How Electronic Logging Equipment Affects Freight Rates

How Electronic Logging Equipment Affects Freight Rates
How Electronic Logging Equipment Affects Freight Rates

Technology is dramatically changing the way the trucking industry works. From tracking shipments to managing service hours, technology plays a part in every shipment today. As a freight shipper, freight technology directly impacts how you manage your freight needs. A good example of industry-changing trucking technology is the use of electronic logging equipment.

Manage service hours

The biggest change that will happen with electronic recording devices is the time it takes to deliver goods. The new recording device uses wireless connectivity and electronic tracking equipment to record service hours for all commercial truck drivers. These logs record when truck drivers start and leave work as part of their service hours. According to service time rules, drivers can only drive for a certain amount of time before they need to stop and rest. One of the main reasons for the authorization of electronic recording devices is to reduce the number of fake logs recorded. Previously using paper logs, drivers could change their paper logs to change their HOS hours. Reasons Drivers do it, from driving over time to making up for lost driving time due to bad weather. Now, ELD has changed that.

Rate change

The longer it takes for your shipment to reach its destination, the more money you will spend. It depends on how long it takes the driver to manage your shipment. Loss of productivity coupled with ELD-related technology costs is expected to drive up freight rates. While the jury is still out on this, analysts predict a 3% to 5% increase in shipping. As a shipper, you need to be prepared for potential shipping costs as these affect your business.

In this situation, you can take some proactive steps:

  • Increase delivery times and schedule shipments more flexibly.
  • If desired, allow drivers to park during off-hours at your facility rather than having them leave the area to find truck parking.
  • Analyze your routes between 400 and 800 miles to determine how ELD directives will affect deliveries.
  • Visit the FMCSA website regularly to stay up to date with the latest ELD regulatory news.
  • Choose an ELD Compliant Carrier