Insights - May/June 2018 - 18

ELD

[Safety Measurement System]," the agency's posting said. "Motor carriers that have received ELD-related violations will start to
see them reflected in their HOS Compliance [Behavior Analysis &
Safety Improvement Categories] in early May 2018 when the next
monthly SMS results are released."
In addition, clarification was issued that drivers who could be
placed out of service after April 1 for violations would be allowed
to complete the run they were making, while being subject to
unspecified future enforcement action.
The agency does publish monthly statistics about violations,
including ELDs, at https://ai.fmcsa.dot.gov/SafetyProgram/
RoadsideInspections.aspx.

understanding how to send the information to inspectors," Clader
said. "Our inspectors are happy to walk the driver through the
process. This is a perfect example of why the CHP believes in an
educational approach to gain voluntary compliance."
Since Dec. 18, FMCSA has made few general comments and
public statements about the mandate. However, there have been a
few developments.
FMCSA noted on its Compliance, Safety, Accountability
website that severity weights have been assigned to ELD-related
violations that are being counted in a driver's or motor carrier's
safety profile. "These violations are not being applied retroactively;
violations recorded prior to April 1, 2018, will not be counted in

ELD Mandate Effect: Opportunity Beckons for Intermodal
Editor's note - this article represents the opinion and conclusions of the author, and is not a statement of IANA policy.
By Ted Prince, Chief Operating Officer, Tiger Cool Express
The opportunity for intermodal right now as a result of the
electronic logging device mandate is both significant and obvious.
Intermodal, no longer a "truck plus-one wannabe," is faster and
more capable of offering reliable capacity. The advantage is clear
on transcontinental lanes, but it exists in shorter corridors as well.
Since 1980, the U.S. economy has become based on justin-time trucking with an underlying reliable supply of trucking
capacity and generally "reasonable" rates, both of which were
expected to last forever. The recent implementation of ELDs
- which strictly enforce hours-of-service - is changing that
paradigm.
With fewer hours available to drive, either the rate-per-mile
paid, or the miles-per-hour driven, must increase by the reduced
driving time for the driver to remain economically indifferent.
(The latter is probably impractical.) As ELD enforcement reduces
the supply of truckload capacity, the price of both truckload and
intermodal increases.
Not only do drivers' driving time and mileage lessen, but
mandatory breaks and reset periods also increase. Because of
the length of haul, a 34-hour reset will be required after each
transcontinental run.
The adjacent graphic illustrates effectively how these
changes can benefit intermodal. Consider the cumulative time
ELD Makes Intermodal Transit Times More Competitive
Pre- and Post-ELD Comparisons of Trucking and Rail

Cumulative [One-way] Transit Hours

180

166

160

151

140
120
100

113

146

143
117
101

146
127

116

112

97

80
60
40
20
0

Bakersfield - Boston
Intermodal

Bakersfield - Bronx
Truck Post-ELD Realistic

18 Intermodal Insights | May/June 2018

Fresno - Boston
Truck Post-ELD Optimistic

and distance of intermodal and truckload shipments between
Bakersfield, California for the 3,002-mile transit to Boston,
Massachusetts.
Intermodal transit was - and remains - 113 hours. Prior
to ELD enforcement, a single operator could make the trip in
approximately 100 hours. In today's world with the ELD mandate,
that transit time has significantly increased to a range of 145 to
151 hours. Whereas the truck alternatives have rest periods of no
activity, the intermodal product is almost continuously moving.
The pre-ELD transit times were widely understood to be the
single-truck standard which intermodal needed to match - or
against which intermodal had to discount. It should be noted that
team operations also were an option for shippers.

