You may think of the humble electronic logging device (ELD) as a tool for tracking truck drivers' hours of service (HOS). But the technology's developers have a much grander vision.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Truck operators across the nation scrambled in December to install electronic logging devices (ELDs) ahead of a federal safety mandate requiring that virtually all trucks built after the year 2000 have the devices onboard. Regulators say the digital vehicle-monitoring equipment will enable more accurate accounting of time worked under federal hours-of-service (HOS) regulations than was possible with paper logbooks, helping ensure that drivers get the rest they need and that roads are safer for all motorists.
Yet even as truckers begin familiarizing themselves with the new equipment, developers are at work creating next-generation devices that could change the way we think about ELDs. What they envision is a sophisticated multifunctional device whose capabilities extend far beyond simply tracking drivers to encompass a broad array of transportation and fleet management functions.
For instance, future ELD designs could incorporate features allowing trucks to communicate with remote software that can help prevent breakdowns, improve navigation, or locate backhaul loads, proponents say. Developers also envision models that would enable fleets to combine detailed information about individual drivers—such as their steering and braking habits—with precise information about the specific vehicle (conveyed through engine telematics and other sensors) and then analyze the data through cloud-based platforms.
THE TRUCK BECOMES A ROLLING OFFICE
As for what will make this all possible, the key lies in connectivity. By connecting truck cabs to cloud computing, enhanced ELDs could access sophisticated software and vast databases that have previously been inaccessible from a moving vehicle. That capability could transform a truck from a simple means of conveyance into a sophisticated mobile office, said Usha Iyer, vice president of marketing at Honeywell Safety & Productivity Solutions. Honeywell recently teamed up with transportation technology provider Omnitracs to launch an ELD software platform designed to help fleets improve worker safety and avoid violations, among other capabilities.
And that's only the beginning, according to Iyer. Developers are currently looking at ways to use "smart" ELDs to tackle other industry challenges, she said. "Fleets are not just complying with the regulation to track drivers' hours of service but are now looking at how they can use ELDs to drive toward other challenges like rising labor costs, driver shortages, and e-commerce trends," she said.
To reach those goals, developers will take advantage of ELDs' capability to collect more granular real-time data than was possible with automatic onboard recording devices (AOBRDs), the previous generation of vehicle data recorders, Iyer said. By analyzing the ELD-generated data with cloud-based software, fleets can improve variables ranging from asset utilization rates to navigation, safety, and fuel efficiency, she said.
Fleets could even use the capabilities to improve the driver experience by delivering customized services to each individual truck, Iyer added. "A driver could get into his cab in the morning, log in [to an onboard computer], and manage his workflow, whether that means turn-by-turn navigation or document capture and imaging," she said.
BOOSTING THE ROI ON ELDs
As for when all this might happen, that will depend on a couple of factors, according to Norm Ellis, president of ERoad, a Portland, Ore.-based fleet management solutions provider. Much of the hardware needed to enable such applications is already in place, he said. But getting to the next level will require software improvements as well as building up the network of trucks equipped with the devices, he said.
The ELD mandate that took effect in December affects about 4 million trucks in the U.S., including 2.5 million to 3 million vehicles that had already been equipped with either AOBRDs or ELDs well before the deadline, Ellis said. Adding the remaining 1 million to 1.5 million vehicles and beginning the required process of upgrading the rest to newer ELD models will generate a flood of new data that fleets could potentially use to generate valuable insights, he said.
As more fleets adopt ELDs, they will increasingly look for additional ways to use the information the devices provide. "Some people will just hunker down and use it to monitor hours of service, but once you have this device in the vehicle, many others will ask 'What else can I use the ELD for that will give me a return on investment?'" Ellis said.
Technology providers have anticipated that question. A number have already rolled out ELDs with features like wireless data plans, cloud analytics platforms, or connections to vehicle telematics. While those enhanced models cost more than their basic counterparts, most fleets will be able to justify the investment through the operational savings they yield, he said.
For example, the Federal Motor Carrier Safety Administration (FMCSA) requires that ELDs be connected to a vehicle's engine control module (ECM) so the device can record when the ignition is turned on and when the vehicle is moving. However, some enhanced ELDs allow users to collect a wide range of additional data, such as engine diagnostics, and send it to a cloud-based platform for analysis. If the results indicated that, say, the truck was at high risk of a breakdown, the fleet manager could then instruct the driver to visit the closest mechanic before expensive damage could occur, Ellis said.
Another way that ELDs may help fleets cut costs is by recording drivers' behavior on the road, with an eye toward curbing bad—read: costly—habits, he said. As for how that might work, Ellis offers this example: "If you can identify a guy who's driving with hard braking or rapid acceleration, then you know he could manage his miles per gallon (mpg) more efficiently. Guess what happens when you pound the pedal to the floor? You burn through your fuel. But if you can move a guy from 5.5 to 6 mpg, that's a huge impact to the bottom line."
SHAKEOUT AHEAD?
Technology providers are already at work adding new hardware and software features that would enable these new applications, with vendors launching dozens of new ELD models in recent months, said Thayne Boren, general manager of the mobile division at Truckstop.com, the New Plymouth, Idaho-based loadboard provider. The firm has created a marketplace that matches drivers, carriers, and fleets with the right ELD supplier for their needs.
Many ELD vendors sell a range of products, from basic models designed to be affordable for small fleets and owner/operators to more expensive devices with added functionality, intended for trucking lines with more sophisticated information technology needs, he said. In total, the ELD market currently has an estimated 150 different vendors selling more than 190 models, he said.
But Boren thinks that's about to change. He predicts the marketplace will undergo a restructuring in the coming months, as weaker players start dropping out and others join forces through mergers or acquisitions. "I see a lot of consolidation happening," he said. "You could probably divide that [number of providers] by four over the next 24 months."
The market will also evolve in response to external factors such as the ongoing upgrade from 3G to 4G cellular networks, Boren said. With access to greater wireless bandwidth, ELDs will be able to transmit far more data, which will encourage users to connect their ELDs to a wider range of peripheral devices and sensors.
OUT WITH THE OLD
Originally designed to perform the simple task of recording drivers' hours behind the wheel, ELDs are on track to evolve quickly over the next few years, driven by trucking fleets' relentless search for ways to cut costs and improve performance. The devices could soon assume a central role in recording, analyzing, and improving the smallest details of transportation operations.
"There is diversity and confusion in the market today, but ELDs will eventually consolidate a lot of technologies and improve archaic ways of doing things," Boren said.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.