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October 2018 ELD Update Report | Zipline Logistics

Zipline Logistics surveyed 150+ carriers about the ELD Mandate. Findings look at business impacts, safety, operational changes, and morale.

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October 2018 ELD Update Report | Zipline Logistics

  1. 1. IMPACTS OF ELD MANDATE 60+ Years of Design + Innovation + Excellence 433 Fulton Street  New City New York City 10956a Survey of 150+ carriers about ELD Mandate impacts, conducted by Zipline Logsitics UPDATE - OCTOBER 2018
  2. 2. Table of Contents Introduction Key Findings Survey Questions Safety Rates Wait Time Shippers of Choice Haul Length Fleet Size Model Year Market Impacts Tech Difficulties Comments Page 3 Page 4 Page 9 Page 12 Page 14 Page 17 Page 23 Page 24 Page 26 Page 28 Page 29 Page 30
  3. 3. ELD Survey Introduction Zipline Logistics, a third-party logistics (3PL) service provider specializing in retail and grocery transportation, surveyed more than 150 trucking companies in its network about the Electronic Logging Device (ELD) Mandate and its impacts. Goals of the survey included seeing how the market has adjusted since the December 2017 rollout of the Mandate, what preferences and procedures have changed with fleets since the Mandate, and how drivers and dispatchers feel since its introduction. This survey builds on Zipline's initial ELD survey report that was released in March 2018.  3 October 2018
  4. 4. KEY FINDINGS The majority of fleets surveyed were moderately sized between 6-100 trucks and the majority of fleets employed company drivers. 67.55% of the fleets surveyed were compliant prior to the ELD mandate while another 21.85% of fleets were compliant by the ELD enforcement date in April 2018. Responses showed that the ELD Mandate has required fleets to expand to handle the same level of orders as before the regulation, but they are being held back by the increasing driver shortage. Since our first survey, the majority of carriers have not changed their length of haul preferences. However, smaller carriers with 30 or fewer trucks were the most polarized, with 37% reporting they preferred haul lengths shorter than 500 miles and only 15% preferring 500+ miles.  4 October 2018
  5. 5. KEY FINDINGS, CONTD. The survey also asked drivers and dispatchers if they felt ELDs were doing what they were intended to do; increase safety on the road. 60% of fleets surveyed felt that safety was improving among their drivers. They shared that ELDs were forcing drivers to stop, rest, and run legally. The other 40% of respondents felt that ELDs were decreasing the safety of drivers and others on the road. They responded that drivers were speeding more and driving recklessly to cover more ground in the time allotted by ELDs and to meet strict deadlines. Drivers also mentioned that they are now forced to drive in hazardous weather and when tired so they do not burn their ELD hours after they are already running. These findings leave a large gap in determining whether ELDs are doing what they were intended to do and what the actual consequences are of the regulation. It is important to note that these findings around safety are the same as our survey conducted in March 2018.  5
  6. 6. KEY FINDINGS, CONTD. Our survey showed 77% of carriers are more selective in the shippers/receivers they are willing to load in/out of since the Mandate. Additionally, 80% of carriers state that there are now facilities they will absolutely not load from. 43% of carriers state the amount of shipper/receivers they refuse to go to has increased since the ELD Mandate. These warehouses all had a reputation of long load and unload times.   Only 17% of carriers will wait as long as it takes to be loaded, while the majority will wait only up to 4 hours before pulling their drivers. 54% of carriers have changed how long they will wait since the ELD Mandate. Carriers stated they also tend to avoid any shipper or receiver that has strict appointment times and does not offer delivery windows. Drivers felt a major disconnect existed between shippers/receivers and the ELD Mandate. Carriers felt that some places did not care or did not understand the ELD regulation.  6
  7. 7. KEY FINDINGS, CONTD. When it comes to rates, 48% of carriers felt that linehaul rates had increased due to ELDs while 33% felt that ELDs weren't the reason for the rate increase. In our survey results, driver shortage was listed as the biggest factor affecting the market and rates currently, not ELDs on their own. This shows that the supply curve has actually moved further to the left, increasing the price due to a lower quantity of drivers, and therefore trucks, available. Some comments suggested that there needs to be an industry-wide review of HOS regulations to include the 14-hour rule, and some drivers felt that lawmakers are out of touch with the regulations they enacted and are not seeing the unintended consequences. 7