Team-Like Service Disappears

Without actual teams performing this service, team-like
service provided by single drivers will disappear. Evidence
suggests that the one thing more difficult to recruit - and retain
- than a driver is two (team) drivers who will stay together.
When capacity requirements are examined beyond individual
one-way moves, and are viewed in terms of the cumulative
impact, the capacity crunch is shown to be even more severe.
Prior to ELD enforcement, a single driver might be able
to achieve 35 annual transcontinental roundtrips. However, post-ELD implementation,
the same driver is constrained to 21 because
of the cumulative effect of the longer transit
times for each and every run that is required
149
141
in order to comply with the ELD mandate. The
120
resulting 14 fewer round trips equates to a 40
99
percent reduction in both driver and equipment
productivity.
This draconian shrink is not yet obvious.
Rather, it is a "rolling" impact which will become
evident over the next several months. It will either
hasten the exit of truck drivers from the market or
accelerate rate increases that already are taking
Fresno - Bronx
place - or both.
Truck Prior to ELD


https://ai.fmcsa.dot.gov/SafetyProgram/roadsideinspections.aspx https://ai.fmcsa.dot.gov/SafetyProgram/roadsideinspections.aspx

Table of Contents for the Digital Edition of Insights - May/June 2018

IANA News
Operations & Maintenance Business Meeting 2018 Recap: Creating the Future of Intermodal
Intermodal Is on a Positive Path in 2018
Chassis Market’s Evolution Blends Promise, Challenges
Identifying the Missing Link in Chassis Maintenance
ELD Mandate Lessons: Opportunity, Compliance, Tech Issues
ELD Mandate Effect: Opportunity Beckons for Intermodal
Ocean Carrier Realignments Trigger Significant Change for Intermodal
Freight Report
Build Awareness of Intermodal to Attract Job Candidates
3PLs Adopt Technology to Enhance Customer Relationships
As Technology Changes Business Relationships, Personalization Still Matters
Voice of the Shipper
Government News
New Members
People News
Intermodal Calendar
Insights - May/June 2018 - Cover1
Insights - May/June 2018 - 2
Insights - May/June 2018 - 3
Insights - May/June 2018 - IANA News
Insights - May/June 2018 - Operations & Maintenance Business Meeting 2018 Recap: Creating the Future of Intermodal
Insights - May/June 2018 - 6
Insights - May/June 2018 - 7
Insights - May/June 2018 - 8
Insights - May/June 2018 - Intermodal Is on a Positive Path in 2018
Insights - May/June 2018 - 10
Insights - May/June 2018 - Chassis Market’s Evolution Blends Promise, Challenges
Insights - May/June 2018 - 12
Insights - May/June 2018 - 13
Insights - May/June 2018 - 14
Insights - May/June 2018 - Identifying the Missing Link in Chassis Maintenance
Insights - May/June 2018 - ELD Mandate Lessons: Opportunity, Compliance, Tech Issues
Insights - May/June 2018 - 17
Insights - May/June 2018 - ELD Mandate Effect: Opportunity Beckons for Intermodal
Insights - May/June 2018 - Ocean Carrier Realignments Trigger Significant Change for Intermodal
Insights - May/June 2018 - 20
Insights - May/June 2018 - 21
Insights - May/June 2018 - 22
Insights - May/June 2018 - Freight Report
Insights - May/June 2018 - Build Awareness of Intermodal to Attract Job Candidates
Insights - May/June 2018 - 25
Insights - May/June 2018 - 26
Insights - May/June 2018 - 27
Insights - May/June 2018 - 3PLs Adopt Technology to Enhance Customer Relationships
Insights - May/June 2018 - 29
Insights - May/June 2018 - 30
Insights - May/June 2018 - As Technology Changes Business Relationships, Personalization Still Matters
Insights - May/June 2018 - 32
Insights - May/June 2018 - 33
Insights - May/June 2018 - 34
Insights - May/June 2018 - Government News
Insights - May/June 2018 - 36
Insights - May/June 2018 - New Members
Insights - May/June 2018 - 38
Insights - May/June 2018 - 39
Insights - May/June 2018 - 40
Insights - May/June 2018 - 41
Insights - May/June 2018 - 42
Insights - May/June 2018 - Intermodal Calendar
Insights - May/June 2018 - Cover4
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