Working Overtime: How air cargo is adapting to ACAS, ELD rules

The push toward digitalization

The push toward digitalization in the logistics industry has emerged as a theme in the media. But taking the knotted nature of the supply chain into account, it has prompted many to wonder how the industry as a whole should approach implementing digital processes that promote cross-supply chain communication, with so many different SaaS firms competing for companies’ business.

A digital reality may be coming to fruition by necessity, rather than by volition. While both the ACAS requirements and the ELD mandate were born in the name of safety and security enhancement, both of them, by proxy, require stakeholders to comply with digital processes, which strongly encourages them to embrace digitalized processes internally, as well.

While those affected by both the ELD mandate and the ACAS requirements have experienced and continue to experience growing pains associated with adapting to digital processes, and are likely reeling from the cost of initial investments in hardware and software, in the long run, the software could significantly optimize operations.

Digitalization makes data exchange faster, lowers costs and, ultimately, gets cargo where it needs to go faster than was possible with traditional paper-based processes. Beyond logging hours, many ELD devices are able to collect data like a truck’s GPS-location, temperature and current traffic. “Collecting data lets them know where [a shipment] is at a certain time,” Hodgson said, giving companies more accurate ETAs, which is useful, especially if it’s projected to be late. In that case, companies are enabled to react to these factors. “Getting that visibility certainly helps plan better.”

Halkertson’s ELD provider allows Hassett Express to collect data like Hodgson describes above. “I firmly believe that if you’re going to invest in these devices… leverage their uses,” she said, naming GPS-tracking, communication features and accident-data as some of the elements they looked at when selecting their ELD vendor.

Regarding ACAS, requiring carriers to submit data electronically about their shipments to the U.S. government forces companies to embrace digital processes, which are less time-consuming and eliminate paper-based issues, like duplication. While companies configure new hardware and software to meet these new regulations, there may be some delays and extra costs to grapple with in the meantime. “Really, the impacts are the changes to the business process,” Sangster said. “There is a collaboration factor that has to happen between the forwarders and the airlines if they’re going to file jointly and there is obviously a potential impact on the business for cargo not flying as planned or booked because there’s a hold for inspection or other requirements.”

After a period of adjustment, however, such mandates could help finally kick the digitalization of the industry into action. Perhaps the mandate of digital submissions of data to the government is a blessing in disguise.

Once data are being managed digitally, it is able to be utilized to promote better communication and supply chain visibility internally, as well as with customers and business partners. It also opens up a world of more accurate data forecasting and risk management, which means companies will be able to make better-informed decisions.

Perhaps next year, when you receive a desperate message from a customer, you’ll be able to guarantee with more certainty that they will receive those critical machine parts before the production line must be shut down.

Now all that’s left for the industry to do is figure out how to digitalize operations while keeping the supply chain engine running smoothly.