Size Matters as Small Fleets Slow to Move on ELD Mandate
When it comes to Fed mandated use of Electronic Logging Devices (ELD), it turns out that size does mater.
A new survey shows 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, according to the authors at Transplace, “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.”
At the same time, 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.
The survey also revealed that drivers have already left the industry as a result of ELDs: As expected, ELDs have caused drivers to exit the industry. In fact, 51 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, one carrier reported losing 50 percent of its drivers. According to another, “We have 110 trucks and lost 29 drivers when we switched them over to e-logs.”
But the impact goes much further. 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).
ELDs have also led to a reduction in 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 hours-of-service (HOS) and logging violations.
ELDs will lead to have some business benefits: While the anticipated impact on the industry has been generally negative, carriers do foresee some 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).
Category: Featured, Management
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