Electronic notebooks mandatory as of 2021: what this means for logistics – Part 3
- 20 November 2019
- Martin Tremblay
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Last June, Transport Canada announced that electronic logging devices (ELDs) are soon to become mandatory for Canadian carriers operating beyond a 160-kilometre range. Although this regulation has been in effect in the U.S. since December 2017, roughly 53% of pan-Canadian transportation companies will nevertheless have to switch to electronic logging, thereby transforming the transportation ecosystem in Quebec and the rest of Canada.
To assess how such a measure would impact its vast network of carriers and its numerous clients, G.M.R Freight Brokers met with several of them. This three-part series of articles highlights the perspectives of the various players in the transportation sector and their response to the mandatory ELD implementation scheduled for 2021.
Part 3 – The Broker’s Advice: In a Market Filled with Uncertainties, the Expertise of a Logistics Expert is Key!
After almost 10 years as a logistics consultant, Catherine Dubé has seen her fair share of upheavals in the transportation market. As an experienced logistician, she rationally assesses the situation: “Under this new ELD regulation, truckers will have less control over their work schedule, making it impossible for them to carry out as much work in the same amount of time. As a result, the availability of carriers and their interest towards less popular loads may decrease considerably.”
More specifically, Ms. Dubé raises the impact that mandatory electronic logging devices (ELDs) had on the US market in 2007, increasing freight rates by about 30%: “In a situation like this, carriers end up having less leeway and becoming less available. Operating costs also remain relatively unchanged. To cope with these problems, carriers have no choice but to increase their rates to cover the additional costs brought on by ELDs.”
Beyond the financial repercussions of ELDs, Ms. Dubé also worries about the impact that this additional regulation will have on recruitment, at a time when the transportation industry is struggling with a serious labour shortage. “Given that one of the big advantages of the trade is the latitude truckers have when carrying out their duties, the introduction of mandatory ELDs is likely to exacerbate the recruiting problems currently faced by Canadian trucking companies,” Ms. Dubé explained.
Networks and Organization: The Best Ways to Manage This New Regulation
Catherine Dubé remains categorical: there are several solutions to offset the impact of mandatory ELDs in Canada. “Obviously for the client, the best way to tackle the decline in transportation offers is by taking advantage of your broker’s vast network. For example, G.M.R. counts on a network of over 1,000 carriers available to meet the needs of our clients, making it easier for them to find transportation solutions,” she stated. Ms. Dubé also adds that this network is not the only solution to the problem: “G.M.R. is preparing for the implementation of this new 2021 regulation by working regularly with its clients to optimize their shipping operations. After all, carriers are much more likely to take on a shipping operation if the cargo is easy to load.”
Are you concerned about the impact of Canada’s ELD mandate on your transportation operations? Talk to a G.M.R. logistics expert and work together to find the best options available on the market!