Effective October 1st, 2005, the Federal Motor Carrier Safety Administration and Department of Transportation has mandated new Hours of Service rules for the trucking industry. The key is what we collectively are doing as an industry to understand the scope and magnitude of the new rules and what we can do together to minimize the potential negative financial implications. We recognize this will be a joint effort and have taken ownership of those items we can control. Please review the items below pertaining to your business ultimately impact our industry.

Split Break Example

Under the new rules, all time will count towards the 14-hr clock except an 8 hour sleeper break. The example below shows how costly a delay could be to the driver's available hours. To simplify the example we did not include additional required time for Vehicle Inspections, Fuel, etc.

Split Break Example

Customer Impact Items:

• Multiple stops
• Load delays (load ready times, production line delays)
• Unload delays
• Additional driver involvement (counting, loading, scaling, sorting, etc.)

What does this mean to you? Each of these items can and will affect our available driving hours, which will impair our ability to effectively meet delivery and production schedules. By taking ownership of the action items listed below, you can help to reduce the impact upon your business and the industry as a whole:

Customer Action Items:

• Reduce multiple stops/increase stop pay
• Establish extended/overnight parking areas
• Extend shipping/receiving operating hours
• Limit driver involvement
• Utilize drop equipment
• Communicate accurate ready times

How is Werner preparing for these changes? Werner has worked closely with the Department of Transportation to fully understand the changes and to clarify areas of uncertainty. We have been running a test group of drivers under the guidelines of the new H.O.S. and have identified items we as a carrier can control. Several of our departments have already implemented process improvements and have begun initiatives to ensure we are fully prepared for the changes.

Werner Action Items:

• Driver education
• Internal process improvements
• Time management/planning

The new H.O.S. is an industry issue where each partner (carrier, shipper and consignee) must take ownership, improve upon and hold themselves accountable. Several examples following clearly illustrate the "negative impact" these new hours will have if, individually, we do not adapt and correct the items impacting us.

Together we can control and alleviate additional charges by understanding the roles we all must take to prevent economic hardship on the industry and, ultimately, the consumers.