News

Don’t Get Stung by the ELD Bullwhip

The ELD mandate is playing its part in keeping truck capacity tight.

At the end of 2017, national average spot market rates were higher than contract rates. The high demand for transportation services combined with the shortage of quality drivers continues to squeeze capacity. With smaller carriers and owner operators scourged by ELD mandate requirements, the industry expects to see capacity tighten even further.

Shippers are seeing, and feeling, a “bullwhip effect” from the mandate.

- Kevin Hill, President of CarrierLists
Source: Journal of Commerce

Expect April to have another snap of tightening activity.

The mandate required all carriers to have ELDs on board by December 18, 2017. Full enforcement of the federal mandate begins April 1, 2018, forcing non-compliant carriers to remove their trucks from service.

Carriers who delay implementation (particularly smaller carriers and owner/operators) will struggle to obtain ELDs, get them in place and train their drivers just to stay in business. ELD vendors have been swamped by last-minute orders they can’t fulfill. The industry expects a two-year adjustment phase as trucking companies using grandfathered AOBRD (Automatic Onboard Recording Device) on older trucks struggle to upgrade to ELDs.

Robert Nathan of LoadDelivered told The Journal of Commerce in January that he expects carriers of all sizes to adjust their length of haul and pricing.

Reddaway went all-in for ELD in 2017.

We went all-in for ELD early in 2017 and were fully compliant by December 2017. You reap the benefits! Reddaway remains a consistent and reliable transportation service provider for our customers.

Among our large-fleet customers, Reddaway is leading the way as an early adopter with full ELD compliance across their fleet.

As the leading ELD technology provider in the market, we are very proud to be partnered with Reddaway in delivering state-of-the-art technology and compliance to better support their customers.

- Pat McCaffrey, Chief Operating Officer at Omnitracs

Count on Reddaway to provide safe, reliable, dependable, damage-free deliveries and trust Reddaway to be the “Best in the West.”