The potential impact of Canada’s electronic logging device (ELD) on a trucking company is still unclear but this US mandate will impact the capacity of cross-border trucking and Canadian carriers. Unless they start preparing now, Canadian shippers as well as US shippers that are dependent on southbound cross-border traffic can expect diminished capacity, disruption of the supply chain and increase in rates under the Canadian ELD mandate.
When the US Mandate took effect last December 2017, Canadian drivers of XTL Transport that were crossing the US border for decades said that they prefer to drive domestically. They do not want the hassle because it is difficult to be creative to be able to deal with it. A lot of Canadian carriers also stopped running the border particularly the smaller trucking companies.
According to Andrew McVerry, director of business development at XTL Transport, that impact to the market of the mandate was considerable and many of the small carriers have decided to realign their business to be domestic. The realignment resulted in 30% decrease in cross-border capacity last year. It is expected that smaller shippers will feel the biggest impact from the Canadian mandate.
However, the big shippers that have been affected by the US mandate will be better prepared to secure their capacity in the coming months. The logistical impact of the Canadian mandate will be considerable on Canadian drivers that travel longer distances than their US counterparts.
Canadian shippers that were affected by freight delays at the border due to the US ELD Mandate have adjusted their transport networks. For example, Canadian Tire started to minimize shipping points and increased the size of their private fleets. The company is also looking for carriers that have staging points close to the US border so that domestic trucks can stay in Canada.
If you have oversized and overweight shipments, your best option is a trucking company that has both standard and specialized equipment. Double drop RGN’s are specialized trailers that can haul heavy and oversized equipment. There is low deck in the center that can accommodate high loads that would otherwise be too tall for other carriers.