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US truck rates to rise as 'spy in the cab' rule increases costs

THIS is the first year of the mandatory "spy-the-cab", or the electronic logging device (ELD), long sought by US safety advocates and dreaded by truck drivers.

Shippers should expect the implementation of the ELD mandate to push up rates in 2018, said Satish Jindel, president of SJ Consulting Group in Pittsburgh.

Big trucking companies have ELDs installed, smaller trucking companies think this regulatory overreach and massive non-compliance is expected.

The rule doesn't change hours-of-service restrictions, according to the Federal Motor Carrier Safety Administration (FMCSA), but is simply a way to help create a safer work environment for drivers.

But truckers have reported delays in having devices delivered, difficulty in getting units installed, and trouble logging in to smartphone apps that sync up with the devices, according to the Wall Street Journal.

Other drivers reported waiting for hours on hold trying to reach customer-service representatives.Norita Taylor, spokeswoman for the Owner-Operator Independent Drivers Association (OOIDA), an industry group that has opposed the mandate, said her organisation has received a lot of negative feedback.

"In one day we had 50 calls complaining. We think the providers are not prepared to deal with owner-operators or small businesses. They are used to servicing large fleets," she said.

Although the rule was completed in 2015, some truckers held off on adding the devices in belief that there might be a delay in the rule or that exemptions to it might be given, reported American Shipper.

And although some temporary exemptions were granted to agricultural transports as well as the Truck Renting and Leasing Association in recent weeks, the mandate, which requires ELDs to be installed on all interstate commercial vehicles model year 2000 and newer, went into effect as planned for the vast majority of truckers and trucking companies.

Truck drivers stopped by police or stopping at weigh stations may receive citations for not having an ELD installed, reports IHS Media.

But the real impact of the mandate will be felt when state and federal officials begin putting non-compliant drivers out of business from April 1.

Shippers may see transit times increase by days as electronic logging ends wiggle room to fudge paper logs, which can amount many hours.

The ELD mandate represents means the loss of productivity in one link of the supply chain, the long haul, could increase inefficiencies in others.

That means missed deliveries, inaccurate demand forecasting after freight is delivered for final distribution at a time when e-commerce demands more precision.

Many truckers, shippers and their logistics partners are by no means well prepared for ELDs. For one, there's no one "fix". Nor are ramifications known, fines and out-of-service orders truck drivers may face.

Surveys indicate some shippers are slow to heed the warnings of double-digit transport rate hikes, or expect the overall price hikes will not be that dramatic.

They also show many shippers, one-fifth of those surveyed, have done nothing to prepare for the ELD mandate. "Shippers are in for a rude awakening," said one logistics provider.