10 Months Later – The Impact of the ELD Mandate
The transportation industry, which originally balked at the idea of the ELD mandate, has now had 10 months to come to terms with the new technology requirements. The mandate, which went into effect on April 1st of this year, requires trucks to be equipped with an electronic logging device (ELD) to automatically record a truck’s driving time. This ensures that drivers are strictly obeying hours of service requirements put in place to protect them and other drivers.
10 months in and transportation professionals still seem to have mixed feelings about the ELD mandate. To capture how the industry is reacting, Zipline Logistics’ carrier team surveyed over 150 trucking companies to get their opinions on the ELD mandate and how it’s impacted the industry. FreightWaves compiled these results into this detailed infographic:
According to the research, trucking companies are split on whether ELDs improve safety. About 60% of respondents felt that ELDs increased safety since the mandate went into effect, while the remaining 40% thought the devices decreased safety.
77% of carriers surveyed reported that they are more selective in the shippers/receivers that they are willing to work with after the mandate. 80% of these say there are now some facilities they will absolutely not load out of. Slightly more than half of carrier respondents say they have changed how long they will wait at a shipper/receiver. With hours of service being monitored more closely, there is no longer much wiggle-room for delays or partners who cannot maintain high KPIs.
Whether or not freight costs increased was another main question of Zipline Logistics’ survey. 48% of carriers say that linehaul rates have increased due to the requirement for ELDs, though 33% felt that ELDs weren’t at fault for rate increases. It seems to be a consensus, at 71%, that per mile rates have increased due to ELDs.
What can be done to keep ELDs from disrupting supply chains?
Equipping all trucks with electronic logging devices has been a hurdle for many in the transportation industry. Now that the mandate is in effect, devices are installed, and drivers are successfully using them, it’s time to think about how to leverage them to your best advantage.
Transportation management technology like Kuebix TMS can help companies achieve higher levels of visibility across their entire supply networks. This level of visibility will help them plan ahead to avoid facilities that are too slow to load/unload and choose carriers that have excellent service levels and on-time delivery metrics. The ELD mandate doesn’t have to be a detractor for companies shipping freight, with the right strategies in place, ELDs can actually serve to improve operations and keep drivers safe on the road.