Road Haulage Contracts

ONE OF FEATURES OF MOST ROAD HAULAGE CONTRACTS IN INDA IS THAT THEY ARE BASED ON TRIPS. THIS ELEMENT OF THE CONTRACTS MEANS THAT TRUCK DRIVERS AND OWNERS, LOOKING TO MAXIMISE RETURNS, HAVE AN INCENTIVE TO COMPLETE TRIPS AS QUICKLY AS POSSIBLE. THIS OFTEN MEANS NOT RESTING ALONG THE WAY, SPEEDING, OR USING PERFORMANCE ENHANCING SUBSTANCES TO OPERMIT LONGER DRIVING HOURS. THESE IMPAIR DRIVER PERFORMANCE AND INCREASE THE RISK OF ACCIDENTS.

A MODEL ROAD HAULAGE CONTRACT WILL BE DEVELOPED AS PART OF THIS INDUSTRY CODE. THIS MODEL CONTRACT WILL SPECIFY THE DRIVING HOURS, REST PERIODS, SPEEDS, AND MONITORING REQUIREMENTS FOR ENSURING COMPLIANCE. FURTHEMORE, THE MODEL CONTRACT WILL BE BASED ON AN HOURLY COMPENSATION RATHER THAN ON A TRIPO BASIS, THEREBY ELIMINATING THE INCENTIVE FOR PSEEDING.

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