The Federal Motor Carrier Safety Administration has mandated that drivers begin recording their hours using an electronic logging device (ELD), a device that uses technology to digitally record a truck driver's hours, as of December 18,2017
Now that their hours are being meticulously recorded, carriers will be held to a higher standard of accountability and will be able to take fewer trips. Federal hours-of-service regulations will be more strictly enforced as a result, which will enhance both the working conditions of drivers and overall traffic safety.
However, because of this rule, we anticipate increased costs and less available capacity for drayage and FTL.
Will this affect the shipments I make?
What to anticipate is as follows:
There may be small pricing hikes for cartage and LTL as well as higher prices for long-haul FTL (more than 600 miles). Less total capacity for long-haul FTL and drayage. Experts forecast a capacity loss of 2% to 5%.
Longer wait times at delivery sites and less flexibility. If a trucker is required to wait for a delivery at a warehouse for an extended period, there may be additional fees in addition to the wait time. A trucker may impose a "layover fee" if their subsequent pickup is delayed.
The majority of cartage firms are exempt from this rule, and the majority of LTL drivers do not collectively drive enough miles for this regulation to have a substantial impact on their pricing or capacity. As a result, cartage and LTL will not be as negatively impacted.
However, there is a chance that drayage and FTL rate increases will have a small knock-on effect and cause rate rises as well.
What is an ELD, and how did this requirement come to be?
Only a certain number of hours may a truck driver drive each day. At the moment, drivers record their driving, waiting, and off-duty hours in paper diaries.
Because of this, it is challenging to implement federal hours-of-service regulations which leave space for error.
Do I have to take any action?
Simply be aware that rate increases could occur and know that your Beeontrade staff is actively watching any extra implications that this regulation has on the market and your shipments. Please feel free to contact them personally if you have any further inquiries!