, however, to take steps such as separating flammable items from combustibles — for example, keeping high-alcohol products away from lighter fluid or matches. Such measures fall within basic safety guidelines. Drivers must also be trained in handling hazardous materials before they are permitted to transport them.