How Electronic Logging Devices are effecting Freight Rates - Loadstar

How Electronic Logging Devices are effecting Freight Rates

Technology is dramatically changing the way the trucking industry operates. From tracking freight to managing hours of service, technology plays some role in every haul that is transported these days. As a freight shipper, trucking tech directly affects the way you manage your shipping needs. One great example of an industry-transforming trucking technology is the use of the electronic logging device.

 

Thanks to the newly implemented Federal Motor Carrier Safety Administration ELD mandate, this technology is making major waves in the trucking industry. Some would even say it is disrupting the industry. Here at Loadstar Transportation, a flatbed trucking company, we want to clear up any concerns you have about how the Electronic Logging Device mandate will affect your flatbed trucking company freight needs.

Managing Hours of Service

The biggest change that is going to occur with the use of electronic logging devices is the time it takes to deliver freight. The new logging device records hours of service for all commercial truck drivers using a wireless connection combined with an electronic tracking device. These logs record the on duty and off duty time for truck drivers as part of their hours of service. According to hours of service rules, drivers can only drive for a certain amount of time before they need to stop for a resting period. One of the primary reasons the Electronic Logging Device mandate was passed was to cut down on the number of falsified logs on record. Previously with paper logs, drivers could change their paper logs to change their HOS times. Reasons drivers would do this vary from driving over their allotted time to recouping lost driving time due to severe weather. Now that has changed with ELDs.

 

Tracking technology monitors off duty and on duty time for drivers. When a driver turns their engine off, their off-duty time begins. More importantly, there is no way to change their driving time to meet the hours of service rules. What this means for you as a shipper is the possibility of extended transit times. If a driver has used all of their on-duty hours for a period, they are required to rest for the off-duty time. For routes that run from 600 to 800 miles, drivers can no longer complete a delivery in a single day.

Change in Rates

The longer it takes for your freight to reach its destination, the more money it costs you. This is based on how long a driver is tied up to manage your shipment. The loss of productivity combined with technology expenses associated with ELDs are expected to drive up freight rates. While the jury is still out on this one, analysts are predicting anywhere from a three to five percent increase in shipping rates. As a shipper, you want to be prepared for potential shipping rates as these will affect your business.

Here are some ways you can be proactive in this situation:

  • Increase lead times and be more flexible with scheduling freight delivery times. 
  • Allow drivers to park at your facility for off-duty hours if needed rather than sending them out of the area to find truck parking.
  • Analyze your routes that have between 400 and 800 miles to determine how the ELD mandate will affect the delivery. 
  • Stay up to speed on the latest ELD regulation news by visiting the FMCSA website on a regular basis.
  •  Choose an ELD Compliant Carrier

Another way you can manage with the ELD mandate is to choose a freight company that is compliant. Here at Loadstar Transportation, we are a Landstar agent ready to assist you in your search for flatbed hauling services. Contact us by calling 877-851-1539 to request a quote on freight services.

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