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JOC Guide to Trucking, August 2018

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4 The Journal of Commerce | August 2018 www.joc.com Editorial August 2018 William B. Cassidy 2018 JOC Guide to Trucking Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, chris.brooks@ihsmarkit.com Executive Editor, The Journal of Commerce and JOC.com: Mark Szakonyi 202 872 1234, mark.szakonyi@ihsmarkit.com Managing Editor: Barbara Wyker 908 777 3217, barbara.wyker@ihsmarkit.com Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, bill.cassidy@ihsmarkit.com Bill Mongelluzzo West Coast 562 428 5999, bill.mongelluzzo@ihsmarkit.com Hugh Morley Northeast, Mexico 646 679 3475, hugh.morley@ihsmarkit.com Eric Johnson Technology 213 444 9326, eric.johnson@ihsmarkit.com Janet Nodar Breakbulk and Heavy Li 251 473 2742, janet.nodar@ihsmarkit.com Greg Knowler Europe Editor, Maritime & Trade, IHS Markit +44 7976798770, greg.knowler@ihsmarkit.com Turloch Mooney Global Ports, Maritime & Trade, IHS Markit +852 9011 9109, turloch.mooney@ihsmarkit.com Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, ari.ashe@ihsmarkit.com Web Editor: Joseph Lazzaro 917 309 0148, joseph.lazzaro@ihsmarkit.com Data Analyst: Dustin Braden 646 679 3450, dustin.braden@ihsmarkit.com Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 alessandra.barrett@ihsmarkit.com Senior Designer: Sue Abt, 862 371 3534, sue.abt@ihsmarkit.com Designer: Bryan Boyd, 908 910 7849, bryan.boyd@ihsmarkit.com Publisher: Tony Stein, 770 295 8809, tony.stein@ihsmarkit.com Sales: Cindy Cronin, Strategic Account Manager Southeast, Gulf, Canada sales, 954 551 8305 Zachary Gorman, Account Executive Northeast, Illinois sales 646 679 3466 Jean Gibbons, Senior Sales Executive West Coast, Midwest sales, 706 469 7160 Ria Van den Bogaert, Sales Representative Europe, Middle East sales, +32 2 569 8905 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 For Magazine Subscription Customer Service: www.joc.com/help 450 West 33rd St., 5th Floor, New York, N.Y. 10001 973 776 8660 • 800 952 3839 Executive Director, Editorial Content, Maritime & Trade, IHS Markit, Peter Tirschwell Executive Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Product Manager, JOC, Jesse Case ©2018 The Journal of Commerce — All Rights Reserved For more information, visit our website, www.joc.com. companies such as Zipline Logistics revealed just how endemic hours- of-service violations had been prior to the ELD mandate and created a situation in which capacity was displaced throughout the US. That led shippers to rethink everything from carrier selection to distribution center locations. That's a much broader impact on supply chains than foreseen by shippers surveyed by The Journal of Commerce a year ago, and not the impact they were expecting. And the changes shippers are making to rebalance supply chains and eliminate ine ciencies are likely to be lasting, even if e orts to exempt large numbers of truckers from the rule were to succeed. Currently, there's one such e ort before the Federal Motor Carrier Safety Administration, a petition from the Small Business in Transportation Coalition seeking an exemption for all truck operators with fewer than 50 employees. The Senate, in its transportation fund- ing bill, passed legislation that would e ectively extend an existing exemption for agricultural haulers. A few bills that would overturn or revise the mandate have been introduced in the US House of Rep- resentatives, where sponsors hope they will be added to larger legis- lation and become law. The Small Carrier Electronic Logging Device Exemption Act, for one, targets fl eets of up to 10 trucks. The odds, however, are against federal regulators or Congress approving a blanket exemption. They're more likely to revise the hours-of-service rules or tinker on the edges of the mandate, as the Senate bill would. The longer the ELD mandate is in e ect, the more pervasive its infl uence on supply chains. At this point, that infl uence increasingly looks irreversible. EIGHT MONTHS INTO the electronic logging era, the impact of the US electronic logging device (ELD) man- date is becoming clearer, and it's both greater and less than anticipated. A year ago, it was widely expected that tens of thousands of truck drivers would turn in their keys and quit trucking for good after the mandate fell into place on Dec. 18, leading to an immediate capacity crisis just weeks before Christmas. We got the capacity crisis, all right, but not because truckers quit. In fact, there now may be more truck drivers than ever. According to federal data ana- lyzed by Tucker Company World- wide, 542,000 drivers have entered the workforce since 2012, with the total reaching 2.5 million by May 2018, fi ve months after the ELD mandate took e ect and one month after its enforcement deadline. The second big expectation was a wave of out-of-service orders on truck drivers once full enforcement began on April 1. Again, that didn't happen. In May, fewer than 1 per- cent of all roadside truck inspections resulted in a driver being cited for operating without an ELD. The percentage of driver inspec- tions with at least one hours-of- service violation dropped from 1.19 to 0.64 percent from December through May, with the percentage sticking about 0.84 percent from January through March and falling again as ELD enforcement took e ect in April. What did happen is widespread compliance with the ELD mandate and, with hours being logged elec- tronically, hours-of-service rules. The biggest e ect of the mandate wasn't a loss of drivers, but of driving hours. That dramatically extended some shipment transit times. The widespread impact on truck- load transit times documented by The irreversible ELD era

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