Electronic Logging Devices - ELD's

[Michael Ludwig]

Well, the verdict is in and barring any further legal disruption, it looks like Electronic Logging Devices for commercial carriers doing business in the U.S. is going to become a reality sometime in the fall of 2016. Personally, I'm so excited I can hardly sit in my chair.
There are many out there lamenting that this is the end of the world as we know it. You're right. It is the end of system that encourages a flagrant disregard for the law, and the safety of others. A system so flawed that the only way the little guy can get ahead is to lie, cheat, and steal.
Well not anymore. We [carriers] will all be playing on the same ball field now. The only thing that distinguishes me from the big guys is the service I offer, and I like that challenge. Even better is the cowboy culture of "Fly-by-Night Trucking Inc" is done and over with. I play by the rules, now the cowboys have to as well, and I like that even better.
Regarded logically, if the big firms can make money playing by the rules, then I should be able to make money playing by the rules. If the big firms and I can make money playing by the rules, then so should the cowboy culture.
Amongst load brokers there is much wailing and gnashing of teeth. Why? Never has opportunity knocked on your door so loud and so hard. If you miss this, you are a fool. Your focus now becomes one of locking up capacity as opposed to trying to steal freight by cutting rates to unsustainable rates. As a matter of fact, it is my opinion that load brokers who continue on the path of rate cutting to enhance growth will die quick and gruesome deaths. Very few, if any, will attend their funerals.
Your logistical talents will be put to the test. You will pass or fail all on your own. Trucks will be all the same, so you can't blame them. They are just one giant pool of equipment to draw from.
All over the industry media you hear drivers decrying that if big brother is going to look over their shoulder they are going to quit and find another line of work. Really? Have you thought about this at all? If you [as a driver] think that you have a better opportunity to make more money for doing less work, and less stressful work, then you must have a couple of PhD's under your belt that you've been hiding, and have been sitting here fooling the rest of us for all these years. Your AZ, Class 1, or CDL permit just became a license to print money. The day of the $100,000.00+/year company driver is upon us. Mind you this will take a bit of time, but not that long. As was so aptly put by a well respected member of this forum "The driver is King".
Shippers and receivers are no longer going to be able to say "I know it takes 8 hours to go from point A to Point B, and I don't care if you haven't slept in the past 24 hours, I want it done in 7 hours or I'll get someone else.". The only difference between ABC Trucking and XYZ Freight is the name on the door. Every carrier now plays with the very same rule set, and there is no cheating allowed at all.
The new pecking order;
Drivers rule.
Carriers with drivers command.
3PLs with access to carriers with drivers, and other modes of transport, will thrive.
Shippers, receivers, load brokers, and 3PLs with access to carriers with drivers will succeed.
Everyone else will dry up and blow away.
The consumer will pay for it all.
I have to admit that I am truly excited about this historical change in the transportation industry. Almost as exciting as the day the wheel was invented

 

[ShawnR]

A1 good post!

 

[Mario]

I think you hit it right on the head!!!!!!!!!!!!!!!

 

[bubba-one]

I thought all drivers were in this business for the fame and glory, not the pay. I do agree that driver pay is more than past due. Unfortunately it still comes down to supply and demand, as drivers get treated as a commodity. I have say to Micheal Ludwig that I do have 2 driver's with a PHD's and hope that they haven't fooled anyone here.

 

[chica123]

Michael, I can almost feel you jumping out of your seat with excitement! What a thrilling post! I really mean that. I am just sceptical that rates will soar like we all want them to. I felt like when the new HOS came into play last summer, everyone said the same thing. I think that Bubba's point about supply and demand will trump. And with so many large companies already using electronic logs, I just wonder if it is going to make such a huge change in available drivers. I'll wait and see on the edge of my seat like you!

