How CalArk leveraged tech to benefit from short-haul ELD exemption
Carrier found local drivers couldn’t take advantage of exception because it required manual tracking
7 minutes read
As CalArk grew its local delivery fleet, it realized drivers could not take advantage of a short-haul exemption from ELD rules with current technology. So it built a new system. (Photo: CalArk)
In May 2020, the Federal Motor Carrier Safety Administration changed the hours-of-service rules that govern the workdays of the nation’s truck drivers. “The Department of Transportation and the Trump administration listened directly to the concerns of truckers seeking rules that are safer and have more flexibility — and we have acted,” said Jim Mullen, who was the acting administrator for FMCSA at the time. “These updated hours-of-service rules are based on the thousands of comments we received from the American people. These reforms will improve safety on America’s roadways and strengthen the nation’s motor carrier industry.”
For trucking companies operating in the final mile or local delivery space, though, one change created a problem: the short-haul exemption. The exemption had existed previously, but changes under the new rule, along with the introduction of ELDs in 2017, meant more complexity for fleet managers and drivers. One of the fleets that struggled with the new rule was CalArk International. Based in Little Rock, Arkansas, CalArk specialized in dry van truckload service for most of the years since its 1975 founding. But in 2018, the company entered the local delivery space, primarily handling dedicated freight moves from distribution centers to stores. The average local delivery driver makes 15 stops a day using a CalArk box truck, said Ray LaPrade, vice president of information technology for the company. ELDs for all
Unable to accurately separate hours for local drivers — most of whom did not require a CDL — from those of over-the-road drivers who required CDLs and therefore had to follow HOS and ELD regulations with existing technology, CalArk decided to have everyone operate on the ELD. From there, the back office painstakingly differentiated the drivers according to their proper status. In addition to the added office work, it led to more time contesting roadside violations of drivers who were exempt but couldn’t prove their status at the time. “There are several aspects to our program, but the missing piece had been a system to track/manage compliance that fit us,” explained Leslie Stout, director of safety for CalArk. “We didn’t want to have to add a substantial amount of work to anyone or add staff to manage a system, which is often the case when implementing new technologies.”
For fleets with only local delivery operations, the exemption rarely came into play. But for the growing number of larger fleets developing mixed operations (local and truckload OTR) and seeking shorter, more frequent hauls to address greater consumer reliance on e-commerce, the new rules presented challenges. Manual management
LaPrade said CalArk reached out to fellow carriers with local delivery operations to see how they handled the situation. There are several aspects to our program, but the missing piece had been a system to track/manage compliance that fit us. Leslie Stout, director of safety for calark
“The response we got was [they] really didn’t have a system for this,” he said. “What we found is people manually managing it once they qualify a driver [as exempt].”
For CalArk, the 2020 change to the short-haul exemption was potentially a big plus – if it could figure out how to manage it. The change lengthened drivers’ maximum on‑duty period from 12 to 14 hours and extended the distance limit within which the driver may operate from 100 air miles to 150 air miles. That meant that of CalArk’s 300 local drivers, more than 80% now qualified under the exemption. “Just flip a switch and turn it on. I wish it was that easy,” LaPrade said. “What prevented the entire program from rolling out was the missing piece of a system to manage it. We knew 80%-plus of our drivers qualified for this. We generally knew how to flag them under our ELDs, but how do you track and manage them? We weren’t comfortable rolling this out without a way to track and measure it.”
The need for a way to effectively manage an exemption program for fleets like CalArk is growing as more retailers turn to ship-from-store operations to handle e-commerce orders. That means more local delivery fleet operations as retailers require more frequent store deliveries, although not always full trailers of items. LaPrade said he spoke with several ELD providers but no one had an integrated system to manage the exempt drivers the way CalArk felt it needed to be done. The 3 a.m. idea