  9. 9. Do you feel the ELD mandate has increased or decreased driver safety? 9 60% 40% 153/153 survey participants answered this question of respondents said driver safety has increased from the ELD Mandate of respondents said driver safety has decreased from the ELD Mandate March 2018 responses were very similar, with 61% saying safety increased and 39% reportating a decrease in safety
  10. 10. Comments on safety increase:  “Drivers are only driving their required hours of service and get their right amount of rest and drive time” “By applying certain rules for use of hours of service, drivers have enough time to take breaks during transit, which allows them to separate the time behind the wheel, and therefore well-rested drivers, less pressure and stress.” "ELD allows us to keep drivers fresh and drivers do not overrun providing us a more efficient fleet." “There is no pressure on the driver or company to complete loads that do not fit into the hours.” "Drivers are more rested, less fatigued, better awareness." "Safer because they (truckers) drive less miles."10
  11. 11. Comments on safety decrease:  “Some drivers are required to drive when they normally would be sleeping because the log started already." “Drivers feels pushed to drive faster and unsafe, pushed by the driving time and pickup/delivery apts.” "Drivers are worn out because they are trying to beat a clock to get to their load on time. If trucks are mandated the shippers and receivers should be as well." “Drivers are having to drive whether the feel good or are tired instead of being able to drive a little and rest along the way... once ELD is started driver must run hours out.” "They can no longer determine when to leave, when to take a break, sleep, eat, etc - especially during bad weather, its now a computer telling the driver when to do his job, sometimes causing drivers to rush to try to "beat" the clock."11
  12. 12. have Your rates increased or decreased in response to the ELD mandate? 12 said rates have increased said rates have decreased said there has been no change specified other reasons/results 48%  12% 136/153 survey participants answered this question  34%  6%
  13. 13. Comments on rates: “Rates have increased due to more factors than ELD. A major reason, in my opinion, is driver shortage in this market. Makes it harder for us carriers to fulfill demand.” “I think the number of trucks needed has increased due to it.” "Increased but only B/C of increase in driver wages and a hard market for trucking insurance." “There might have been a slight change but it is still too early to truly affect us.” "ELDs do not have an effect on rates." 13
  14. 14. How long will you wait at a shipper to be loaded before pulling your drivers? said they will not wait said they'll wait for 0-2 hours said they'll wait for 2-4 hours said they'll wait as long as it takes said other (see comments) 1%  32% 14 136/153 survey participants answered this question  37%  17%  13%
  15. 15. Has your answer to "How long will you wait at a shipper..." changed since the ELD mandate? 15 54% 46% 136/153 survey participants answered this question said yes, it has said no, it hasn't
  16. 16. Comments about wait time: “Giving 2 hours after appointment time. If they do not start loading or have dock assigned we're out.” “Depends on the reason for the wait." "Every shipment is circumstantial .” “4-5 hours.” "Will wait as long as detention is available." "Depends on transparency of brokerage and situation." "1-2 hours before detention starts. If shipper is abusive and uses the entire free time, every time, then we will no longer give free time, detention would start at the door."16
  17. 17. Are there any shippers or receivers that you refuse to go to? 17 said yes said no 80%  20% 136/153 survey participants answered this question Has your answer changed since the ELD Mandate? said yes said no 44%  56%
  18. 18. Comments on Shippers Drivers Won't Go To: “One that takes forever to load/unload." “Loading/offloading time that takes too long that eat into drivers HOS.” "Not driver friendly. Will hold you up for 1 pallet for hours." “Too long for unloading/loading. Strict appointments.” "Some shippers take all day to load and treat drivers poorly." "Either due to long delays of getting trucks loaded/unloaded and/or an area a semi is not compatible to get into." "Really strict places where they do not take even 30min late after apt, with those driving hours every construction, crash or traffic jam will result in being late for delivery, and sometimes they give us apts after 2-3 days to a week later" "Sometimes you have to wait longer than 3h and that may affect the service quality, and the driver may lose one day or get stuck somewhere " 18
