New Regulation = No Capacity = High Rates
The recent ELD Mandate has really taken a toll on America’s trucking industry causing truck capacity constraints, which have also negatively impacted delivery schedules and often led to unanticipated additional cost. Sound familiar?
The ELD Mandate requires commercial drivers to electronically log their hours of service records, which has significantly impacted the way drivers are able to operate and complete their jobs. To view the HOS Schedule and HOS Rules elaborated click here. I would like to share with you some of the factors that are contributing to this challenge and some possible suggestions to help move your cargo quicker.
Expect detention to become a normal accessorial.
- The ELD Mandate will support detention charges as it will impact transit time
Continual Rate Increases
- General rates are forecasted to go up between 5-7% over the next 18-24 months.
No more guarantees in regards to capacity
No more draymen long runs
- Layover fees will become the norm on longer runs.
- Before the ELD mandate, truckers didn’t have to clock wait times. Now that they have to clock wait times, it eats into their total number of miles driven and deliveries.
- The ELD mandates do not apply to 100 mile hauls or less but the drayage community will still be impacted.
- The 450 mile market won’t be as significantly impacted as this should still be a one day move. The moves that are slightly longer than one day, could perhaps be the most impacted. In the past, prior to the mandates, it would have been possible to fudge these runs. Now, that cost could change significantly (50% to 100%) as the second day will now need to be paid for.
- As ELD mandates and other market trends cause truckload rates to increase it is likely that more loads will be converted to intermodal shipments. If cargo and transit times allow for this conversion then customers could hedge against the increase truckload rates.
- Intermodal carriers will need to work hand-in-hand with the ports and terminal operators. Their biggest concern will be keeping the turn times under an hour.
Be flexible when possible
- Avoid set appointment times
- Have flexibility in loading and delivery windows
- Have flexibility in transit time
Consider LTL, FTL, and Volume Shipping choices
- Know the difference between the 3 types of domestic moves and when it may be beneficial to split cargo, etc.
Consider routing international freight differently
- talk to an international freight forwarder about your routing options. What has been working in the past may not be what will work in the future
- It is important to share as much information as possible from the very beginning of the shipment. Find out what is actually important from the decision makers in your organization. Transit time, cost, your clients’ needs? Service providers can only move forward with the information you give and we all know what assumptions do…
- Give as much as lead time as you can when sharing information
- Be empathetic and understanding to all involved in getting your freight to its final destination on time. Capacity is tight. Rates are high and in some instances, such things as severe ice storms are out of the supply chain control
Training & Discussion
Learn about Domestic Shipping Do’s and Don’ts, along with a discussion on the ELD Mandate impacts to our industry. This panel is set up as a question/answer forum where you can submit questions prior to or during the webinar.
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