Freight supply chain facing December electronic logging mandate

A federal mandate that truckers replace log books with electronic driver-time tracking technology has been looming over the nation’s freight and service supply chain for seven years. Still, the December 18 deadline has some sectors of the economy, particularly the trucking industry and their customers increasingly anxious.

“Many truck fleet owners, drivers, and their customers are starting to get antsy as the deadline approaches,” says Rick Todd, president and CEO of the South Carolina Trucking Association (SCTA). “A large percentage of businesses that use trucks have waited until the last minute to act, and it’s going to cause problems for them and their customers.”

The mandate requires truck fleet operators and drivers replace log books they’ve been using to manually record drivers’ Hours of Service with an electronic logging device (ELD). Todd says that while the driving-time limits won’t change, the manner in which they are tracked will. Todd says technology will foster better compliance with the existing rules, and give both fleets and drivers a tighter, more efficient way to monitor and self-enforce the rules. “So while nothing’s changing with respect to the driving-time rules, there are substantial equipment, training, and operational factors that will have to be taken into account.”

SCTA is concerned that truck fleet operators who wait too long to order ELDs may have a hard time getting them installed before the December deadline. Backlogs of orders could lead to supply shortages and cause delays in installation and training. Suppliers and early adopters has advised that smooth implementation takes several months, depending on a fleet’s operation. With four months until the deadline, business disruptions may occur for those who wait any longer.

Enforcement of rules is done at roadside and through in-house safety audits by state and federal truck safety officials, who are also wrestling with how they will manage the new system. The rule will be enforced according to guidelines issued by the Commercial Vehicle Safety Alliance, a national organization of state truck enforcement officials. Some stakeholders are hoping for a “soft-enforcement” period, but it’s not something that can be counted on.

Shippers and receivers (truckers’ customers) could find their freight stranded when ELD-less drivers are placed out of service by roadside inspectors. When a trucker runs out of driving hours, he is supposed to shut down, wherever he is.  If shippers do not proactively work with carriers and freight brokers to ensure their transportation partners are compliant with the ELD mandate, goods could be stuck in-route.

Keith Johnson, President of H&J Trucking in Charleston is the chairman of the trucking association, which is encouraging shippers to take a long-term view of how the ELD mandate could affect operations, and change the way they treat truck drivers. “Most industry analysts don’t expect a significant number of the carriers and drivers to exit the field in protest, but if just one half of 1 percent say, ‘I quit,’ there will be an impact from the supply side,” Johnson says. “Some analysts are suggesting this will create a reduction in truckload capacity, and the market is already getting tighter without the ELD mandate in effect.”

Adding to the concern, informal surveys and anecdotal information suggests that slightly more than half of trucking fleets expected to be ready for the rule, and only about one-third were “fully compliant” now. And since the industry is comprised of mostly small operators, it is expected that many are still uncertain as to how to comply with the mandate.

The challenges for those who depend on truckers’ services go beyond the mandate and enforcement. Electronic logging will make it easier for drivers and trucking companies to document instances of egregious detention times at shipper and receiver sites, and coercion of truck drivers by shippers that could lead to significant federal penalties. “A common complaint from truckers is that their customers don’t fully appreciate the restrictions they have to live with, and that unreasonable demands create a host of problems,” says Johnson.

Johnson says this requirement means that truckers’ customers will have to be aware and accommodating of the driver’s time and needs more than ever. “They will have to stop talking about ‘partnerships’ and genuinely engage ways to keep drivers moving, and more efficient with their now fully-visible limited time.”

Johnson says shippers and receivers should take accommodating the driver one step further and train their own workers on how to work with drivers, give them parking and access to rest facilities. “Not only is this going to be important to do this going forward, the ELD will make it necessary if businesses want dependable and efficient service.”

“Attracting good drivers is not just a trucking industry problem, it’s a shipping community problem,” Todd says.  Shippers need to start by reviewing the way they treat drivers. It’s about becoming a ‘shipper of choice’ for the driver and carrier. One way he suggests is to work with carriers to document truck driver hours when they arrive at a facility, and to allow them to drop loaded trailers so they can “bobtail” to a nearby truck stop or hotel or even stay on site if they are running short of time on their duty-status clocks. “Knowing a driver’s hours will allow increased efficiency, which help all involved in the flow of freight and services.”

Johnson hopes the supply chain will be able to adjust in an orderly manner. “We have to support it, and it’s going to end up fine. But in the meantime, it’s likely to be a rough ride – with potentially lots of units being parked on the side of the road. We’ll be needing a lot more public truck parking spaces.”

The South Carolina Trucking Association is a non-profit trade association representing all segments of the trucking industry.  Organized in the 1932, SCTA serves the transportation industry’s interests by providing educational opportunities, compiling and distributing essential information, and conducting aggressive programs of advocacy.