Insights - September/October 2017 - 33

As ELD Compliance Date
Approaches, EXPO Panelists Stress
Driver, Technology Implications
The impact of the Dec. 18 electronic logging device compliance
deadline is an ever-hotter topic of conversation in the intermodal
sector, given the expected impacts on freight volume and driver
supply in the months and years ahead.
EXPO panelists offered a range of implementation experience
and post-compliance expectations to illustrate how complex the
process can be. The issue of device implementation surfaced
during the opening Intermodal FreightCast, a specific ELD
education session and other sessions relating to technology as
well as legislative and regulatory issues. The speakers' views
about drivers, productivity and technological factors were shaped
in part by the Commercial Vehicle Safety Alliance's September
announcement of a "soft launch" that won't put trucks out of
service for violations until April 1 of next year.
During the opening general session, Lee Clair, managing
partner of Transportation & Logistics Advisors, envisioned multiple
outcomes, with a focus on the driver. "It's a cultural change that the
owner-operator isn't going to like," he said. "Having someone watch
over them doesn't fit their model."
Some drivers could be lost as construction jobs will increase
following multiple natural disasters, he believes, though many truck
runs won't be affected at all.
At the ELD education session, three fleet executives shared
driver-related implementation experiences.

'Little Bit More Tricky'
Robert Loya, director of operations at CMI, acknowledged that
the company's ongoing ELD rollout process "was a little bit more
tricky in the independent contractor model." The issue wasn't the
ELD installation, he said, but rather the addition of GPS that made
some drivers feel like they were being watched.
When drivers were told GPS was there to help manage their day
more efficiently and will result in higher pay, their views changed.
"It's all about education," according to Loya. "The more you
teach the drivers the more accepting they are."
Schneider Senior Vice President Jim Filter said the company,
where he is general manager of intermodal, fully implemented
ELDs in 2010. Productivity slipped slightly after ELD installation,
and drivers pressed for more compensation at the same time
that ELDs helped to better manage a driver's day. To minimize
productivity loss, Schneider worked with customers to adjust
their expectations and made sure that all accessorial fees were
collected to help with driver pay.
Rail Delivery Services Co-Founder Greg Stefflre said the
company keeps working with its contractors to help them
understand the value of the truck performance data they are
gaining from telematics capabilities that were installed along with
the ELDs, such as tax apportionment and engine performance.
ELD-related operational changes are also a question mark, in

part because of the 100-mile radius exemption that might affect
intermodal truckers. Loya said the larger question is how much
truckers will continue to be affected by port delays that restrict their
hours. Faster turn times are imperative there, he said.
Filter, Stefflre and Loya agreed that the largest ELD impact will
be felt by smaller truckers, who are likely to lose drivers as their
miles drop, particularly when the April 1 enforcement begins.
"We are going to see a flushing of a lot of small truckers that
do not manage their duty hours," Stefflre said, exacerbated by
expected tougher enforcement in 100-mile exemption areas. Loya
expects still more Southern California drivers to leave in 2019 as
ports tighten clean air rules.
Asked about advice to late adopters, both Filter and Loya said it
was to manage expectations with drivers and customers and take
advantage of early adopters. Stefflre stressed the relatively low
cost to add the devices.

'Almost Like Plug and Play'
"We wanted a quick and easy install," Loya said. "Owneroperators don't want their dashboard touched. It's almost like plug
and play."
There is still a lingering question about what could happen
between now and Dec. 18. At another session, the possibility was
raised of a rule delay in spite of several recent events. Federal
Motor Carrier Safety Administration Associate Administrator
for Field Operations Annie Collins told IANA committee meeting
attendees that training and technological efforts are moving
forward as planned. Prior to last month, the Supreme Court
rejected the Owner-Operator Independent Drivers Association bid
to halt the rule, and the House of Representatives quashed a lastditch legislative push for a delay.
Jason Craig, director of government affairs at C.H. Robinson,
believes there still could be delays in the compliance date due to IT
issues among government agencies and law enforcement.
Stefflre said ELD technology has helped to manage drivers and
enhance service, while at the same time insulating the company
from a legal standpoint against misclassification concerns.
"GPS and telematics help you a lot," he said. "We can't provide
the data the customers want and grow our business if we can't
provide that technology."
"Ports have always been considered the black [information]
hole," Loya said. "[Technology] has really helped from a transparency perspective. BCOs are now looking for that information too,
and that's great."
Jon Gold, a vice president at the National Retail Federation,
said, "Our members large and small are requiring that their carriers
be compliant. They don't want to have problems in the supply chain
with trucks being stopped. Carriers should still look at Dec. 18."

September/October 2017 | Intermodal Insights

Table of Contents for the Digital Edition of Insights - September/October 2017