ELD Mandate: D-Day or Soft Landing?

The ELD Mandate is just days away.

In the two years since the final ELD rulemaking was announced, December 18, 2017 was seen as a D-day for trucking, with predictions of drivers hanging up their keys and loaded trucks stranded at inspection stations a week before Christmas, put out of service because they lacked ELDs.

While the effects of the mandate are still to be seen, there's reason to believe December 18 won't be the crunch date it was once predicted to be. Here's why:

  • Out of service violation postponed - In August, the Commercial Vehicle Safety Alliance announced that trucks lacking ELDs won't be put out of service until April 1, 2018.
  • Hit to CSA scores postponed - In November, the FMCSA announced that drivers caught without an ELD won't get points against their CSA scores until April 1, 2018. This too was significant because even if a truck was not placed out of service, the threat of poor CSA scores might have compelled carriers to comply.
  • Rates are at multi-year highs - It's been a long time since rates have been this high, so even independent drivers who may have considered leaving the business when the mandate was first announced, may be lured to stay while rates remain high. In fact, last month's monthly average rate for vans and reefers hit their highest mark in more than three years.

Van rates are currently at their highest point in more than three years. Source: DAT RateView.

When will capacity hit occur?

All this is not to say that the ELD mandate won't have any effect on capacity. It could just come at a later date. "It will take time for the federal dollars funding enforcement of the mandate to trickle down to the states," said Bob Poulos, CEO of the fifth largest expedited fleet in the country, in an interview in the FreightWaves newsletter. "We expect many noncompliant carriers to slide under the radar for 6 to 7 months."

Targeting slowpoke shippers

Some of the impact of the ELD mandate has already occurred. Trucks.com recently published an article titled "ELD Rule Spurs Carriers, Truckers to Drop Slowpoke Shippers." It highlights how trucking companies are creating "shipper of choice" programs that prioritize preferred customers. It says that carriers are "becoming less tolerant and dropping shippers that slow down freight movement."

An ELD Solution for Carriers

DAT researched ELD providers and selected the ELD made by KeepTruckin as a top model that is easy to use, affordable, and meets FMCSA specifications. Here's more information about the KeepTruckin ELD that you can share with carriers, including an informational video and an option to request a demo.

Related Content

How Will Brokers Know if a Carrier is ELD Compliant?

Seidl: Brokers Can Educate Shippers on ELD Mandate

How Freight Brokers Can Ease ELD Impact



Pat Pitz

Pat Pitz is the editor of the DAT Solutions freight broker newsletter. He has nearly 20 years experience as a professional writer and editor. Before joining DAT, he spent 8 years at a Portland advertising and public relations agency, where he wrote newsletters and other content for a variety of high-profile clients, including several in the trucking industry.



Comments

About DAT

DAT operates the largest truckload freight marketplace in North America. Transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights derived from 256 million freight matches and a database of 65 billion of market transactions.

The Original Load Board - Trusted Since 1978

The company was established in 1978 as the Dial-A-Truck (DAT) load finder service at Jubitz® truck stop in Portland, OR.

TIA
OOIDA
CSCMP
MATS