Are you ready for the impact of ELDs on your private fleet?

June 23, 2017 Comments Off on Are you ready for the impact of ELDs on your private fleet?

The Electronic Logging Device (ELD) mandate will soon impact the shipping industry.* The rule requires drivers to shift from paper to electronic logs, eliminating the potential for drivers to complete a delivery after their daily hour limit has ended. With estimated millions of drivers currently using paper logs, this change will affect more than the transportation sector. Companies could soon experience missed deadlines, declined customer service, and tightened resources.

Implementing an ELD program can be an overwhelming process. Before you invest, consider these challenges:

  • Productivity fluctuations in businesses ELDs will hold drivers to a strict operating hour limit. Drivers may be forced to miss a delivery window even if they’re close to the destination. Shifts in productivity could affect your customer service levels.
  • Implementation and maintenance costs Devices range from $200 to $2,000+ and a service subscription per device. These costs can mean big bucks for a business implementing a company-wide program. Technology is also quickly outdated and requires frequent upgrades. Businesses may find it difficult to justify the investments required.
  • Learning curve for more than drivers There’s more to implementation than driver adoption and training. Transportation managers will be responsible for overseeing all approvals and corrections. Time spent training and supervising adds up and distracts from your business goals.
  • Necessary utilization strategy To avoid costly fines and delays, companies will be responsible for ensuring a device is working properly and planning for issues that may arise. Without a functioning ELD, companies can’t legally facilitate deliveries. Businesses could incur huge liabilities if a fleet is operating illegally and involved in an accident.
  • Problematic device selection process The government agency steering the mandate isn’t verifying an ELD’s compliance, so companies are forced to rely heavily on the manufacturer’s claims. If a device doesn’t meet the mandate requirements, companies could be on the hook for replacing those devices and subject to additional fees.

If you’re already feeling the pressure of choosing, purchasing, and maintaining ELDs, there’s an alternative – J.B. Hunt Dedicated Contract Services (DCS). We have transportation experts on staff to manage your fleet and easily conquer hurdles. You can seamlessly transition to ELD-equipped trucks, so your customers won’t experience service disruptions.

ELDs are just the latest strain on the private fleet model. Hiring and retention issues, operating risks, equipment costs, insurance premiums, and federal regulations are driving companies to outsource their fleet.

Why stress when you can outsource the hassle to DCS? To learn more about how ELDs impact your business, contact us at dedicatedsales@jbhunt.com or 1-800-325-1068.

 

*The ELD Mandate will apply to most drivers operating a tractor trailer, however, there are some exceptions as to when and if a driver must comply. For more clarification, read the final rule .
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