Electronic Logging Device

Economic Impact of Electronic Logging Devices

by Nadia Brosious

ELDs: Their 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 accuracy of driving time and miles driven per truck. Accordingly, the miles driven and hours worked have reduced since ELDs entered 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, resulting 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 genuine impact on freight shipping costs. ELDs have caused a drop in freight capacity due to hauls taking longer to complete. If ELDs cause your shipment to require an extra day, that reduces the chance of the truck making that delivery. As a result, fewer trucks are now available, creating a backup of available loads. At the same time, 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

The enterprise level existed both before and after the economic impact. 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.

While it probably never occurred to most of our customers that FreightCenter is an independent 3PL. We benefit from that independence every time companies ship with FreightCenter. No, we don’t own any carriers, trucks, 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 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 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 LTLFTL, 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 talks of more tariffs and fuel tax growth, 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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