For Manufacturers, Retailers, Grocers and other supply chain decision makers looking to learn more about converting to intermodal rail
Potential transportation disruptions are looming as increased over-the-road regulations are set to go into effect in 2017. Experts believe these regulations will further impact the already challenged driver pool as well as reduce driver productivity. Throughout the month of December, we will take a look at the pending regulatory and industry events that may impact supply chains in 2017 and will share insights on how your organization can plan ahead.
The existing Hours of Service (HOS) regulation, which limits the hours a driver can legally drive, will be further enforced by the mandated use of electronic logging devices (ELDs) beginning in late 2017.
ELDs are expected to incentivize greater compliance with HOS regulations by providing greater oversight. For those drivers and carriers who routinely (or even occasionally) operate outside the HOS requirements, stricter compliance – including required transmission of ELD data to FMCSA during traffic stops, inspections and other circumstances – will reduce the number of hours of service from their current levels.
ELDs are predicted to have a strong impact upon the trucking industry, in particular the majority of fleets that are classified as small carriers. A study of public truckload carriers who adopted ELDs in 2010 and 2011 revealed a 6 to 8% drop in utilization during the implementation period.
While some productivity may be gained back over time, the ELD mandate will mean less capacity for moving long-haul freight by truck. The reduction in capacity caused by the ELD mandate will only compound the growing driver shortage, making it more difficult to secure reliable truck transportation.
Prepare for tomorrow today and protect your organization from negative impacts and productivity losses. Download our white paper, “DISRUPTIONS AHEAD: A guide to navigating the driver shortage and trucking regulations," to learn how to insulate your transportation network from negative disruption.