In case you missed it, Joe Santone, senior vice president for Logistics Plus, was featured on today’s airing of Business Spotlight on WPSE AM 1450/FM 107.1 Radio. Business Spotlight is a 30-minute program airing Fridays at noon. Each segment focuses on a business or organization that is making an impact across the region.
In this month’s segment, Joe discusses Logistics Plus and its relationship with sister company NTL, domestic transportation, warehousing, freight agents, and more. You can listen to a replay of the interview on the Logistics Plus YouTube Channel below.
What are ELD’s? For anyone not familiar with the term, ELD is short for electronic logging device. This tool is used to document a driver’s Record of Duty Status (RODS). Before ELD’s came about, drivers had to manually enter their hours of service into a paper logbook. Although some individuals still utilize this method, ELD’s were created with the intent to be easily accessible, organized and a fast way to track, manage, and share RODS information. The device is able to connect with a truck’s engine, which transfers driving time directly to the ELD, making it easier and accurate for drivers when having to log their hours of service requirements.
The ELD Mandate About six years ago, in 2012, the U.S. Congress passed the MAP-21 bill, otherwise known as “Moving Ahead for Progress in the 21st Century.” This law requires drivers to have an ELD installed in their vehicle, replacing the previous manual logging method. The mandate was put into action in December of 2017, but drivers have until April of 2018 before the FMCSA (Federal Motor Carrier Safety Administration) requires them (inspectors will issue citations before April 1; after that date, out-of-service orders will be given to truckers that are non-compliant).
Impact on Truck Capacity The new ELD Mandate has raised issues concerning trucking capacity and much more. Although truck operators have known about this for a while, many have yet to install the electronic tracking device or find an authorized vendor, not to mention it is a lengthy process.
Based on FMCSA guidelines, the HOS rules are as follows:
Truckers have an 11-hour driving limit (only holds true if the driver has 10 consecutive hours off duty)
Drivers have a 14-hour absolute driving limit for driving after coming on duty (following 10 consecutive hours of off-duty)
Drivers must take breaks (may only drive if 8 hours or less have passed since the end of the drivers last off-duty)
Specification of how many hours a driver may work within an 8-day period
No more than 60 hours when driving 7 consecutive days in the same period
No more than 70 hours when driving 8 consecutive days in the same period
Restarts when the driver takes 34 + hours off duty
These new regulations hold strict limitations on the number of trips and hours drivers can complete in a given time frame. They also have drivers questioning what this means in terms of trucking capacity. Will truck drivers be able to fulfill their daily driving schedule? Will this decrease a carrier’s or operator’s profitability? As truckers are faced with increased costs and limited driving time, how much of these increased costs will be passed on to shippers?
Many media outlets are already reporting significant capacity constraints and rate increases across both the truckload and LTL segments. In fact, some truckload freight may be shifting to LTL in certain lanes as capacity has tightened and as truckload spot-market rates have increased. The TIA’s (Transportation Intermediary Association) data is also showing the impact of rising spot market truckload rates, which grew by double-digits year over year in the fourth quarter of 2017.
Although 3PLs are not immune to rate increases and capacity crunches, they are often in a better position to help customers find affordable solutions through their effective use of technology and their expansive carrier relationships.
There is no doubt that the ELD mandate will cause less trucking capacity, but in the long term, it will increase efficiency and productivity for users who implement it. Since the large fleet operators have implemented ELD’s years ago, they have an advantage over the smaller fleet and independent operators who have delayed ELD implementation. However, Logistics Plus is accomplished in finding the best logistic solutions to a shipper’s needs.
ELDs, new visibility tools, and automated enhancements will continue to change the transportation and logistics industry on every front. As costs are permanently reduced and efficiencies realized, the trucking industry may eventually see a prolonged period of price declines. However, that time horizon is at least a few years away. In the meantime, if you need a trusted logistics partner to help you find affordable truck capacity, Logistics Plus is ready to help.
U.S. Holiday schedules for Logistics Plus and ground carriers
As the holidays approach, we want to help you avoid any unnecessary shipping delays over the next few weeks. Shown below is the holiday schedule for U.S.-based Logistics Plus offices and warehouse locations, as well as the top U.S. ground (parcel and LTL) carriers. If you have any special transportation needs, or expedited shipping requests, please contact Logistics Plus in advance of the office closings noted below. You can use the Logistics Plus online global directory to find any of our people or our locations. You can also reach our North American freight division by calling 1.866.335.7623 or emailing us at nadops@logisticsplus.com.
Need help with any last-minute expedited shipping needs? Let us know!
Over the past few years, it has become increasingly difficult to secure truckload capacity. Currently, the overall trend in the logistics industry is that freight volume continues to increase, while truckload capacity cannot keep pace. In order to secure truckload capacity, you must understand the challenges associated with it which include truck driver shortages, increased regulations, and various economic factors.
