What is an Electronic Logging Device (ELD), and why is it important?

An Electronic Logging Device (ELD) is used to automatically record driving hours, rest periods, and other duty statuses. It's important for ensuring compliance with Hours of Service (HOS) regulations.

Are ELDs mandatory for all commercial vehicles?

Yes, the FMCSA requires most commercial motor vehicles (CMVs) involved in interstate commerce to use ELDs to record HOS. However, some exemptions apply, such as short-haul drivers and certain pre-2000 model vehicles.

How does an ELD work to track Hours of Service (HOS)?

An ELD connects to the vehicle's engine to record driving time, rest periods, and other duty statuses. It automatically switches statuses based on vehicle movement and provides real-time updates to ensure compliance with HOS regulations.

Can an ELD track other important vehicle data besides HOS?

Yes, many ELDs also track vehicle diagnostics, fuel efficiency, idle time, and driver behavior. This data can be used to optimize fleet operations, reduce maintenance costs, and improve overall safety.

How does the ELD data get transferred during a DOT inspection?

During a DOT inspection, ELD data can be transferred electronically through methods such as email, USB, or Bluetooth. Some ELDs also offer a print option or on-screen display to show logs directly to the inspector.

How do I install and set up an ELD in my truck?

Installation is typically straightforward. The ELD plugs into the vehicle's diagnostic port and syncs with a mobile app or tablet. The setup involves connecting the device to your fleet management system and configuring it according to your business requirements.

How much does it cost to implement and maintain an ELD system?

The cost of implementing an ELD system varies depending on the provider and features. Typically, it includes a one-time purchase of the ELD hardware and a monthly or annual subscription fee for software and support services.

What are the benefits of using an ELD over traditional paper logs?

ELDs offer greater accuracy, reduce the risk of logbook violations, automate data recording, and improve fleet management efficiency. They also help in avoiding costly fines related to HOS non-compliance.

What privacy measures are in place to protect the data collected by an ELD?

ELDs must comply with strict data privacy standards, ensuring that only authorized personnel can access HOS and vehicle data. Data encryption and secure storage practices are commonly employed to protect sensitive information.

What should I do if my ELD malfunctions or loses connection?

If your ELD malfunctions, you must immediately note the failure and use paper logs to record your HOS until the issue is resolved. You are required to repair or replace the device within eight days, as per FMCSA regulations.

Chart of the Week: Reefer Outbound Tender Reject Index and Van Outbound Tender Reject Index – USA

Reefer Outbound Tender Reject Index

The national refrigerated (reefer) tender rejection rates (ROTRI) have been averaging above 14% since early October, compared to around 8% during the same period in 2023. This significant jump and sustained trend suggest the refrigerated truckload market is entering a more challenging transportation procurement environment as we approach the ironically named “protect-from-freeze” season.

Tender rejection rates measure the frequency with which carriers decline load coverage requests from contracted customers due to capacity constraints. Higher rejection rates reflect a favorable environment for truckload operators, indicating that demand exceeds available supply, increasing the value of their services.

While the reefer and dry van truckload markets are loosely connected, national dry van rejection rates (VOTRI) typically correlate with refrigerated rates but operate at a lower level.

In 2019, the ROTRI averaged above 15%, while the VOTRI averaged just over 5%. During the pandemic peak in 2021, the ROTRI surged to nearly 40%, with the VOTRI averaging 23%. Over the past two years, the gap between the two indices has been unusually narrow. In 2023, the ROTRI averaged a historic low of 5.3%, compared with 3.4% for the VOTRI, reflecting a loose truckload market.

Another head fake?

In 2023, the reefer market initially appeared to be tightening, driven by regional disruptions in the Northwest and Midwest.

Reefer Market Dynamics

Northwestern rejection rates neared 50% by late November, while Midwest reefer rejection rates, typically above 8% during the fall, spiked to 13% around Christmas and during January’s arctic cold snap.

The Northwest contributes only about 5% of refrigerated tenders, whereas the Midwest, representing about 35%, has a greater influence on the national average. Consequently, changes in larger-volume regions have a more significant impact.

Rejection rates fell back to near-record lows in the spring as the market recovered on the heels of warmer weather in February and March.

This year, Northwestern rejection rates (ROTRI.URNW) are less pronounced, but rejection rates across other U.S. regions are higher and increasingly volatile. This indicates reduced overall capacity and a more uniformly tightening market, less reliant on seasonal pressures.

On the Spot

Despite rising rejection rates, the spot market has yet to experience significant inflationary pressure. Although national rate-per-mile averages may be skewed by the inclusion of longer hauls, supply and demand imbalances usually become apparent over time.

Spot Market Dynamics

The Reefer Truckload Index (RTI), which tracks average spot rates for refrigerated loads exceeding 250 miles, has been more volatile but has not sustained higher levels than those seen during the summer. Notably, the RTI has not surpassed the weather-driven spike in January, even with two landfalling hurricanes this fall.

This lack of sustained upward pressure suggests that the spot market is not yet experiencing consistent demand growth for refrigerated shipments. Shippers are not resorting to spot market sourcing at levels comparable to last January, relying instead on their existing carrier networks.

However, securing refrigerated capacity in the contracted market is clearly more challenging than in previous years. Reefer contract rates are often below spot prices, reducing the incentive to drive spot rates higher. Instead, carriers are prioritizing seasonal spot freight without significant negotiation.

Winter Outlook

Weather conditions will likely determine how strong this market shift is during the winter months. Reefer trailers, which are not only used for cooling but also for maintaining stable temperatures to protect goods from freezing, play a crucial role in the “protect-from-freeze” season. If this winter is particularly cold, demand for reefer capacity is expected to remain strong.

The van market may not be tightening at the same clip as its refrigerated counterpart, but it will be a determining factor in how sustained this shift in capacity will be.

About the Chart of the Week

The FreightWaves Chart of the Week provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.

SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.

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