Skip to content
Search AI Powered

Latest Stories

newsworthy

Survey finds larger truck fleets ready for ELD mandate; small firms, not so much

All expect hit to productivity, Transplace survey says.

A survey released today by a leading third-party logistics provider came to the rather unsurprising conclusion that larger trucking firms have been more engaged in installing electronic logging devices (ELDs) than their smaller brethren.

The survey, conducted over the past few months by Dallas-based Transplace, canvassed more than 400 motor carriers of various sizes. It found that 81 percent of large fleets—firms with more than 250 trucks—had achieved full ELD implementation. The survey found that the remaining 19 percent were working toward full implementation, which, barring a court decision to overturn the rule, is scheduled to take effect across the industry on Dec. 16, 2017, according to Department of Transportation (DOT) regulations.


By contrast, only one-third of fleets with less than 250 trucks have fully installed ELD equipment and systems, the survey found. About 29 percent have begun the implementation process, while the remaining 38 percent have no immediate plans to begin implementation, according to the survey.

Many large fleets have voluntarily installed ELDs in their cabs over the past few years. Many reported initial cost and productivity hiccups, but those problems have generally disappeared. Smaller fleets and owner-operators, which operate by the seat of their pants and are already burdened with significant costs, may find the cost and productivity hits to be too much to manage.

Still, ELD implementation is seen as imposing a uniform hit if and when the rules are finalized, the survey found. About 56 percent of large carriers expect their capacity levels or their equipment utilization to decline. Smaller carriers appear to be more concerned, with 64 percent expecting their fleet utilization to be negatively affected, according to the survey.

An anticipated decline in fleet utilization could stem from drivers exiting the industry as a result of the mandate. Slightly more than half of the respondents said they have lost drivers who did not want to operate under ELDs. Most noted that the driver attrition has been minor, the survey found. However, one carrier respondent said it lost half its drivers when it switched from traditional paper logs to electronic logs.

According to the survey, 45 percent said ELD compliance, which covers buying and deploying the equipment, would translate into a per-unit cost of about $700. About 18 percent said the cost would range between $500 and $700 per unit, while 19 percent expected the cost per unit to fall between $300 and $500. The cost estimates do not include any hits from diminished productivity; analysts have said fleet productivity will take a low- to mid-single-digit hit due to ELD implementation.

For supporters of ELD implementation, the survey brought some positive news. Of the carriers that have installed ELDs, 84 percent of large fleets and 56 percent of smaller fleets have reported a reduction in the frequency of federal driver hours-of-service (HOS) and logging violations. About one-third of all respondents said they expect ELD compliance to improve their fleet-monitoring efforts. ELDs will track a vehicle's location, but not a driver's whereabouts at a given point in time.

Many smaller operators may be hanging back to see how the legal battle over ELDs plays out before deciding whether to commit. A hearing was held yesterday in federal appeals court in Chicago to hear arguments in a suit filed by the Owner-Operator Independent Drivers Association (OOIDA), which represents owner-operators and micro fleets, to block the rules. OOIDA has argued that an order to install an ELD device for prolonged use without a warrant represents an unconstitutional search and seizure under the Fourth Amendment.

Because drivers must still manually input changes in their duty status, the rule fails to comply with a congressional statute requiring ELDs to accurately and automatically record those changes, according to OOIDA. As a result, the devices are no more reliable than paper logbooks for recording hours-of-service compliance, it said.

In 2011, the group convinced the courts to block rules governing ELD implementation on grounds they failed to do enough to protect drivers from the possibility of harassment by fleet owners and operators. The modified final rule contains significant driver-protection provisions, according to the Federal Motor Carrier Safety Administration (FMCSA), the DOT sub-agency that crafted the regulations.

Norita Taylor, an OOIDA spokeswoman, said the group is confident it can get the rules overturned again.

In a statement, Ben Cubitt, Transplace's senior vice president, consulting and engineering, said most carriers, regardless of size, expect a "noticeable impact to utilization and capacity" from the ELD mandate. The challenge, Cubitt said, will be to "find the right balance of good safety practices without causing a significant disruption to the transportation industry."

The Latest

More Stories

Image of earth made of sculpted paper, surrounded by trees and green

Creating a sustainability roadmap for the apparel industry: interview with Michael Sadowski

Michael Sadowski
Michael Sadowski

Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled

Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.

Keep ReadingShow less

Featured

xeneta air-freight.jpeg

Air cargo carriers enjoy 24% rise in average spot rates

The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.

Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.

Keep ReadingShow less
littler Screenshot 2024-09-04 at 2.59.02 PM.png

Congressional gridlock and election outcomes complicate search for labor

Worker shortages remain a persistent challenge for U.S. employers, even as labor force participation for prime-age workers continues to increase, according to an industry report from labor law firm Littler Mendelson P.C.

The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.

Keep ReadingShow less
stax PR_13August2024-NEW.jpg

Toyota picks vendor to control smokestack emissions from its ro-ro ships

Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.

Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.

Keep ReadingShow less
trucker premium_photo-1670650045209-54756fb80f7f.jpeg

ATA survey: Truckload drivers earn median salary of $76,420

Truckload drivers in the U.S. earned a median annual amount of $76,420 in 2023, posting an increase of 10% over the last survey, done two years ago, according to an industry survey from the fleet owners’ trade group American Trucking Associations (ATA).

That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.

Keep ReadingShow less