Truck Driver Shortages
For several years running, driver shortages have been a consistent issue in the trucking industry. The two main factors that have led to a shortage in drivers include the number of drivers retiring and the amount of growth within the trucking industry. With the increasing number of drivers retiring, there is just not enough qualified applicants that can replace these jobs. The American Trucking Associations (ATA) estimates that by 2024, there will be a shortage of nearly 175,000 drivers. As the trend line for freight volume continues to increase, the number of drivers required simply can’t keep up.
Increased Government Regulation
As government regulations continue to increase, every business is affected in a unique way. Currently, CSA compliance, E-Logs, and Hours of Service regulations are affecting drivers and their availability. These regulations can be a burden to shippers because of the possibility of penalties, fees, and infractions if they are violated. Some infractions from government regulation can even revoke operating authority for freight carriers leading to an even larger shortage of drivers. Currently, the Electronic Logging Device (ELD) mandate is set to take effect this December. This regulation is causing major concern in the trucking industry and some carriers are even worried they may have to leave the industry or at the very least remove trucks from circulation.
Economic Factors
Not only is government regulation and driver shortages making it difficult to secure truckload capacity, but economic factors are also having an impact. A main concern in the industry right now is trucking equipment shortages. These shortages are due to the fact that economic pressure forced carriers into holding onto tractors and trailers longer than normal because these companies could not afford to replace them right away. Now that many carriers are in a position to replace old equipment, the demand for tractors and trailers has spiked while production has not. As a whole, truckload capacity is becoming harder and harder to secure because of factors such as this.
Securing truckload capacity can be very difficult and time-consuming due to the shortages, regulations, and economic factors affecting the trucking industry. Logistics Plus can help ensure you secure valuable truckload space. Contact us today!
Shipping freight may seem like a very complex process due to the number of options available. It’s important to understand the differences between Full Truckload (FTL) shipping and Less Than Truckload (LTL) shipping because they are two of the most commonly used transportation options within North America. Shippers must consider size, speed, and price when deciding between a FTL versus LTL. Here are the main differences between FTL and LTL shipments to help you decide which shipping method works best for you.
The main differences between FTL and LTL shipments can be broken down into four categories:
Size The first thing you must take into consideration when shipping freight is the size. The names Full Truckload and Less Than Truckload are self-explanatory and mean exactly what they say. LTL shipments are smaller shipments typically ranging from 100 to 5,000 pounds. These smaller shipments will not fill an entire truck, leaving space for other small shipments. On the other hand, FTL shipments fill most to all of an entire truck and tend to be much larger, often weighing 20,000 pounds or more. Shipments that weigh between approximately 5,000 and 10,000 pounds can sometimes move either LTL or FTL. When such shipments move LTL, they are often referred to as “volume LTL” shipments; and when they move FTL, they are often referred as “partial TL” shipments (read more about Volume LTL and Partial TL here).
Price Since LTL shipments are smaller and leave room for other shipments, they are cheaper because you will only pay for the space that you use. FTL shipments use most of the entire truck and cost more because you are paying for more space in the truck. The decision between choosing a FTL or LTL is crucial because if you choose the wrong option, you may end up paying for space that you aren’t even using.
Time If you are pressed on time and need to have something shipped quickly, FTL may be the way to go. Since LTL shipments involve more than just your shipment, they often require multiple stops and transfers before they reach the final destination. Typically, FTL shipments pick up and deliver on the same truck leading to a quicker delivery time.
Handling Along with how quickly you need a shipment to go out, you must also consider how delicate or high-risk the shipment is. With FTL shipping, your shipment will stay on the same truck and will not be transferred anywhere else. This creates less risk of damaged or missing items when shipping FTL. On the other hand, LTL shipments may switch trucks or be transferred multiple times before delivery, increasing the risk of damaged or missing items.
Choosing the correct shipping method is crucial for saving time and money for your company. If you have LTL or FTL shipping needs, then look no further than Logistics Plus! Contact us today.
In case you missed it, Joe Santone, senior vice president for Logistics Plus, was featured on today’s airing of Business Spotlight on WPSE AM 1450/FM 107.1 Radio. Business Spotlight is a 30-minute program airing Fridays at noon. Each segment focuses on a business or organization that is making an impact across the region.
Over the past few years, it has become increasingly difficult to secure truckload capacity. Currently, the overall trend in the logistics industry is that freight volume continues to increase, while 
Shipping freight may seem like a very complex process due to the number of options available. It’s important to understand the differences between Full Truckload (FTL) shipping and Less Than Truckload (LTL) shipping because they are two of the most commonly used transportation options within North America. Shippers must consider size, speed, and price when deciding between a FTL versus LTL. Here are the main differences between FTL and LTL shipments to help you decide which shipping method works best for you.