  19. 19. Comments on Shippers Drivers Won't Go To: “Locations that are known to have little to no regard for a driver's HOS are no longer serviceable." "We monitor unload times at shippers and receivers and avoid going to ones that have excessive delays." "Shippers/receivers or brokers that take too long, lie about appointment times, but mainly - take TOO LONG to do the smallest job. its all about the hours and efficiency." "Anyone that can't unload or load on-time, why go to them and waste hours. Time is money now." "Places where they detain drivers too long, issues with freight getting rejected." "If a place has a bad reputation of holding drivers 4 to 6 hours we will not go." 19
  20. 20. Comments on Shippers Drivers Won't Go To: “Owens Corning takes forever to load, Kraft is insane, Piggly Wiggly takes forever.” “Grocery warehouses.” "Most Grocery warehouses due to abuse of wait time and any shipper that continuously abuses free time." "Some "Mom & Pop" shippers take too long to load our drivers and it affects their HOS." “Walmart. Kroger. Pepsi. Coca-Cola. SuperValu. Dollar General. Aldi. They take longer to unload/load. Hard to get paid for detention. Get drivers into trouble. Screwing up the planning and the rest of the drivers week." "Wakefern facilities in NJ, Goodman/Daiken Waller, TX; C&S Wholesale Chester, N.Y. Detention is always very difficult to obtain and even when it is received it does not balance the cost and overhead/profit loss from the time spent on the shipment." 20
  21. 21. Comments on Shippers Drivers Won't Go To: “UNFI Moreno Valley. Too many bad experiences at this facility." "SafeWay always takes 4-8 hours to unload. "C&S is top of the list. Others fine for late deliveries (UNFI) and we cannot guarantee on-time delivery with an ELD." "Meijer, Kroger, used to be Walmart but they have improved. Kraft is dependent on the load." "Kroger, Amazon - it's a real struggle to get loaded/unloaded at places like these. It takes from 5-6 hours to 2-3 days..." "Target, Walmart" 21
  22. 22. More than 90% of Zipline Logistics' customers deliver into retail and grocery facilities, therefore carriers surveyed are representative of this demographic. Mention of popular stores and distributors showcases how difficult it has become for shippers of consumer products to deliver product on-time and at a reasonable price. A select population of drivers are now unwilling to go into locations such as Kroger, C&S Wholesale, and UNFI because of debilitating wait times. If this issue is to be solved, shippers AND retailers will need to improve their speed of operations and better cater to the needs of truckers.  22
  23. 23. Since the ELD mandate, do you prefer shipments with lengths of haul that are longer or shorter than 500 miles? 23 15% 48% Prefer longer than 500 miles No change in preference Prefer shorter than 500 miles37% 137/153 survey participants answered this question Small Fleets (30 or fewer trucks) Large Fleets (31 or more trucks) 24% 56% Prefer longer than 500 miles No change in preference Prefer shorter than 500 miles29%
  24. 24. Fleet Size: Since the ELD Mandate... 24 34% 21% 153/153 survey participants answered this question of respondents said they have expanded their fleet size by adding more equipment/drivers of respondents said plan to expand their fleet size within the next year of respondents said they have decreased the size of their fleet of respondents said they have not and do not plan to increase or decrease the size of their fleet 10% 29%
  25. 25. Comments on fleet size: 25 "Lost drivers due to the ELD mandate, many retired and did not want to mess with it." "Expand as conditions will allow." "Would increase if we had drivers." "Trucks have left/retired, trying to build truck volume back up." "Have done less loads." "Good Drivers are hard to find." 6% of respondents said OTHER
  26. 26. Do you currently run any trucks manufactured before model year 2000? 26 said yes said no 31%  69% 142/153 survey participants answered this question
  27. 27. 27 Respondents who operate trucks manufactured before the model year 2000 reported that they owned the vehicles prior to the ELD Mandate. Similarly, respondents reported that they do not plan to purchase older models and are instead interested in purchasing new trucks with enhanced safety technologies and features.  This finding is significant because trucks manufactured before the model year 2000 are exempt from the ELD Mandate. Drivers are not willing to sacrifice vehicle enhancements to avoid ELDs. 
