Opinion: One ELD Rule Doesn’t Fit All

President

D&G Transportation

There has been a lot of discussion lately about the proposed regulation that will mandate the use of electronic logging devices. Personally, I am in favor of using ELDs. The technology exists in a capacity that will allow for efficiencies and may even result in safety gains. Nevertheless, based on the current state of the regulatory environment and supply chain dynamics, I do not agree with the proposed timing for industrywide implementation.

I assume the idea behind the statement “level the playing field” relates to trucking companies throughout the industry being held accountable to the same set of rules so that no one can achieve a competitive advantage by operating outside the law.

The problem here is with the assumption that one set of hours-of-service regulations is adequate to address the needs of all aspects of the trucking industry. This seems to be a central theme behind the rhetoric and process the Federal Motor Carrier Safety Administration has used to regulate transportation. This one-size-fits-all approach has resulted in an inefficient and unbalanced operating environment.

Supply chain dynamics differ significantly, based on the nature and type of products that flow from supplier to consumer. Trucking companies exist to serve the needs of their customers and are specialized according to the characteristics of the freight they haul. Carriers pulling time- and temperature-sensitive loads generally operate under a different set of constraints than those hauling nonperishable items. Likewise, a different set of challenges exists when comparing truckload versus less-than-truckload operations.

In the same way carriers react to their environment, and to allow for maximum efficiency, the regulatory process must take these unique industry-specific characteristics into consideration. Following with the “playing field” metaphor, why not apply the same set of rules to football and baseball? It is readily apparent that different rules are necessary to address unique elements of each game even though both are sports. Likewise, it is unrealistic to expect one set of regulations to efficiently and effectively govern the entire trucking industry.

It’s worth pausing a moment here to consider the confusion that exists between electronic logging devices and electronic onboard recorders. According to American Trucking Associations spokesman Sean McNally: “ELD refers to a device that just logs and records driver hours. EOBRs do that, but can also do much more.”

There remains yet another important factor that must be considered regarding the proposed electronic onboard recorder-electronic logging device implementation timeline. While trucking companies are measured and held accountable for their HOS and safety by means of ever-increasing and restrictive government agency oversight, shippers and consignees are not. What must happen before the focus shifts and consideration is given to a regulatory framework that holds all supply chain partners accountable? It would be unfortunate for change to come from a situation where, for example, a driver leaves a facility after being detained for many hours. The stage is set: Feeling pressured to make up for lost time, the driver quickly pulls out into traffic, an accident ensues and litigation leads to a massive settlement against the shipper or consignee.

Continued focus on regulating transportation to the exclusion of all other supply chain players has contributed to an unbalanced environment that leaves trucking companies unfairly exposed to litigation and penalized — often without recourse — while shippers and consignees are not liable. Trucking companies bear the brunt of these costs, not only directly (e.g., when a carrier with a multidrop load is fined for arriving late for delivery due to being held up at a previous drop) but also in ways that are difficult to quantify (e.g., loss of productivity because the load will have to be rescheduled, the return load is lost and the driver is unavailable for another round). Inflated insurance coverage is another cost incurred by trucking companies — and caused in large part by a lopsided regulatory approach.

This has served to place a big red target on tractor-trailers and has contributed to a litigious environment that is both opportunistic and predatory.

Before we mandate across-the-board implementation of ELDs into the transportation world, let’s give due diligence by evaluating and proactively addressing issues that have led to unbalance and brokenness in our current supply chain. Rushing along an arbitrary agenda to implement EOBRs will only serve to exacerbate an already counterproductive and unbalanced situation and escalate the critical condition of our supply chain. The results of a forced and reckless approach to industrywide EOBR implementation will be described using adjectives such as catastrophic, devastating and disastrous. On the other hand, achieving balance within the system and mandating ELDs will greatly eliminate waste while adding a level of accountability and safety.

Based in Germantown, Wis., D&G Transportation Inc. is a family-owned truckload and less-than-truckload carrier that offers temperature-controlled services.