ELD Mandate Update: What Shippers Should Know

GTZ Blog Post, Homepage, News

Background:  

  • The December 2017 deadline for the nationwide rollout of the electronic logging device (ELD) is fast approaching. A splinter group of 21 members of the U.S. House of Representatives is attempting to delay its implementation by sponsoring a new bill that would push out implementation until December 2019.  Commercial Carrier Journal (CCJ) reports that with larger looming issues in Washington—healthcare reform, tax reform, and others—the best chance for the bill to pass is if it were attached to a more significant effort, such as DOT Funding.
  • According to Logistics Management Magazine, many owner-operators are ill-prepared for the December rollout of ELDs. While most of the large truckload and less-than-truckload fleets have been using electronic logging devices for years, shippers should be aware that smaller fleets and owner-operators are likely behind the curve on this.
  • The Federal Motor Carrier Safety Administration (FMCSA) insists that ELDs will save trucking companies a collective $1.6 billion per year by limiting paperwork costs and enhancing fuel efficiency. However, according to IBISWorld Procurement Research Analyst Ashley Cruz, “Most carriers and independent operators claim that the mandate will increase their compliance costs. This will mean higher prices for businesses procuring trucking services.”

GlobalTranz’ Take: What Shippers Should Know

  • Even though a small group of members within the U.S. House of Representatives are attempting to delay the ELD mandate, carriers, 3PLs and shippers should be prepared for a December 2017 roll-out.
  • As part of our carrier compliance process, GlobalTranz requires all carriers be in full compliance with the Federal Motor Carrier Safety Administration (FMCSA) regulations. The majority of our carrier network is already ELD compliant and has been using electronic logging devices for several years.
  • Prepare for revised transit times. Shippers should review lanes that fall between 500 to 800 miles. Those are line hauls where carriers may have previously delivered in 1-day with paper logs, but when ELDs are in place, those lanes may become a 2-day transit time with inherent rate increases. Many drivers believe the ELD implementation will limit their flexibility in transit time, which may force carriers to negotiate higher load prices and longer transit times. A 3PL like GlobalTranz can help analyze your lanes and identify areas of vulnerability to provide you predictable shipping times, rates and help you meet your customer requirements.

Learn More

 

Contact GlobalTranz for a freight analysis to identify lanes vulnerable to ELD mandate.