Posts Tagged “ELD”

Kenny Lund: “The FMCSA Has Been a Terrible Failure”; The Unintended Consequences ELD, and More

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DSCN0274Everyone is talking about the ELD mandate that goes into effect this December or potentially delayed to Spring 2018. From my perspective, the discussion centers on who will be compliant and who will not. We should be talking about how this simply enforces the Hours of Service (HOS) and its inane “one size fits all” solution that is bad for the industry.

To determine safety based just on the number of hours a driver is on duty and not take into account miles driven, conditions, places to park, loading/unloading procedures, experience of the driver, cross-country vs local deliveries and a host of other variables leads to a system that is unfair to the small cross country drivers who need some relief from the “system”. Hours of Service needs to be changed and the ELD mandate will only make the faulty HOS that much worse.

The biggest flaw in this  system is drivers and carriers are compensated based on miles traveled, as almost every load booked has the revenue broken down into what the load pays per mile, but the compliance mechanism is based on HOURS in service. This will lead to drivers pushing harder to cover more miles in the allotted hours. This could lead to roads being less safe as drivers will be pushed to their limits.

But the regulators know better right? It turns out they do not. The FMCSA has been a terrible failure. The unintended consequences of their regulations have made the highways less safe. Just this past year highway deaths in crashes involving trucks have gone up 5.4%. This is a huge jump. After the FMCSA enacted their CSA safety program intended to make the highways safer, the steady decline of deaths on the highway per miles driven has reversed and we see a continual increase. CSA made a driver with 5 million miles in the driver seat but with some tickets or log book violations less valuable to a trucking company than a new driver with no violations. No consideration was made for the driver that had 5 million miles without an accident. The regulations made the driver with 5 million safe miles the enemy along with many of our best drivers in the industry.

Now the same situation is happening with ELDs. Experienced and safer drivers will leave the industry as they are displeased with the government regulators trying to control every little thing they do on the road. Less experienced drivers will push harder to “make their miles” based on the hours left on their ELDs. At a minimum, the ELD mandate should be delayed until HOS regulations are improved and more discretion is given to the professionals driving the trucks.

Ken Lund

VP, Support Operations

Allen Lund Company

 ken.lund.@allenlund.com

Kenny Lund  graduated from Loyola Marymount University with a degree in Business Administration and managed the refrigerated transportation division in Los Angeles for eight years, before shifting full time into managing the Information and Technology Department in 1997; becoming the Vice President of the department in 2002. In 2014 Kenny started working with the ALC Logistics division to sell the ALC Transportation Management System (TMS) to companies that manage refrigerated and dry transportation.

Reprinted from ALC’s Carrier Connection, October 19, 2007, Issue #164.

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Allen Lund Company’s Bob Rose: Stronger Rates, Truck Shortages and ELDs

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DSCN0280“Name me a city or a state and I will tell you trucks have been tight,” states Bob Rose of the Allen Lund Company LLC.

Rose should know.  He is the manager of the firm’s San Francisco office and has been with the transportation and logistics company 31 years.  Based in LaCanada, CA, Allen Lund Company has 34 offices nationwide, working with 21,000 trucking companies, providing it with a keen pulse of truck availability.

The last three quarters of 2017 rates have been stronger, reflecting increased demand for equipment.

Allen Lund Company moves about 90,000 loads a year with a significant portion of this being perishables.

Rose doesn’t expect truck availability to improve any the rest of the year, and points out holidays such as Thanksgiving (November 23rd) always means increased demand for fresh fruits and vegetables and refrigerated trucks.

The ethnic population in the U.S. also is a factor with higher volume and demand for equipment to deliver product for their holiday observances.

“Not everyone can haul produce,” says Rose, in reference to the extra demands and knowledge required of drivers hauling perishables.

He also expresses concerns over the looming electronic logging device (ELD) requirement mandate, which the Commercial Vehicle Safety Alliance will begin phasing in December 18th unless it is delayed, as many hope.  Plans to start using out-of-service criteria connected with the ELD mandate begins April 1st.

While the large carriers and their trucking associations tend to support ELDs, owner operators and small fleets often view it as limiting their ability to provide superior service, increases their costs of operation, and being another rule limiting their freedom of choice as professional drivers.

“Not a lot of the large carriers are hauling produce,” observes Rose.  “Most of it is transported by owner operators and small trucking companies.”

He believes the tight truck supplies are resulting primarily due to the industry being at or near full capacity.

“We talk a lot about truck shortages, but with ELDs, we will feel it.  But no one yet knows how ELDs will be enforced,” Rose says.

As a result, he notes Allen Lund Company is looking for ways to reduce the costly delays too often found at loading and unloading docks.  They also are seeking improved routes for trucking since customers are maintaining lower inventories and want faster deliveries.

“I want to figure out how to pay drivers more so they can truck less and still support their families,” Rose concludes.

 

 

 

 

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