ELD’S BRING SIZABLE RATE INCREASES
Electronic Logging Devices (ELD) will be mandatory on December 18, 2017, and there is no doubt this change will impact your supply chain. The use of ELD’s will constrict truck capacity and lead to rate increases. It is estimated truck rates will increase by 10% or more.
No matter the mode…full truckload, LTL, drayage…all commercial truck drivers are allowed to be on-duty for a total of 14 hours in a day, with maximum drive time of 11 hours in a day. Should the driver get hung up in traffic, at a marine terminal, at a loading or unloading location, or anywhere else on his journey and not be able to complete the delivery within the allowable hours of service (HOS), he will have to pull over and rest for 10 hours. Yes, even if he is minutes away from his destination. It is a hard, inflexible stop. No exceptions.
There was a last ditch effort by some in the trucking community to delay the implementation of the ELD mandate. However, the appeal fell on deaf ears with our federal legislators.
While Devine invests heavily in our safety program and closely monitors drivers’ HOS to ensure compliance, it is estimated 30% of the nation’s drivers apply “flexibility” with their paper logs. As a result, it could take longer to move your cargo, and, as an industry, it will take more drivers to move the same amount cargo.
The ever-present driver shortage is going to make it even more complicated.
Be prepared! Start a dialogue with your provider now.