How are carriers responding to ELD mandate?

Survey shows disparity by fleet size, reduced HOS violations

Posted September 19, 2016

A survey released on September 14 identified that responses to electronic logging device (ELD) implementation and expected impact to capacity and utilization varied heavily by fleet size.

The Electronic Logging Device survey, conducted by Transplace was done to gain insight into implementation preparedness and expected impact for transportation carriers. It included results from more than 400 carriers of various profiles.

Key observations from the ELD Survey include:

  • ELD implementation varied heavily by fleet size. The study revealed that there is a significant difference in the amount of implemented ELDs between large and small fleets. Eighty-one percent of large fleets (more than 250 trucks) reported that they had achieved full ELD implementation, with the remaining 19 percent working towards implementation. Conversely, small fleets (less than 250 trucks) have been much slower to integrate ELDs, with only 33 percent having fully integrated ELDs into their fleet. Another 29 percent have begun the implementation process, while the remaining 38 percent have no immediate plans to begin implementation.
  • Capacity and utilization expected to change, but the amount varies. While most carriers expect their capacity or utilization to be affected as a result of ELDs, 56 percent of large fleets expect their utilization to decrease while 32 percent expect to see no impact from their implementation. Smaller fleets are even more cautious about how their utilization will be affected, with 64 percent expecting a decrease, while 25 percent expecting to see no change.
  • ELDs have led to a reduction in hours-of-service (HOS) and logging violations. Of those carriers that have implemented ELDs, 84 percent of large fleets and 56 percent of smaller fleets reported a reduction in HOS and logging violations.
  • Business benefits of ELDs. Carriers reported several benefits as a result of ELD utilization within their companies, including: improved monitoring (33 percent); better driver and equipment utilization (21 percent); driver convenience (10 percent); reduced operating costs (two percent); fuel savings (two percent); and other (32 percent).
  • Drivers left the industry as a result of ELDs. Fifty-one percent of carriers indicated that they have lost drivers who did not want to operate under ELDs. While most indicated that they only lost a few drivers.
  • ELDs will have a significant financial impact. While all carriers surveyed expect a financial impact as a result, the average financial impact per unit varies: $100-$300 (18 percent); $300-$500 (19 percent); $500-$700 (18 percent); and more than $700 (45 percent).

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