The economic impact of Electronic Logging Devices (ELDs) is felt by shippers nationwide. The performance of ELDs has led to an increase in freight shipping costs. ELDs track the duration of a truck’s route. These devices have led from manual to automatic log entry, increasing the accuracy of driving time and miles driven per truck. Accordingly, the miles driven and hours worked have decreased since ELDs were introduced in the trucking industry. The complications of adding ELDs to the trucking process include ELDs for hauls in the mid-hundreds of miles, which receive an additional day to their in-transit time.
Every logistics trade publication expected trouble in the industry when these new technologies were first introduced. They predicted a loss in productivity and an increase in freight shipping costs. The phased-in use of ELDs proved that they were correct.
While the purpose of the ELDs is to improve highway safety. The Large Truck Crash Causation Study, a national sample of large-truck fatal and injury crashes from 2001 to 2003 at 24 sites in 17 states, inspired it all. Data was collected on up to 1,000 elements in each collision. The total sample comprised 967 crashes, involving 1,127 large trucks, 959 non-truck motor vehicles, 251 deaths, and 1,408 injuries. Each crash involved at least one large truck, resulting in at least one fatality or injury.
The top two causes of accidents involving large trucks were:
- Fatigued drivers
- Excessive rates of speed
The Economic Impact of ELDs
In theory, there should be long-term savings benefits from ELDs due to fewer accidents. For now, however, there is a genuine impact on freight shipping costs. ELDs have caused a drop in freight capacity due to hauls taking longer to complete. If ELDs cause your shipment to require an extra day, that reduces the chance of the truck making that delivery. As a result, fewer trucks are now available, resulting in a backlog of available loads. At the same time, less freight means a greater challenge for shippers. Increased competition means higher freight shipping costs.
3PLS Are Not All Alike
The enterprise level existed both before and after the economic impact. Enterprise-level 3PLs target major shippers by offering services and technology that companies may need or can afford. This can include storage management and total shipping management.
While it may never have occurred to most of our customers that FreightCenter is an independent 3PL, we benefit from that independence every time companies ship with FreightCenter. No, we don’t own any carriers, trucks, warehouses, or freight terminals. We give our customers the best prices and service available.
Small and new 3PLs seek any business they can acquire. They frequently target residential and regional shippers. It’s not unusual for a small and new 3PL to struggle with both technology and customer service issues. Off-the-shelf technology that will do everything a 3PL needs it to do is not readily available. And keeping a customer service team happy while learning in a new industry is not easy for any business.
With over 20 years of award-winning experience, FreightCenter sits between the small and enterprise-level of 3PLs. We develop long-lasting relationships with hundreds of carriers nationwide and thousands of customers across the country. Above all, SMBs ship 1-40 times per month. Our in-house team of LTL, FTL, and Parcel shipping experts puts us way ahead of the pack. This is in terms of customer service. Additionally, our technology provides SMB shippers with free, instant quotes from multiple carriers.
At FreightCenter, we find the best freight carriers for your shipping needs, serving small to medium-sized businesses that ship 1-40 times per month.
More Changes Ahead
The freight industry is constantly evolving. The economic impact of ELDs is just the beginning. There are discussions about increasing tariffs and fuel taxes, which will again be passed on to shippers and consumers. However, what remains constant is FreightCenter’s commitment to securing the best shipping rates for your freight.
Need to ship something? Compare freight shipping quotes from multiple carriers instantly or call FreightCenter at 800.716.7608.
