The domestic and international drayage market will experience new levels of complexity in 2015.
The Federal Motor Carrier Safety Administration is expected to finalize the use of Electronic Logging Devices (ELDs) in 2015 for implementation in 2017. The use of ELDs will make the industry safer and is strongly supported by the American Trucking Associations. Opportunities remain though for the FMCSA to address data quality and methodology concerns of Compliance Safety Accountability scores.
Challenges retaining and recruiting drivers will reach new levels in 2015 as turnover is expected to remain over 100 percent. The professional driver pool continues to shrink as companies pursue the same drivers. Overall rate levels along with driver compensation need to increase further into 2015. Besides compensation, the aging population, increasing regulations, and the overall lifestyle of the drivers remain key challenges. The driver shortage will accelerate the modal conversion from truck to rail as the definition of “long haul” in the drayage business becomes shorter (less than 300 miles). Companies will continue to look for selective acquisitions as a way to expand their presence in both existing and new markets.
The chassis paradigm shift will further evolve in 2015 as most ocean shipping lines have exited the chassis business. More drayage providers will switch to the European model whereby the drayage company provides the chassis. The upside is trucker chassis are safer (outfitted with radial tires and LED lights), more reliable and provide the drayman the ability to offer a much better service to customers.
Hans Stig Moller, CEO, Bridge Terminal Transport Services