The looming new ELD Mandate for the trucking industry is on the front of many carriers minds. From cost to implementation, to equipment concerns, many hope there is no end to the delays in the mandate taking effect. However, it looks like implementation day may be right around the corner, so we wanted to explore some financial considerations to help you be prepared when it does take effect.
With the ELD mandate, most feel trucking capacity will be tightened due to the increased regulation and fewer carriers having the ability to manipulate their manual logs. However, the upside to this is one can hope to assume that rates will increase because there will be fewer trucks available and the freight will still need to be moved.
For small carriers who have been manipulating their logs to run more freight and make more money, you have been putting a strain on your equipment due to the high usage. This has most likely translated into higher maintenance costs. Financially you need to be prepared with the ELD mandate that you might not be able to run as many miles; but, the hope is rates will increase to somewhat make up for the decreased miles. Additionally, over time you might see a savings on maintenance costs due to the decreased usage of your equipment.
With the new ELD mandate, it is going to be more important than ever to ensure you are planning your time wisely to make up for the reduced miles. This means ensuring less unloaded or deadhead miles and better planning.
Given the uncertainty of how and when the ELD mandate will unfold it could be beneficial for trucking companies to be prepared with a plan to maintain their working capital. This could include building up your savings, working with your bank on a line of credit or finding an alternative lender such as a freight bill factoring company so you can start the application process before you encounter a gap in your working capital.
Additionally, finding ways to save money could be beneficial during these uncertain times. Signing up for fuel cards or finding partners who offer them for free is an easy way to save money every time you need fuel. Fuel cards also offer a wide range of fuel management services and discounts on all your trucking needs.