Researchers: CDL/CLP downgrades that threaten 177K drivers to push rates higher, increase highway safety
This week, ACT Research released a report suggesting that November’s Drug & Alcohol Clearinghouse Commercial Driver’s License (CDL) and Commercial Learner’s Permit (CLP) downgrades will have a positive impact on the drivers who remain on the road.
FMCSA Mandates CDL/CLP Downgrades
On November 18, 2024, the FMCSA will require all State Driver Licensing Agencies (SDLAs) to remove commercial driving privileges from the driver’s license of “Prohibited” individuals.
According to the most recent FMCSA reporting, 177,092 CDL and CLP holders are currently listed in “Prohibited” status in the agency’s Drug & Alcohol Clearinghouse, meaning that if these drivers do not complete the Return-to-Duty process, they will face license downgrades in just a few weeks.
Researchers Predict Safer Roads, Higher Rates
An October 30, 2024, a freight forecast from ACT Research looked at how the CDL/CLP downgrades will likely reduce truckload capacity and result in an upswing in rates.
“Lower equipment supply, particularly by private fleets, may play a key role in a market turn in 2025, in our view. And next month, an FMCSA regulation could potentially downgrade tens of thousands of CDL holders in states who have not heretofore been required to enforce the FMCSA’s Drug & Alcohol Clearinghouse,” said Tim Denoyer, ACT Research’s Vice President and Senior Analyst. “While difficult to quantify, when state driver’s license authorities downgrade a large number of CDLs on November 18, it should have two positive effects on the industry: making our roads safer and leading truckload rates higher.”
The CDL/CLP downgrades are coming as a result of an October 2021 FMCSA-issued second Final Rule (Clearinghouse-II) to further support and strengthen the first Clearinghouse final rule, which declares that drivers with a “prohibited” Clearinghouse status are prohibited from operating a commercial motor vehicle (CMV) on public roads.