eld may2016
TRANSCRIPT
SCHNEIDER NATIONAL
1
Q1 201
6
Q2 201
6
Q3 201
6
Q4 201
6
Q1201
7
Q2 201
7
Q3 201
7
Q4 201
7
No curr
ent p
lans
0%5%
10%15%20%25%30%
When do you plan to be ELD compliant?
Percentage of carriers surveyed
ELECTRONIC LOGGING DEVICE COMPLIANCE WILL DRIVE MANY SMALL CARRIERS OUT OF THE MARKET
• Smaller carriers are not prepared for the ELD mandate and will be waiting to the last minute to implement
• The FMCSA estimates 93% of all carriers have 20 trucks or fewer
• This will impact 3.1 million drivers, 67% of driver population (Journal of Commerce)
• “[With the ELD mandate] … we, along with the vast majority of small carriers, will CEASE operations.” – Carrier Survey Respondent
PROPRIETARY AND CONFIDENTIAL
16%
84%Yes
No
Do you currently have ELDs imple-mented?
Source: Truckstop.com
Source: Schneider Independent Study of 700 carriers, February 2016
SCHNEIDER NATIONAL
2
A SIGNIFICANT LOSS OF PRODUCTIVITY IS EXPECTED WITH THE IMPLEMENTATION OF ELDS AMONG SMALL CARRIERS
• We experienced 3-4% productivity loss when we implemented and Schneider is a “by-the-book” carrier
• Hours of Service penalties and the lack of safe places to rest, are causing drivers to go off duty when they still have hours, further affecting productivity
• Prime, Inc. and Marten Transport have both reported nearly 20% loss in productivity with ELD implementation
• The combination of ELDs, speed limiters and hair follicle drug testing could combine to reduce effective industry capacity by more than 15%
PROPRIETARY AND CONFIDENTIAL
Source: Stifel: Transportation - Key Takeaways from Truck Driver Pay Call, 02/29/2016
Productivity loss for carriers that have already implemented ELDs
SCHNEIDER NATIONAL
3
THE ELD MANDATE IS SIMPLY THE RIGHT THING TO DO• Safety is our number-one core value, ELDs make the roads more safe
• ELDs will make it more difficult for drivers to misrepresent driving time, reducing Hours-of-Service violations
• Hours of Service compliance reduces driver fatigue and is expected to eliminate more than 1,844 crashes per year
• By reducing crashes, ELD compliance will result in 526 fewer injuries and 26 fewer fatalities per year
PROPRIETARY AND CONFIDENTIAL
Source: The Federal Motor Carrier Safety Administration
SCHNEIDER NATIONAL
4
SHORT-HAUL DRAY CARRIERS NOT USING ELECTRONIC LOGGING DEVICES WILL LOSE 15% OF DAILY CAPABILITY • The FMCSA has granted a Short-Haul
Exception to carriers/drivers who operate within a 100-mile radius and start at/return to the same location each tour
• The exception permits these carriers/drivers to operate using “timecards” instead of ELDs
• Carriers/Drivers using the exception however, will lose 2 hours of work time per day as the FMCSA mandate will limit the work day to 12 hours instead of 14 hours for those using ELDS (with at least 10 hours off in between)
PROPRIETARY AND CONFIDENTIAL
SCHNEIDER NATIONAL
5 PROPRIETARY AND CONFIDENTIAL
SCHNEIDER NATIONAL
6 PROPRIETARY AND CONFIDENTIAL