ELD Effects On Truck Driver Income
Truckers who get paid by the mile may see their incomes drop due to a more accurate accounting of the time it takes to make a delivery, amongst other transportation problems that are arising. As more and more truck drivers see their income drop, we may see an increased driver shortage in the transportation industry.
If you are a truck driver who is paid by the mile, then continue reading to stay informed about the latest trucking news and how your job may be impacted.
2017 Rates Climb
By the end of 2017, rates for vehicles per mile increased from $1.67 per mile to $2.11 per mile. That is the highest monthly average since 2010, as the direct result of increased fuel costs and high demand. The biggest influences behind this huge rate increase include:
1. Economic Growth
The economy is growing faster than it has in recent years, and there has also been an increase in activities by energy companies. Therefore, a truck urgency emerged towards the end of the year for higher freight volume.
E-commerce has continued to up the game for the trucking industry, which was especially noticeable around the holiday season.
3. Extreme Weather
The back-to-back hurricanes caused massive disruptions in freight transportation all over the country. Movements had to be canceled and re-routed over and over again to restock the storm-affected communities and surrounding regions. By the time the shipping patterns returned the normal, truckers were in the middle of the busy holiday season.
The ELD Impact
Now, combine the increased trucker rates with the impact from the ELD mandate. Although we are only a month into the new ELD regulations, many transportation experts predict a 3% to 5% impact on carrier productivity, especially on the drivers who get paid per mile.
As ELD technology have strict timing rules and can provide more accurate driving data, there will be more instances where these new requirements can extend a driving trip over an extended period of time.
For example, if the driver’s 14-hour-on-duty cycle limits a drive, then this can lead to a whole array of problems for the driver and the transportation company. The shipper will have to compensate the carrier for delays and pay more for rescheduled appointments.
Rates will also continue to increase, as the drivers will demand higher pay per mile as their weekly mileage decreases.
Who Will Be Hit the Hardest?
Owner-operators and small fleets will have to work hard this year to figure out what works and what doesn’t work for their business in regard to the ELD system.
If rates continue to increase this year and these smaller transportation businesses start seeing problems related to ELDs, then they may not make it. This will be further exacerbated by the current driver turnover rate of 85% among smaller fleets.
What it comes down to is this: ELDs are not going away, and smaller fleets will need to appropriately adjust their operations to fit these new transportation regulations.
Will You Be Impacted?
When it comes down to it, to negate many of the numerous problems that can occur, transportation businesses need to ensure that there is strong communication between drivers and the back office once the ELD mandate has gone into effect,
In respect to the impending ELD mandate, if you need additional help, UTECH is here for you. With our knowledge and expertise, we will ease your fears, so you can continue doing your job efficiently.
We are leading specialists in the trucking industry, to help ensure safety for everyone on the roads. GPSTab has gone through a rigorous certification process, and we guarantee that it will make a great choice as an ELD or AOBRD solution for your business. With the well-known and tested GPSTab platform, our edition will provide more functionality to fleets of all sizes, while keeping drivers happy.