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As hurricane recovery efforts in Texas and Florida continue, and the electronic logging device (ELD) mandate implementation deadline nears, the trucking industry may face some challenges, including a shift in both capacity and rates.
According to industry experts, some who spoke at the recent FTR Conference in Indianapolis, the shift in capacity may be particularly felt in the flatbed segment.
A change in freight patterns as a result of post-hurricane productivity associated with the ELD mandate deadline in December could result in some capacity issues, and economic experts say the adoption of ELDs and impacts from the storm will linger into 2018.
Truckstop.com cited a flux of inbound loads to the affected areas, which resulted in the change of many trucks’ normal duty patterns.
Carriers and truckers can also expect plump rates as a result of relief loads and rebuilding loads. There was a strain on flatbed capacity immediately following both Hurricane Harvey and Hurricane Maria, around mid-September, as manufacturing loads were on the climb. However, rebuilding efforts are ramping up in Florida and Texas so flatbed demand will be on the rise.
Car haulers will also be in high demand due to the millions of vehicles destroyed by the storms.
All of this coupled with the ELD implementation can result in an impact in the supply chain. On December 18, 2017, all commercial motor vehicles will be required to use ELDs as opposed to paper logbooks.
How quickly the ELD mandate will have an impact is unknown to many, but carriers can lose some productivity as they adjust to comply with hours of service laws. Long-hauls exceeding 500 miles and wait times at loading docks could have a new meaning once ELDs are implemented, also affecting shipper’s costs.
Currently, just under 50 percent of the industry have adopted ELDS, so any drop in productivity is still entirely uncertain, but it could be a loss up to 3 percent.
According to the FMCSA, the ELD mandate was put into place to help reduce the number of accidents involving commercial vehicles.