“[It was] one of those 3 a.m. thoughts I had one night — the best thoughts come at 3 a.m. when you can’t sleep. I started thinking about what was required to track drivers,” he said. “I was thinking about the underlying data that would be required, the type of workforce [and staff to manage it]. I scheduled a call with a trusted software vendor and bounced the idea off them. We looked at the files and it really snowballed quickly from there, and I relayed the design of the system, how I wanted it to work. All of the data was already there; we just needed to save it in a different manner.”
That vendor was Add On Systems , which helped CalArk design a recording system that would sit on top of its Omnitracs ELD system. “We have a system that is 100% compliant with FMCSA rules,” LaPrade said. “We have been able to roll the system out to 80%-plus drivers in the division. The strategy for our user experience was truly to manage by exception. We have screens that anyone can look at and see what they want, but anytime a driver gets anywhere close to being out of compliance, we get notified two days in advance so we can proactively adjust their duty.”
We have a system that is 100% compliant with FMCSA rules. We have been able to roll the system out to 80%-plus drivers in the division. ray laprade, vice president of information technology for calark
To utilize the short-haul exemption, carriers need to make a number of determinations, including whether the driver will have to log more than eight days in a 30-day period. If so, the driver might be on an ELD for much of that time, and maintaining two separate record systems could create excess work and confusion, and potential violations as a result. LaPrade said ELDs are still used, but once the driver logs in, the system identifies that driver as a local delivery driver operating under the short-haul exemption. The ELD still tracks the vehicle and driver “to ensure those pings are associated with that driver and to be sure they are within the 150 air miles,” LaPrade said, but the software eliminates the need for more manual changes and monitoring of the driver. Profile-based compliance
Should that driver need to move out of exempt status, office staff alter the profile of the driver as needed. Drivers themselves can’t change their status, preventing a nonexempt driver from going exempt to avoid violations. “Once they are qualified [as exempt], they can log into the system in any truck,” LaPrade said. “A nonexempt driver can use the truck as well and the system follows them [ to record their correct status].”
The system tracks all drivers’ starting point, finishing point, the truck they are in and whether they travel more than 150 air miles from their starting location each day. From an operational standpoint, Curt Vernon, vice president of warehouse services at CalArk, said the system has provided clear benefits since it was rolled out in October. “First and foremost, the majority of our drivers fall under short-haul exemption, and the required interactions with our in-cab devices have streamlined the required actions of the drivers, thus making it easier for them to perform their duties,” Vernon said. “An integral part of our program was providing cab cards that detail the program, and instructions on how to communicate with law enforcement to show we’re in compliance with legal guidelines. This has certainly led to fewer violations, which ultimately benefits our drivers and assists us in sustaining our premium level of service for our customers.”
Watch: Are truck drivers happy? LaPrade said the cab cards are essentially detailed instructions for drivers on how to handle the interaction with officers, where to find the correct information to prove exempt status and how to transmit that information. Tweaks lead to better system
CalArk introduced a second version of the system in March, hoping to address some of the issues, including false positives, that were occurring. To date, those have been alleviated and the system is working perfectly, LaPrade said. “We now have the missing piece, which allowed our program to roll out very quickly and successfully,” Stout noted. “We’re compliant under FMCSA rules, and after the initial rollout, it really is a manage-by-exception philosophy — we’re notified when a driver is approaching noncompliance thresholds, but with enough time to proactively change the driver’s duties or migrate them to the traditional ELD. Either way, we’re compliant with every driver, regardless of the situation.”
Like most fleets, CalArk puts a premium on safety and compliance. “We’ve prevented violations and we know the number has gone down,” LaPrade said, although he didn’t know the exact number of violations averted. “Prior to implementing the system, we were running into violations that we shouldn’t have.”
He added that as a policy, if a driver is consistently moving back and forth between exempt and nonexempt status, CalArk moves that driver to nonexempt to simplify the process and create continuity. But more than 80% of its local drivers are now spending less time managing compliance and the fleet is amassing fewer violations. “We felt pretty good about our commitment to safety, but the system to track [status was the missing piece,” LaPrade said.

