Life After the ELD Mandate

If you’re still hoping the ELD mandate will be delayed or overturned, then American Trucking Association (ATA) President and CEO Chris Spear says you’ve got to face the reality: The ELD mandate is here to stay and the deadline for implementation is fast approaching—the time has come to embrace it.¹

“It is now time to move forward,” Spear said during the ATA State of the Industry Address on Oct. 17 during the Management Conference & Exhibition. In a report to the ATA last month, the American Transportation Research Institute listed ELD as one of the top two critical issues the trucking industry faces.⁵ “ELD technology removes one’s ability to exceed the legal hours of services, ushering in a safe, efficient and fair playing field for the nation’s trucking industry,” said Spear.¹

With the implementation deadline imminent, it’s time to shift focus to life after ELD and look at how it can help combat other critical issues plaguing the trucking industry, Spear said. 

Shortage on drivers for the foreseeable future

Moving forward, the trucking industry is facing new and more serious obstacles, Spear said. The biggest concern is the demand for drivers.³ The ATA estimates a shortfall of 48,000 drivers and projects this shortage potentially could increase to 175,000 by 2025.³ Impacting the driver shortage is the surge of truckload turnover. According to ATA’s quarterly report, the turnover rate at large truckload carriers jumped 16 percentage points to 90 percent, and the smallest carriers saw a turnover rate of 85 percent.⁴

Spear offered some recommendations for addressing this challenge to go with his warnings. “Our industry faces several barriers that must be addressed if we’re to grow, including establishing pre-apprenticeship and apprenticeship training programs, and hiring and training 18- to 21-year-old drivers. We need interstate recognition of credentials, entry-level training standards for veterans and nonveteran employees, solutions for the impact of detention time and congestion on drivers’ Hours of Service, and more,” he said.

What you can do

Looking ahead to the enforcement period of the ELD mandate, the cost of noncompliant vehicles could become more impactful on your bottom line than repair costs. After December 18, truckers who are stopped for inspection that don’t have ELD devices will suffer violation points within the FMCSA’s Compliance, Safety, Accountability scoring program.⁶ Implications of such consequences could extend further than just any fees incurred. Consider also the loss of productivity when a driver is taken out of service, credibility with customers, and the ability to attract qualified drivers and technicians. Together, these can end up costing a business up to $2 billion a year.⁷

If these are problems you’re currently facing, then merely waiting for conditions to improve will not work. You need to seek out and implement a solution that will help you be more productive and efficient to combat the current issues negatively impacting your business. The mandate to implement an ELD solution brings with it the opportunity to bundle your solution with fleet tracking to address issues like these.

Improved productivity

The switch from paper-based logging processes to automated, electronic processes is saving businesses time and making it possible to do more with the employees and equipment they already have. That means more revenue can be brought in without increasing payroll or expenditures on new vehicles or equipment. GPS fleet tracking can also improve accuracy of billing and payroll allowing for improved customer service and more visibility and accountability of your mobile workforce.

Improved efficiency

Making the most each day, on the road and on the job, means more money—both saved and made. Companies that rely on fleets to drive revenue can use fleet tracking to improve delivery of a product or service with more accurate arrival times and visibility into your fleet and reduce the risk of any unwanted surprises like preventable repairs or failed inspections. Fleet tracking helps business reduces the risk of violations with automated and accurate (hours of service) HOS records and unhealthy vehicles with maintenance alerts. These capabilities help you keep your employees productive and revenue flowing.

Improved safety

At the basic level, the ELD mandate and any bundled fleet tracking solution can help set your business on the course to improved safety. In addition, GPS fleet tracking helps automate and share the responsibility of monitoring vehicle performance and maintenance. By keeping record of service events and sending alerts when scheduled service is coming up, fleet tracking can help improve productivity by preventing unexpected repairs that come from neglected maintenance and making roadside inspections go more smoothly.

Be more than compliant

Compliance is the minimum requirement of the ELD mandate, but with it comes a key opportunity to help your businesses keep money where it belongs, in your bank account. Make the most of it by implementing a solution that will also help you take preventive measures to mitigate the associate cost increases with the driver shortage and increased maintenance costs by minimizing unnecessary costs on things like time spent on manual paperwork.

Sources:

¹http://www.trucking.org/ATA%20Docs/News%20and%20Information/docs/State%20of%20the%20Industry%20Speech.pdf  

²http://www.trucking.org/article/CEO%20Spear-Highlights-ATA-Advocacy-Efforts,-Calls-for-Unity-in-Annual-Address  

³http://atri-online.org/wp-content/uploads/2017/10/ATRI-Top-Industry-Issues-2017.pdf  

⁴http://www.trucking.org/article/Truckload-Turnover-Surges-in-Second-Quarter  

⁵http://atri-online.org/wp-content/uploads/2017/10/ATRI-Operational-Costs-of-Trucking-2017-10-2017.pdf 

⁶https://www.trucks.com/2017/09/22/trucking-companies-prepare-eld-mandate/ 

⁷http://www.bankrate.com/auto/true-cost-of-not-maintaining-your-car/