Economic Impact of Electronic Logging Devices

Economic Impact of ELDs

ELDs: Its Economic Impact and Their Purpose

The economic impact of Electronic Logging Devices (ELDs) is felt by shippers nationwide. The performance of ELDs has led to an increase in freight shipping costs. ELDs log how long a truck has been driving on its route. These devices have led from manual to automatic log entry, increasing the overall accuracy of driving time and miles driven per truck. Accordingly, the miles driven and hours worked have reduced since ELDs came into the trucking game. The complications of adding ELDs to the trucking process have ELDs for hauls in the mid-hundreds of miles receiving an additional day to their in-transit time.

Every logistics trade publication expected trouble in the industry when they were first introduced. They predicted a loss in productivity and an increase in freight shipping costs. The phased-in use of ELDs proved that they were correct.

While the purpose of the ELDs is to improve highway safety. The Large Truck Crash Causation Study, a national sample of large-truck fatal and injury crashes from 2001 to 2003 at 24 sites in 17 states, inspired it all. Data was collected on up to 1,000 elements in each collision. The total sample involved 967 crashes, which included 1,127 large trucks, 959 non-truck motor vehicles, 251 deaths, and 1,408 injuries. Each crash had at least one large truck and resulted in one fatality or injury.

The top two causes of accidents involving large trucks were:

  • Fatigued drivers

  • Excessive rates of speed


The Economic Impact of ELDs


In theory, there should be long-term savings benefits from ELDs, due to fewer accidents. For now, however, there is a very real impact on freight shipping costs. The use of ELDs has caused a drop in freight capacity, due to hauls taking longer to complete. If ELDs cause your shipment to require an extra day, then that reduces the chance of the truck making that delivery. As a result, there are now quite fewer trucks available, creating a backup of available loads. While less freight means more of a challenge for shippers. In the event of more competition means higher freight shipping costs.

3PLS Are Not All Alike


Enterprise-level 3PLs target major shippers by offering services and technology that companies might need or be able to afford. This can include storage managing and total shipping management. The enterprise-level existed both before and after the economic impact.

While it probably never occurred to most of our customers that FreightCenter is a totally independent 3PL. We benefit from that independence every time companies ship with FreightCenter. No, we don’t own any carriers or trucks or warehouses or freight terminals. We just give our customers the best prices and service available.

Small and new 3PLs look for whatever business they can get. They frequently target residential and regional shippers. It’s not unusual for a small and/or new 3PL to struggle with technology in addition to customer service issues. Off-the-shelf technology that will do everything a 3PL needs it to do is not readily available. And keeping a customer service team happy while they are learning in a new industry is not easy for any business.

With over 20 years of award-winning experience, FreightCenter sits between the small and enterprise-level of 3PLs. We develop long-lasting relationships with hundreds of carriers nationwide and thousands of customers. Above all, SMBs ship 1-40 times per month. Our in-house team of LTL, FTL, and Parcel shipping experts puts us way ahead of the pack. This is in terms of customer service. In addition, our technology gives SMB shippers access to free instant quotes from multiple shippers.

At FreightCenter we find the best freight carriers for your shipping needs, for small-to-medium businesses that ship 1-40 times per month.

More Changes Ahead


Freight industry changes happen all the time. The economic impact of ELDs is just the beginning. There are currently talks of more tariffs and fuel tax growth as well, which will again pass to shippers and consumers. However, what never changes is FreightCenter’s promise to find the best shipping rates for your freight.

Need to ship something? Compare freight shipping quotes from multiple carriers instantly or call FreightCenter at 800.716.7608.

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