How CalArk leveraged tech to benefit from short-haul ELD exemption

FreightWaves Classics: Trucking companies’ names range from A to Z (Chapter 14)
CalArk's tractors and trailers are distinctly marked. (Photo: Jim Allen/FreightWaves)
Deregulation of the U.S. trucking industry began in the late 1970s. Congress passed the Motor Carrier Act of 1980 and it was signed into law by President Carter on July 1, 1980. This ended 45 years of onerous regulation by the federal Interstate Commerce Commission (ICC). One of the most dramatic changes that occurred due to deregulation was the virtual explosion in the number of trucking firms. From 1980 to 1990, the number of licensed carriers doubled – from fewer than 20,000 to more than 40,000! Forty years after the deregulation of the American trucking industry, truckinginfo.net estimates that there are 1.2 million trucking companies in the U.S. About 80% of these trucking companies are regarded as small businesses, with six trucks or less. Although the industry is still regulated by the U.S. Department of Transportation, the opportunities to enter the trucking industry have broadened dramatically. It is estimated that there are now over 15.5 million trucks on the road; about two million are tractor-trailers. FreightWaves Classics and the FreightWaves Haul of Fame will continue to highlight a number of these American trucking companies. FreightWaves Classics will also feature the photography of Jim Allen, who shoots, supplies and/or finds the majority of the photographs used on FreightWaves.com. Some might say that “trucks are trucks…” and that is true to a degree. But every company has its own story. Moreover, almost every trucking company’s tractors and trailers have their own identities – different paint jobs, logos, decals, messages, etc. And for many of us involved in transportation, looking at them never gets old! CalArk founder Tom Bartholomew and daughter Rochelle, the company’s CEO. (Photo: CalArk)
CalArk International
CalArk International was founded in 1975 and is based in Little Rock, Arkansas. The company offers irregular route, general commodities contract services to locations throughout the continental U.S., as well as door-to-door service in/out of Mexico via Laredo, Texas. Its last-mile services reach the mid-South and Southeastern U.S. The company prides itself on a driver-oriented, family-friendly environment. Founder Tom Bartholomew started as a driver. He started CalArk with three trucks. CalArk’s current CEO is Tom’s daughter, Rochelle. She also understands what drivers face on the road every day. CalArk still has a family atmosphere rich in friendship and appreciation. The company is in the top 500 of more than 770,000 for-hire trucking fleets in the United States (Fleet Owner’s 2019 For-Hire 500: The Top Carriers in North America). However, most of its office employees have been with the company for years and some for decades. A privately held, asset-based company, CalArk has more than 600 tractors and more than 2,200 dry van trailers. Among the third-party logistics services CalArk provides to customers are: warehouse services such as storage, trans-loading storage and pre- and post-production storage; distribution services such as pool distribution and deconsolidation for last-mile delivery, as well as cross-docking; pick-pack fulfillment, kitting, sub-assembly, repackaging and labeling, etc. ; cartage; last-mile delivery service; white glove services for items requiring extra-special handling; and residential deliveries. CalArk has a 650,000+ dry and temperature-controlled warehouse facility at its headquarters in Little Rock, Arkansas. It also operates smaller warehouse facilities in Alabama, Georgia and Tennessee. CalArk also owns two subsidiaries – Central Hauling Company and Arkansas Equipment Leasing. Central Hauling is a dry van truckload carrier. Its fleet operates across the continental U.S. and in Mexico. The fleet’s average length of haul is 1,000 miles, with a 3-1 trailer ratio, allowing numerous drop and hook loads. Arkansas Equipment Leasing repurposes CalArk trucks that are no longer needed, primarily for sale to independent contractors who are ready to drive and own. The company offers lease to purchase options. It also repurposes trailers for sale. A Calex tractor-trailer on the highway. (Photo: Jim Allen/FreightWaves)
Calex Integrated Supply Chain Solutions
