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.<\/p>\n
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.<\/p>\n
After almost 10 years as a logistics consultant, Catherine Dub\u00e9 has seen her fair share of upheavals in the transportation market. As an experienced logistician, she rationally assesses the situation: \u201cUnder 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.\u201d<\/p>\n
More specifically, Ms. Dub\u00e9 raises the impact that mandatory electronic logging devices (ELDs) had on the US market in 2007, increasing freight rates by about 30%: \u201cIn 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.\u201d<\/p>\n
Beyond the financial repercussions of ELDs, Ms. Dub\u00e9 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. \u201cGiven 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,\u201d Ms. Dub\u00e9 explained.<\/p>\n
Catherine Dub\u00e9 remains categorical: there are several solutions to offset the impact of mandatory ELDs in Canada. \u201cObviously for the client, the best way to tackle the decline in transportation offers is by taking advantage of your broker\u2019s 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,\u201d she stated. Ms. Dub\u00e9 also adds that this network is not the only solution to the problem: \u201cG.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.\u201d<\/p>\n