🇺🇸United States

Lost Revenue from Out-of-Service Orders Due to HOS Violations

1 verified sources

Definition

HOS and ELD violations result in out-of-service (OOS) orders for drivers or vehicles, typically lasting four hours, causing direct revenue loss. Industry estimates place lost revenue at $350 per OOS incident based on $87.50 hourly revenue (50 mph at $1.75/mile). Additional costs include roadside repairs (3-5x higher than terminal) and delivery delays, making this a systemic issue in non-compliant operations.

Key Findings

  • Financial Impact: $350 per OOS violation
  • Frequency: Per violation event - recurring with enforcement
  • Root Cause: Non-compliance detected during inspections leading to mandatory downtime, exacerbated by ELD inaccuracies or HOS exceedances

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Truck Transportation.

Affected Stakeholders

truck drivers, dispatchers, fleet operations managers

Deep Analysis (Premium)

Financial Impact

$350 per OOS incident (4 hours × $87.50/hour); $1,000-$15,000 per HOS violation citation; fleet-wide impact of 36.7% initial violation reduction post-ELD suggests prior baseline of significant OOS incidents • $350 per OOS incident (baseline per search context) + $1,300-$1,500 per driver annually from unpaid detention time + 3-5x roadside repair premiums vs. terminal repairs + increased insurance claims from speed-compensating behavior post-OOS; aggregate per carrier: $1.1B-$1.3B industry-wide, individual fleet impact $50K-$200K+ annually depending on fleet size and violation frequency • $350 per OOS incident (direct loss); 2-5% freight discount per claim (retail chargeback standard); revenue recognition delay (10-15 days)

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Current Workarounds

Broker relies on carrier to refuse non-compliant loads; broker manually tracks load status in spreadsheet; some brokers maintain duplicate load lists across multiple TMS systems • Dispatcher calls driver to ask hours informally; relies on driver's memory; some fleets maintain parallel Excel log to manage hours across multiple ELD systems • Dispatcher calls warehouse to check queue length; if long, dispatcher holds load and manually reschedules; parallel tracking in spreadsheet of all pending loads with estimated wait times

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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