Calex Integrated Supply Chain Solutions provides truckload transportation, warehousing, real estate development and a number of other asset-based third-party logistics services. The company has operated from Pittston, in northeast Pennsylvania, since 1974. Calex transports a range of products, from raw materials to fragile consumer goods, throughout the U.S. Its transportation services include temperature-controlled refrigerated van, dry van, Conestoga and flatbed freight services (for products that require specialized shipping). Its dry van services are generally east of the Mississippi River. Its vans have a 48,500-load capacity, an 8% competitive advantage over many carriers. Calex’s fleet has a CSA rating from the Federal Motor Carrier Safety Administration that exceeds the industry standards. It can also boast a 99.7% on-time service history. The company’s transportation capabilities connect customers to nearly 50% of the U.S. population with same or next day delivery from its facilities. Its trucks cover nearly 15 million miles annually. Calex has the trucks, drivers, warehouses, and asset-based logistics to help its customer base maximize efficiency in their supply chain management and distribution networks. Calex also offers supply chain management solutions that can fully integrate its storage and transportation services. The company’s warehousing facilities are company-owned and operated and offer the latest technology for inventory control and warehouse management. The company provides food-grade storage, dry storage, refrigerated and frozen storage, outside storage, as well as short- and long-term storage. Calex also offers various warehouse fulfillment operations/services, including cross-docking, de-container, pick-and-pack solutions, high-speed shrink wrapping and automatic labelers. The Calex warehousing system and technologies allow customers to increase distribution options, reduce risks associated with storage and consolidate  business operations. A Callaway Carriers tractor-trailer moves down the open road. (Photo: Jim Allen/FreightWaves)
Callaway Carriers, Inc.
Headquartered in Kingdom City, Missouri (about 30 minutes from the state capital in Jefferson City), Callaway Carriers began operations in 1992. A regional dry van truckload provider, Callaway Carriers primarily offers service from central Missouri and Kansas to the Midwest and southeastern U.S. Other service areas include New England, North and South Dakotas, Texas and Colorado. A CanAmex rig passes a highway sign. (Photo: Jim Allen/FreightWaves)
CanAmex
An asset-based operation, CanAmex was founded in 1996. Based in Mississauga (near Toronto), Ontario, the company also has operations near Memphis, Tennessee. Temperature-controlled commodities are a specialty of CanAmex. The company works with major food retailers and provides cool, frozen and ambient transport of all fresh, frozen and dry good commodities. Along with its extensive reefer fleet, CanAmex also has dry van and flatbed trailers to meet the needs of customers and the products being shipped. The company transports food products, fashion goods, appliances, beauty supplies, floor coverings, patio furniture and industrial goods such as building supplies and insulation. CanAmex’s fleet transports freight throughout Canada and provides both truckload and less-than-truckload service between Canada and the Midwest, Southwest and the Atlantic seaboard. The company supplements its fleet with owner-operators. The company also offers contract and dedicated warehousing solutions, yard management (including shunting service) and freight management services to increase coverage and capacity throughout North America. A Carbra Trans, Inc. truck moves across the prairie. (Photo: Jim Allen/FreightWaves)
In addition, CanAmex owns Carbra Trans, Incorporated. It is a licensed and bonded freight shipping and trucking company running a freight hauling business from Listowel, Ontario. Caravan Logistics’ logo is easily seen on the side of its trailer. (Photo: Jim Allen/FreightWaves)
Caravan Logistics, Inc. The Caravan Group of Companies was started in 1997 by its three owners. They formed one of Canada’s premiere, privately owned, cross-border transportation carriers. Based in Oakville, Ontario, Caravan offers truckload, less-than-truckload and dedicated freight service, as well as third-party logistics and warehousing. Caravan’s fleet of more than 450 satellite-tracked power units deliver freight across Canada and cross-border to and from the continental United States. It has both dry van and temperature-controlled trailers. The company has more than 50,000-square feet of cross-dock and warehouse space at its locations in Ontario, Quebec and Manitoba. In addition to Oakville, Caravan also has another location in Ontario in the city of  London. Additional locations include Vaudreuil-Dorion (Montreal), Quebec; Winnipeg, Manitoba; Regina, Saskatchewan; Calgary, Alberta and Chicago in the United States. Tags

FreightWaves Classics: Trucking companies’ names range from A to Z (Chapter 14)

Transflo is a provider of electronic revenue cycle, document management, and invoicing solutions for the transportation industry. Transflo Express is a document transmission solution preferred by drivers, transportation carriers, and travel centers across North America.

Transflo

`` CalArk has enjoyed a well-established relationship with Pegasus whose products continue to help improve efficiency within our organization '' said Matt Braslavsky , VP of IT for CalArk .

Pegasus TransTech Announces New Partnership with CalArk - Transflo

CalArk is a transportation company that provides logistic services. It is based in Little Rock, Arkansas.

Wells Fargo Success Story

Professional Services

Platform Overview

CalArk

Compete with CalArk?

Compete with CalArk?

Discover the right solution for your team