Sunday, April 1, 2018, marked the start of the enforcement period for the electronic logging mandate that went into effect onof last year. Drivers will now be placed out of service for a violation of the ELD mandate and points can be levied against their CSA score for non-compliance. In extreme cases, drivers can even be assessed civil fines if they are found to be in violation of the new mandate.
While most of the larger carriers were already in compliance with these regulations, some of the smaller trucking operations that support the drayage business were not. This has led to a decrease in overall capacity available to shippers, and has increased the cost of transporting goods over the road. A significant portion of this increase is going directly to the driver as companies attempt to recruit and retain the most qualified employees. A survey conducted by the American Truckers Association found that driver salaries have increased by 15-18% since 2013, with most of this increase occurring in the past year. The next month will paint a clearer picture of what to expect for the remainder of the year, but most prognosticators anticipate that trucking rates will continue to rise rapidly as we head into peak season.
In addition, trucking companies are placing increased emphasis on loading delays as a means of increasing the productivity of their trucks. Any time lost at the shipper’s facility eats into drivers’ hours of service, and to compensate, many companies are limiting the amount of free time offered and/or increasing detention charges to shippers. Expedited loading operations have the potential to save shippers considerable sums of money in the very near future.
We will continue to keep you informed of any new information we have on the topic as soon as it becomes available. If you have any questions regarding the recent ELD changes please do not hesitate to contact your local Tranz-Global Xpress representative.