If you haven’t heard, the FMCSA just published their final rule in regard to ELDs (sometimes called EOBRs or AOBRD) and compliance for the hours of service regulations.

Carriers and drivers who are subject to the rule must install and use ELDs by the appropriate deadline:

• Carriers and drivers who are using paper logs or logging software must transition to ELDs no later than December 18, 2017.
• Carriers and drivers who use AOBRDS prior to the compliance date must transition to ELDs no later than December 16, 2019.

Industry-wide ELDs are one of the safest things that could happen to protect drivers in the industry.  ELDs provide critical driver information about how many hours they’ve worked and how many hours they have left to do the work.   A carrier’s operations department also has access to all the information they need to dispatch the right driver at the right time.  In a matter of seconds a carrier’s operations department has information on the location of the drivers and also how many hours are available for the driver to give the best service.  The driver has no pressure from operations and as a result is under less stress which equals a better quality life.   The trucking company can also use this data to perform delivery and reaction time analysis.  It is much easier for everyone and helps planners be more accurate.

What is an ELD?

It is defined as an electronic logging device an ELD synchronizes with a vehicle engine to automatically record driving time, for easier, more accurate hours of service (HOS) recording.

The new rule:

• Specifies who is covered by the rule and exceptions to it.
• Provides for ELDs to be certified, registered, and listed on a FMCSA website.
• Includes technical specifications to ensure ELDs are standardized and compliant.
• Includes a phased implementation timeline to give drivers and carriers time to comply.
• Includes provisions to help prevent data tampering and harassment of drivers.
• Creates standard data displays and data transfer processes, making it easier to demonstrate compliance and faster to share RODS (Record of Duty Status) with safety officials.

What is an AOBRD or EOBR?

AOBRD = Automatic On-Board Recording Device has been defined since the 1980’s as: “an electric, electronic, electromechanical, or mechanical device capable of recording driver’s duty status information accurately and automatically as required by §395.15.

EOBR = Electronic on-board Recorder

Both terms are used essentially to describe an ELD.  However, they are older terms used in previous legislation.  The most current term is “ELD”.  Any references to “E-logs” or “ELogs” are generic references to AOBRDs and ELDs.

What are some of the benefits of an ELD?

• An ELD will decrease paper work load for the driver. Hopefully, saving some duty time.
• Save planning time- For carries it should allow them to have real time visibility into a drivers HOS status.
• Precise information- For carriers it should simplify, if not eliminate auditing of paper records.
• Accuracy- It should increase compliance and reduce citations for violations as paperwork errors will be dramatically reduced.
• Load distribution very accurate.
• System is very easy to implement.

What are some of the larger impacts to the industry?

Inherent in any paper tracking system is the ability to game the system.  Not all drivers in the industry are 100% compliant with their log books, as evidenced by the many citations issued for HOS non-compliance.  Some can be chalked up to driver error, but many can also be attributed to drivers pushing the envelope on how they record their time in order to drive more hours.  This creates an un-level playing field for companies and drivers that are compliant within the HOS regulations.  ELDs should make it more difficult, if not impossible for drivers to game the system.  As an industry, we should see greater compliance and hopefully a reduction in crashes due to the greater compliance.

Another impact could be a greater tightening of capacity.  If the industry, presumably, is now removing a whole bunch of illegal non-compliant driving hours from the system; which is a good thing!   However, it’s going to exacerbate an already existing driver shortage issue because now those illegal driving hours have to be replaced with legal ones.  It could drive up driver pay and transportation rates.

On a more positive note, the mandate is estimated to prevent more than 500 injuries per year, save approximately 26 lives annually and reduce administrative expenses. The net regulatory financial savings of ELD implementation is estimated at more than $1 billion industry wide.

What we’re doing at XTL

At XTL, all our trucks are equipped with the system already. We have 400 trucks across Canada.

Our owner operator drivers are not on ELDs yet. They already have the system in the truck; however, it is not active yet. It’s just a matter of time before ALL our fleet is on an ELD.

ELDs are mandatory for all the drivers that join our team under XTL’s new policy with the exception of owner operators, who have until December 2017 when it will be mandatory. At XTL, we have 72 owner operators.  Safety and great service are always our priority.  We are here to help with all your transportation needs.

Uber has certainly disrupted the taxi industry.  eBay and Alibaba, and Amzon have certainly disrupted the on line retail business and sites like Airbnb have certainly disrupted the room for rent industries.  The question I often hear is that will an industry “disruptor” emerge offering some sort of online shipper-driver matching service that completely changes the whole industry?  I think not!

Here are many reasons why I think it will be unlikely that an “Uber-Like” web application will change the trucking industry:

They already exist!

