Refer to the “In the News” below: The first major changes in truck driver work h
ID: 1192285 • Letter: R
Question
Refer to the “In the News” below:
The first major changes in truck driver work hours since 1939 are expected to reduce highway fatalities, but also contribute to the biggest increase in trucking rates in two decades. . . .
The new rules increase the time that truck drivers must set aside to rest in each 24-hour period to 10 hours from eight hours, and the total time a driver can be on duty will fall to 14 hours from 15 hours. . . .
The government estimates the new rules could cost trucking companies about $1.3 billion a year. . . .
Because trucks haul so much commerce, accounting for more than 81 percent of the nation’s $571 billion freight transportation bill last year, the effects could be far-reaching. Some users of truck transportation say higher trucking rates could lead to a broad-based increase in prices of goods from paper to chemicals, diapers to trash cans. . . .
Still, “there are about 410 fatalities a year attributed to fatigue-related truck crashes, and that’s 410 very good reasons for changing the rule,” says Annette Sandberg, administrator of the Transportation Department’s Federal Motor Carrier Safety Administration. The agency expects the new rules to save up to 75 lives a year and prevent as many as 1,326 fatigue-related crashes a year.
How much will annual shipping costs for the trucking industry increase for each saved life?
The first major changes in truck driver work hours since 1939 are expected to reduce highway fatalities, but also contribute to the biggest increase in trucking rates in two decades. . . .
The new rules increase the time that truck drivers must set aside to rest in each 24-hour period to 10 hours from eight hours, and the total time a driver can be on duty will fall to 14 hours from 15 hours. . . .
The government estimates the new rules could cost trucking companies about $1.3 billion a year. . . .
Because trucks haul so much commerce, accounting for more than 81 percent of the nation’s $571 billion freight transportation bill last year, the effects could be far-reaching. Some users of truck transportation say higher trucking rates could lead to a broad-based increase in prices of goods from paper to chemicals, diapers to trash cans. . . .
Still, “there are about 410 fatalities a year attributed to fatigue-related truck crashes, and that’s 410 very good reasons for changing the rule,” says Annette Sandberg, administrator of the Transportation Department’s Federal Motor Carrier Safety Administration. The agency expects the new rules to save up to 75 lives a year and prevent as many as 1,326 fatigue-related crashes a year.
Explanation / Answer
Annual cost to trucking industry due to new rules = $1.3 billion
Lives saved per year = 75
Calculating cost incurred per year for each life saved -
Cost per life saved = Annual cost/Total life saved
= $1.3 billion/75
= $17.33 million
Thus, annual shipping costs for trucking industry increase by $17.33 million for each saved life.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.