With the 2016 holiday season just around the bend, there’s no time to wait for fleet managers who want to create an effective plan for meeting peak demand and maximize their opportunity at this crucial time of the year. This year, a couple critical factors warrant careful consideration to make the coming holidays profitable and uncomplicated for trucking outfits:
1. The Driver and Technician Shortage
When the general interest press takes notice of a trucking trend, it’s often a big deal. Both Forbes and the New York Times recently ran articles about the national driver shortage. This issue isn’t breaking news—certainly not to the trucking industry itself—so why the media buzz?
In a guest column for Trucks.com right after he retired as head of the American Trucking Associations (ATA) this past summer, Bill Graves said, “While some may dispute this, every measure from ATA’s economics team, and nearly every conversation I have with those in the industry, highlight the fact that trucking companies have trouble attracting qualified drivers and technicians to keep America’s trucks moving.”
More fleets are moving to address the problem. Several top-rated North American trucking concerns offer some form of guaranteed pay to drivers. Some are also working harder on staggered schedules to afford their commercial truckers a better work-life balance—something highly prized in driver satisfaction surveys. Yet, if you find you need drivers in a pinch during peak season, keep in mind that well-respected firms like Ryder offers fully trained drivers.
2. ELD is Way Ahead of Schedule
Electronic Logging Devices (ELDs) are part of what some industry pundits have called “a regulatory wave” that’s been breaking across the commercial trucking industry. It includes everything from emissions standards to Hour of Service compliance. ELDs, while still being absorbed from a cost and operational perspective, have been vigorously implemented to beat the 2017 deadline.
In other words, ELD use is quickly becoming the rule, rather than the exception. That may end up hindering those that fail to embrace the technology now. Some fleets and owners are certainly delaying ELD until the 2017 deadline gets closer.
But speaking at the 2016 Truckload Carriers Association, John Larkin, managing director and head of transportation capital markets research at Stifel Financial Corp., said, “Most shippers have little interest in using non-compliant carriers. We mention this fairly widespread trend to suggest that the impact associated with ELD implementation may be felt a little earlier than some had projected.”
To those that rent all or part of their fleet to meet seasonal demand spikes, this has ramifications. Some commercial fleets have already installed telematics in rental trucks, mostly for long-haul customers. Renters who qualify for the 100 and 150-mile radius exemptions can still keep paper trip logs. It’s a lot to think about during the busiest time of the year for the majority of trucking firms. And think you should.
This article was originally featured on Ryder.com.