Latest edition of my monthly blog on the trucking and transportation industry

1. Vol. 4, March 16, 2018
From the Eagle’s Nest
ELD IS for me?
ELD mandate is national news now, but many people forget when it was first introduced as a mandate for
all commercial carriers versus just an option that only large fleets could really afford or justify using. In 2012, the
“Moving Ahead for Progress in the 21st Century” bill otherwise known at MAP-21 was enacted and
signed into law by Barack Obama on July 6, 2012. It included funding measurements for highways,
as well as, provisions for the FMCSA to require the use of electronic logging devices on all
commercial vehicles. We won’t get into the reasons for this as I know we all have our opinions as
to why all of the sudden this was now a requirement versus an option to the paper log. Regardless
of that, back then they realized the financial strain this would put on sma ll carrier fleets and
owner/ops. They allowed the use of multiple devices including ones that could be downloaded on
your smart phone or tablet to record hours. Just as long as you were using an e-log that was
compliant with FMCSA guidelines, you were okay. Carriers had until Dec. 2017 (a full 5 years) to
become compliant…most did not.
Let’s fast forward to late- 2017, now we are getting close to that December 18 deadline
and we start hearing how all of these truck drivers are going to leave the industry which would
strangle the transportation sector across the US. This mass “exodus” concerned everyone involved
from Coast-to-Coast. According to a DAT survey done a few months prior to Dec mandate, 30% of
respondents, mostly owner-ops, planned on leaving the industry versus implement an ELD. Last
week, DAT resurveyed that same group and found that 91% of respondents had implemented ELDs
and half of the ones that had not implemented one were exempt from the mandate. Even more
shocking is that according to DAT, there has even been a 1% increase in drivers from Dec. 18 , 2017
to Feb 18, 2018.
So what does this tell us? Well, the full story has not unfolded yet. As of April 1, (which is
ironically Easter Sunday, April Fool’s Day and ELD “full compliance” all on the same day), they will
begin to put trucks out of service that are not compliant. Using history to make my prediction, I
doubt we are going to see much change. We have been dealing with a driver shortage in the
trucking industry for years now so that is nothing new and ELD did not change that. ELD did not
change HOS laws, it just made them more rigid. We have seen an increase in rates not necessarily
because there are less trucks on the road now versus last year, but because those same trucks are
now having to take less loads than before to make the same amount of money due to the in -
flexibility of the ELD mandate. Their rates have increased due to this which, in turn, has actually
increased the amount of drivers looking to capitalize on these inflated rates.
Bottom line is that driver shortage is nothing new, ELDs are here to stay and every serious
carrier will implement one by April 1 plus increased rates are the norm now so get used to it. Do I
think we will see rates start to balance out? Yes, overall rates dropped 14% in February compared
to January, according to the North American Freight Index. That doesn’t mean they will ever be
back to what they were in 2009-10, but we will reach a happy medium. The best thing we can do is
to keep calm and keep on truckin’.
Joey Holder, DML, CTL
Director of Satellite Operations
Eagle Transportation, LLC.
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