ELDs

Trucking Industry Adjusts to ELD Mandate as Focus on HOS Compliance Sharpens

Trucking Industry Adjusts to ELD Mandate as Focus on HOS Compliance Sharpens

The trucking industry is now preparing for Phase 3 of the Electronic Logging Device legislation that began the implementation process on February 16, 2015.  The legislation to better control hours-of-service reporting was set to phase in after the final ELD rules were published in December of 2015 with a compliance date of December 2017.

Trucking Industry Updates

Trucking Industry Updates

Driver Shortage:  Driver capacity is at its lowest since 2005, with a ratio of one truck being available for every 12 loads so far this year, according to DAT Solutions. (1)  With the ELD mandate taking effect last month, drivers retiring and the struggle to recruit the younger generation, as well as government regulations such as hours-of-service, the American Trucking Associates reported that the industry will need nearly 900,000 additional drivers to satisfy demand. (2)  This capacity crunch has caused many shippers to either delay shipments or pay more to get their freight moved.

Shippers/Carriers Hit Hard by Chargebacks

 Shippers/Carriers Hit Hard by Chargebacks

Vendor chargebacks can be costly, with shippers and carriers being hit hard with financial deductions on their invoice for a number of violations.  Common chargebacks include late/early shipment arrivals, paperwork errors, invalid advance ship notices (ASNs), utilizing the wrong carrier, incorrect packaging/labeling, shortages, damage…the list goes on.  Examples of penalties from one such vendor include 10% off the total shipment invoice for late arrival, $195 for each incorrect bill of lading, $10 per carton for an invalid ASN, and $5 for each incorrect label.1

ELD Out-of-Service Orders Won’t Take Effect Until April 2018

 ELD Out-of-Service Orders Won’t Take Effect Until April 2018

While the Federal Motor Carrier Safety Administration’s electronic logging device (ELD) mandate goes into effect on Dec. 18th of this year, truckers will not be issued out-of-services due to compliance failure until next year, according to an announcement by the Commercial Vehicle Safety Alliance (CVSA) earlier this week.

Court Hears Arguments on Electronic Logging Device Mandate

 Court Hears Arguments on Electronic Logging Device Mandate

Carriers have until Dec. 10, 2017 to comply with a ruling mandating the usage of electronic logging devices (ELDs) on their trucks, replacing paper logs to track hours-of-service (HOS).  The ruling, according to the Federal Motor Carrier Safety Administration, will provide three main benefits:  improve safety by enforcing HOS compliance and therefore preventing fatigue, saving over $1 million in revenue by replacing paper logs, and “increase the efficiency of roadside law enforcement personnel in reviewing driver records.” 1