By AJ Baadsgaard
How good can you forecast the weather? Does your knee start to hurt? Can you feel it in your bones? For most people that is a “no.” It’s been like that lately with rates for moving freight throughout the nation. A select few truly have their finger on the pulse and the others seem to be throwing darts at a board.
What is the cause? I think it’s ELDs.
Electronic logging devices (ELDs) have been mandated for all trucks across the nation. These devices are to be used by drivers to create log book records and replace the paper logs that drivers used to keep. The premise is that if the drivers are using the log books correctly and obeying the rules for their hours of service, they will be more alert and attentive while driving. There is logic to it and the lawmakers see the value in it. However, it seems to have put pressure on the entire industry in general — from shippers to trucks to brokers. As a limited-information advocate, I decided to reach out to some trusted sources that deal directly with the changes daily.
The first company I spoke to told me about one of their drivers who had been driving for over 20 years. He always did his best to obey the hours- of-service laws, but before the ELDs were implemented, you could split up the time differently. He would do this so that he could drive during the day as he preferred to do. He felt he was most alert and safest when he did so.
Once the ELDs were implemented, he was forced to drive overnight to not lose a full day of work. He took his 10-hour break during the day. As a result, at about 3 a.m. one morning, he fell asleep at the wheel and ended up totaling the truck, trailer, and the load he was hauling. Subsequently, he lost his job. This happened immediately after taking the mandatory 10-hour break the ELDs required. This company strongly dislikes the ELDs.
Another company has had drivers be within just a few minutes of being able to go on duty and accidentally start their “on-duty” clock early, which results in the driver being forced to take another 10-hour break in his log book. They currently do not have a way to adjust it. With paper logs, things could be adjusted easily and work out for everyone. “I’m not talking about hours; I’m talking about accidentally bumping it three or five minutes early when they are checking to see if their hours are ready to go. It put the truck out of service for 20 hours. It has happened multiple times,” the owner said.
I spoke with yet another company who stated that they are losing drivers because drivers aren’t getting time off at home and are having to spend even more time away from the families and friends than they were before. They have to take the 34-hour resets that are required while out on the road.
A local company here in Salt Lake City said they have been working their local fleet to the bone to ensure that the trailers are always ready to go and loaded for the over-the-road drivers. They have some simple 500-mile runs to Denver and back that shouldn’t be a problem legally, but because they can’t break up the clock at all, the drivers have to ensure that they use the facilities, get a snack or a drink, then park at the receiver so they don’t start the on-duty clock until after they are unloaded. They must sleep as close to the receiver as possible so that they don’t have to count that time. If they stay at the nearest truck stop, which is about an hour away, they will have the facilities and niceties that we all enjoy — like a bathroom, shower, something to eat, a movie, etc. — but then they go and unload, spend four hours there, drive to a different location to load and have to take another break at times before getting home to Salt Lake City.
“It messes with their home time,” the owner said.
She asked me, “How many hours a day do you work?”
I replied, “Quite a few, but not all sitting at my desk.”
She said, “Exactly. We are trying to educate the customers that those hours loading and unloading are precious. It’s not like the good old days when you could clock out if you weren’t working. They are literally sitting at their 'desk' doing nothing until they can drive again. If they sit there too long, they lose money because they are paid to drive and if they can’t clock out while they get loaded, it cuts into their money-making time.” This company has also “had quite a few drivers hang up the keys, because they are 'old school.’”
As a freight broker, I excel at being able to make sure that trucking companies are loaded and unloaded in a timely manner and have a fair rate given to them. Every effort is being made to ensure that the customers understand the need for effective scheduling of loading and unloading times and how precious those hours are. We do our best to impress upon the shippers and receivers that they can no longer take advantage of the money-making potential that the trucks have.
We are fighting daily to further this understanding in an industry that is struggling to maintain a sufficient supply of product to the consumer while battling a major driver shortage. We keep a good pulse on the markets and do our best to forecast the best pricing for all involved. In the end, if this trend continues, I believe that the result of all of this will be a complete market shift upwards in price.
My two cents: The industry was due for this shift with rising prices of equipment and fuel and I believe ultimately this will end up costing the consumer more. Again, that is my opinion and I am not an economist. The true outcome will only be determined by time.
AJ Baadsgaard is a partner at Performance Logistics LLC and is acting as the director of account management. He began in the transportation industry in 2011 and has worked in brokerage for the past seven years in many facets of the operation.