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Keys To Compliance Part 1
TransReport Services 2017 Outlook: Keys To Compliance
At the start of each New Year our company sits down as a team and discusses our goals. We also discuss the types of changes we can expect to see in carrier regulatory compliance as well as look at new business opportunities such as providing a new service or offering an additional fleet management product to our customers.
If one thing was clear from this years meeting it is that 2017 is sure to be a year full of change and we have compiled a list of the top 2 keys to compliance for trucking fleets. This 2-part series will examine each key to compliance for the trucking industry and the changes that are associated for this upcoming year.
Key 1: Omnitracs XRS For Hours Of Service
Listed as the number one issue on the top ten list of trucking industry issues by the American Transportation Research Institute (ATRI) in a recent Fleetowner.com article, the ELD Mandate is going to create drastic changes for carriers in 2017. Evaluating the type of electronic logging device (ELD) that best fits your company’s needs, allocatinga minimum of 6-8 weeks to have both your drivers and back end staff become proficient with the new technology and determining its impact on your operations is no small task.
The vast majority of carriers we’ve spoken with about ELD adoption say they will be adopting “sometime in the summer” of 2017. Let’s explore 3 reasons why prolonging adoption can be detrimental to your fleets continued success:
- According to a recent Ontario Trucking Association article, many customers are urging that trucking companies make plans to adopt ELDs as soon as possible for both keeping current freight business as well as earning more in the near future. Outside of ELDs providing a competitive advantage, shippers will not be comforted by a carrier’s laissez faire attitude to adoption when the risks are so high. In fact, numerous reports have shown that shippers are requiring a detailed adoption plan before renewing contracts for 2017.
- Your capacity and utilization can be drastically affected. A recent study done by TransPlace of over 500 carriers showed that 56% of large fleets expect their utilization to decrease while over 64% of smaller fleet’s also predicted utilization decreases. If you haven’t done so already, it is time to consider the impact of ELDs on your operation.
- ELD providers can INCREASE their rates as we near the compliance date. It is clear that ELDs will have a significant financial impact on your company with the TransPlans survey showing the majority of carriers indicating this number to be around $700 USD per unit.Though there are a large number of ELD providers in the market, adopting a solution from a recently formed company with minimal resources promoting “cheap” solutions may not be a wise decision. You should do your due diligence when analyzing which platform to adopt and be sure that your provider guarantees their products are compliant with the specifications of the ELD Mandate. For better or for worse, ELD providers will be making substantial profits off of the passing of the ELD mandate and as such can increase the upfront and monthly subscription prices of their ELDs as the deadline approaches. While the wait until the last minute approach may work for this years Christmas presents, it is wise to consider that ELD pricing will likely increase as December 17, 2017 approaches.
All in all, we feel that the ELD Mandate is going to be good for the trucking industry and improving the safety on highways throughout Canada and the United States should be reason enough to pass this rule. Pre-ELD Mandate times have tended to focus more on the negatives and fears of ELDs however there are numerous benefits to consider including a reduction in HOS and log violations as well as fleet optimization potential. Depending on the resources in your company you can approach the ELD Mandate with a goal of achieving the bare minimum of HOS compliance or as an opportunity to benefit from numerous add on features such as GPS tracking, driver performance monitoring and route management. TransReport Services has partnered with Omnitracs because they have been the major player in vehicle telematics for years and can provide platforms that suit the budgets and needs of fleets of all sizes.
If your new years goal is to adopt an ELD solution, contact our team today to learn more about our Omnitracs products! Stay tuned for TransReport Services 2nd Key to Compliance for 2017.