  28. 28. What do you think has the biggest effect on the market and rates currently? 28 62% 8% 130/153 survey participants answered this question Could choose more than one response driver shortage equipment shortage fuel costs government regulations (including ELDs) 33% 48% operating costs (maintanence, insurance, etc.) equipment capital costs other 35% 13% 8%
  29. 29. Have you experienced any technical issues with your actual ELD that prevented you from driving even though you were good on hours? 29 said yes said no said other 45%  51% 4% 134/153 survey participants answered this question
  30. 30. 30 "I understand E-logs are to help with safe transit, at the same time, without same strict rules and regulations on shipper's and receiver's end, the only ones who are suffering in this industry are the drivers." "Makes my drivers have to stay out more than they should have to. Taking a 10 hour break when you are not tired is a problem. Taking away from their family's and their pay, having to stay out longer on just one load." "ELD makes booking and planning load impossible sometimes." "As a company with a smaller fleet, the ELD mandate has us being more picky with what and where we load." "Working great for our company." "A nightmare. tons of politicians who are clueless about the actual safety and trucking business. its all about money, nothing to do with safety, or improving the actual trucking." General Comments about how the ELD mandate has impacted your company...
  31. 31. 31 "It hasn't, we have been on it before the mandate." "None. We have been on ELDs for 5 years." "Takes much more planning on driver and company's part." "Slowed us down 20-25 percent." "Decreased productivity about 11%" "Made customers load and unload quicker." "We have had to turn down several loads because the driver didn't have enough hours." "Miss a lot more appointments and have to reschedule." "Make us reduce travel radius." "ELD is cut and dry but trucking isn't." "It's better now.. The filed is even with all the carriers.."
  32. 32. 32 "Encouraged Drivers to open their minds to change. Change is good." "Less freight, more time-consuming." "Driver frustration increased initially but has waned over time. We can work well within the limits and choose loads that can be flexible on ETAs so there is less pressure on HOS. We hired more local drivers to pick up inbound loads and avoid wasting OTR driver time." "it really hasn't caused any issues for us since we were on them prior to the 2017 deadline." "ELD in some lanes requires an extra day for delivery." "Decreased drivers' gross pay. Many drivers quit and took up new careers." "Lost drivers, lost revenue, trips are longer in time, no compensation." "Basically, it sometimes makes it more difficult to make scheduled appts, if delayed at previous location." "We had to get more drivers, more trucks to keep up with others. More work for same profit."
  33. 33. 33 "We have to be more choosey on the loads we take and the destination. It's a lot more planning with drivers and watching their hours. Our drivers are now sitting at times when they could drive before because they are no longer able to control their own times."  "Ease and convenience of calculating drivers hours." "Overall it added stress to an already stressful industry." "I feel an actual study should have been conducted before a widespread mandate was put in place. On paper, I see how some would think the mandate would make the roads safer, but some of the exemptions make me wonder what the purpose actually is. ELDs were supposed to make the roads safer, but when cattle haulers and agricultural exemptions are in place I think that the commodity being hauled is more precious than the safety of others on the road." "It has made us best less flexible and dynamic in providing services outside of the focused scope of our business." "More safety." "Just takes longer travel time."
  34. 34. Have any questions? 888-469-4754 2300 W. 5th Ave. Columbus, Ohio 43215 CONTACT ZIPLINE LOGISTICS: