Today’s Pickup: OOIDA explains why Supreme Court needs to consider ELD case

Supreme Court

Good morning.

While FMCSA’s electronic logging device (ELD) rule seems like a done deal, the Owner-Operator Independent Drivers Association (OOIDA) has not thrown in the towel quite yet. Set to go into effect in December, the rule would require most truck drivers to use ELDs to record hours of service compliance rather than paper logbooks.

There is plenty of debate on whether this rule will impact productivity and shipping rates, but OOIDA believes it has a more chilling impact. “We believe that the Seventh Circuit erred in allowing warrantless searches of 3.5 million drivers, designed specifically to uncover evidence of criminal activity. In doing so, the Seventh Circuit decision splits directly with rulings by both the Fifth and Eleventh Circuit Courts,” OOIDA President Jim Johnston is quoted in LandLine Magazine’s latest blog.

OOIDA is hoping the U.S. Supreme Court will take up the case and eventually strike the ELD regulation.

Did you know?

A survey conducted by Transplace last fall found that 56% of fleets with more than 250 trucks expected to see their utilization decrease once ELDs are fully implemented. Of fleets with fewer than 250 trucks, 64% expected to see a decrease.

Quotable:

“I have to admit that April’s contraction is a bit surprising, especially considering the anecdotal reports I’ve been hearing from fleets regarding freight levels. It’s not necessarily that tonnage levels fell in April that is surprising but the size of the decrease.”

- Bob Costello, ATA chief economist, following the announcement of a 1.8% drop in truck tonnage for April.

In other news:

The tax that won’t go away

Republicans in the House continue to push for a border adjustment tax that would tax imports, even as businesses, free trade advocates, the White House keep fighting against the proposal. (Wall Street Journal)

Tonnage falls in April

Even as executives are expressing optimism over the economy, April tonnage numbers took a dive. American Trucking Associations reported a 1.8% drop in April compared to 2016. (Transport Topics)

Truck safety starts in grade school

With government data suggesting the majority of truck-related crashes are the fault of an automobile driver, stakeholders in the U.S. have pushed road safety plans. In New Zealand, the government has taken it a step further, teaching safety around trucks in the schools. (Scoop)

Trump’s budget could welcome more tolls

President Donald Trump’s proposed budget offers some insight into his infrastructure plan, including a loosening of restrictions on tolling and more private investment in rest areas. (Fleet Owner)

Last mile help needed

With the last mile becoming so critical in an e-commerce world, Supply Chain Dive provides a look at how participants in the supply chain need to work together to make the delivery process work. (Supply Chain Dive)

With all the good vibes recently about the economy, April’s truck tonnage drop is a bit surprising. Is it a sign of things to come, or simply a monthly deviation? Time will tell.

Hammer down everyone!