There are a lot of load matching services out there.  Many are free, some are pay for service and if anybody has watched “Shipping Wars”  on TV it’s pretty obvious that the technology already exists to get truck drivers bidding against each other for freight.  While there is a market for this type of shipment, it’s not really changing the whole industry.  It’s mainly small or one time shippers getting bids from freelance truckers.  It’s too much hassle for a regular shipper to bid out each and every shipment and qualify each and every freelance trucker.  It’s just not going to happen.  Plus, regular shippers are generally looking for a trucking or logistics “service” as opposed to just a single shipment.

A Driver is Not Alone

Unlike the comparison to a taxi driver at Uber, a truck driver is rarely a lone wolf.  He’s supported by a dispatch department that helps him coordinate pick-ups and deliveries so that he can do what he’s paid for….to drive.  A driver is also supported by a maintenance department, a safety and training department, not to mention the financial strength of an entire company to fund his endeavors.  Plus, there are customs experts to help him get his paperwork right and off to the border.

Safety is a Huge Issue

While a fender bender in an automobile is still a terrible thing, any minor accident by a truck can result in serious consequences.  Not only does the size and speed of a truck come into play, but the cargo it’s carrying could be dangerous or environmentally hazardous if spilled.  The risk is just too great for any responsible company to bid out shipment by shipment to anyone who will take it for the lowest price.  There is huge corporate liability here.  Any company serious about doing their due diligence in carrier selection will want to do business with a carrier who is providing a transportation service rather than an individual driver.

Supply and Demand

Anyone who’s ever tried to get a shipment on a truck knows that sometimes it’s easy and other times, it’s near impossible!  Different areas of the country and different laneways experience different levels of supply and demand all year long.  The only leverage you have during peak seasons is the regular freight and business relationship that you have with trucking companies to find a way to get a truck to your pick up with capacity to move it.   If you were to rely solely on the open market and a bidding system, with one off loads, your costs and service would go haywire with the ups and downs of the seasonal markets.  It just wouldn’t be a viable year round transportation plan that would work.

Capital Investment

Unlike Uber where pretty much anyone has a car and a driver’s license, tucking is a very capital intensive industry.  A single truck and trailer could cost hundreds of thousands of dollars, not to mention the required training and investment in driver training that is required.  An Uber-like trucking service is going to have difficulty attracting drivers willing to invest in their own equipment  in an industry that’s already short on drivers.  Plus, where the goal is to get drivers to bid against each other to lower the cost, it’s unlikely that the industry would attract new drivers to meet the demand of the industry.

About XTL Transport

XTL with their strong team of experience drivers, logistics personnel and first class, fleet have been providing a remarkable transportation service for over 30 years, and we will continue to do so!  If you would like a free transportation review of your current transportation plan; contact XTL today for a free consultation and transportation review.

Over the last few winters, Mother Nature has not been particularly kind.  Frigid temperatures and huge snow storms caused havoc for many shipper’s and carriers alike.  XTL has published some great articles over the last few years about temperature controlled transport and best practices during heat season.  Here’s a list of the content we have on our blog as a resource.

Extreme Weather Events Impact Logistcs

How to Increase Heated Freight Capacity During Winter

Heated Service vs. Protect From Freeze

Best Practices in Temperature Controlled Transport

“Hot” Tips from our past articles:

1. Keep an eye on the weather forecast.  Get critical orders or supplies moving before the storm hits.
2. Work with your carriers.  There are often huge costs incurred when a shipment gets stuck in a storm.  Be prepared to share the costs within an ongoing relationship.
3. Increase your inventory levels of critical items to ensure you’re not caught short by a big winter storm.
4. Ship heated freight and non-heated freight separately.  You may be able to get two smaller shipments moving rather than one large one when capacity is tight.
5. Consider “no heat” on short runs where your product is unlikely to freeze.
6. Consider blanket wraps to get a shipment moving when capacity is tight.
7. Understand the difference between “heated” and “protect from freeze” service and how this impacts your shipments.
8. Book early during inclement weather.  Don’t wait till the last minute.
9. Be aware of the risk of freeze in all steps in your supply chain; from loading, during transit and during unloading.
10. Get your product off the floor!  Make sure liquids are on pallets if possible.  Separating contact with the floor will prevent heat transfer.
11. Keep product away from the walls.  The closer the product is to the walls of the trailer the more likely for heat transfer to occur.
12. Put the most freeze sensitive product at the front of the trailer.  Especially if it’s an LTL shipment, near the doors gets exposed more to outside temperature.

Other “Hot” Tips for Temperature Controlled Freight

XTL’s TEMPSOLUTION

Just a reminder that XTL specializes in temperature controlled transport.  Plus, we’ve got a specially designed TEMPSOLUTION trailers that are specially insulated and have state of the art temperature control units.  We saw the need clients have for shipping extremely temperature sensitive products in a safe and controlled manner and responded with our TEMPSOLUTION trailers.  Check out our TEMPSOLUTION page for more information, or contact us.  We’re here to help.