 

[Michael Ludwig]

Valid points for sure. When the new HOS came in, depending on your operation, I suspect you were witness to somewhere between a 5% and 10% loss in production. Those numbers won't change with ELDs ... they won't get any better and they won't get any worse. What does change that makes the big difference is that we are all, whether you are 1 truck or 10,000 trucks, playing on a level field. There will be no measurable difference between ABC Trucking and XYZ Freight.
All of us small/medium Canadian and U.S. carriers were always caught between the big firms and the thugs around the corner (Fly-by-Night Trucking Inc.). We had to cheat to stay ahead of the cheaters, and we had to cheat (albeit less) to scoop freight from the big firms. Between the proverbial rock and hard place so-to-speak. What effectively happens now is that all trucking becomes one giant pool of equipment to be sourced from, all with the same static service standard.
As for the numbers of drivers, that's only going to change as the industry attracts more drivers. Someone mentioned that they were concerned that every cowboy that had an AZ license, and could hold a steering wheel would jump back into the business. I really don't foresee that happening in big, or appreciable numbers. Most of those people got out because they couldn't qualify for the U.S. for one reason or another, or they wanted more home time than this industry could give them. Regardless of how much a carrier pays, if a driver doesn't qualify for the U.S., he, or she, simply isn't going to get in.
And ... have you looked at what some ELDs can do for your business? Location monitoring, geo-fencing, in-cab scanning, printing, training, equipment monitoring, fuel tax, and on, and on. Customer service standards out the wahzoo. The reduction in days-to-pay alone is worth the cost.
I know the first thing everyone brings up is cost, cost, cost. Well, cost it out. I did, and what I come up with is that it is actually cheaper to run Peoplenet Blu2 on a monthly basis than it is my Blackberrys (or is it Blackberries???). When it comes to equipment cost, even the best smartphone or superphone is only going to last 18 months, and at $800 per unit, that's $2,400 you will have to spend in 5 years. Peoplenet Blu2 is about $2,500 and will easily last 5 years.
(I am not endorsing Peoplenet Blu2. I am just using it as an example because it is our chosen route for ELDs and on board computers).
Do yourself a favour and take the time to examine ELDs, on board computing, and take a close look at what they can really do for your business and the industry as a whole. I think you'll be pleasantly surprised. In my opinion, and this is strictly my opinion, its the difference between pushing your rocks along on logs and putting them on wheels.
The biggest challenge will be to 3PLs and load brokers. They're getting it from both sides. Corporations are getting bigger, and more and more, they want one single point of contact. Generally speaking, they have had enough of logistics and are outsourcing its management in ever increasing numbers. The 3PLs and L/Bs that can put a program together to keep a customer's goods and a carrier's equipment moving will be successful. The ones that are only offering one-way freight, and spot market loads, will find it harder to attract quality customers and carriers. ELDs will take care of the carriers that don't measure up putting even more pressure on 3PLs and L/Bs to be successful. My advice, and it's free so it's worth exactly what you pay for it, is for 3PLs and L/Bs to lock up your carriers now. Do whatever you have to do to get them on your side, before they go somewhere else and you can't get them back.


@bubba-one ... if you have drivers with PhD's then that should really tell you something about the potential of this industry shouldn't it ... those people typically are pretty bright

 

[bubba-one]

Yes Micheal, you shouldn't be worried for what "ELDs can do for your business? Location monitoring, geo-fencing, in-cab scanning, printing, training, equipment monitoring, fuel tax, and on, and on" Your goal should be to train your people to work smarter with all the technology, a higher per mile rate, equals less wear and tear on equipment and lowers your operating costs. I hope that every driver out there has a PhD because they want to be smart operators, not because they got burned out at a former profession.

 

[snafu]

With eld carriers will now be able to pay drivers hourly for all their time including daily overtime pay right?

Right????

Ya... I'll believe it when I see it.

What I know is.... Until drivers see proof more will say screw it because the cheap pay rates most carriers are paying won't be worth the bs.

 

[The Capon]

I am not sure that we will get the results we all want. ELD's will only work if there is enough enforcement to catch the cheaters. The cheaters have been with us for as long as I can remember and I've been in this business for 30 years. Sad to say that too many people will continue to take the easy way out and screw the rest of us who want to run legal. Not sure if I will ever see a level playing field. I do hope that I am wrong about that!

 

[lowmiler88]

Capon they are talking about downloading your logs automatically as you cross the scales and even being able to do it vehicle to vehicle as you and the officer are travelling down the highway in separate vehicles. This won't happen right away but I betcha it will be faster than we think. Why would you object to this if you are running legally and it keeps you from crossing the scale at all, the only reason to complain would be if you plan on running illegally.

 

[The Capon]

Oh, I am not complaining or running illegally. I want the level playing as much as everyone. I was just pointing out my gut feelings that this might not be the leveler everyone is hoping for. ELDs are being used now by some companies and read at scales. At least until there is a problem and someone gets a call at home to help fix the software problem. As with all things to do with The Government there is a start date then years of dealing with the carp until things get to work, somewhat!