ELD Mandate News Update – Full Enforcement Effective December 2019
The eld mandate date delay news enacted on December 18, 2017, and came into effect, requiring that nearly all CMV’s be required to use electronic logging devices (ELD’s).
Every vehicle affected by this new eld mandate must have their ELD’s installed by the deadline in December, 2019, or else face a fine. Maybe you are still wondering What is ELD? In that case you can check our article: What ELD stands for?
With the final deadline approaching, we have compiled a list of information regarding everything you need to know about ELD Mandate News and ELD compliance.
Why is it important to be up to date with the ELD mandate News Today?
During the soft enforcement period (from Dec 31st to April 1st, 2017), the FMCSA did not issue any out of service orders.
During this period, the driver and the company mostly spared from receiving hefty tickets.
Also, the violation of the ELD mandate did not count against the carrier’s safety score.
However, all of that is going away by December deadline for eld mandate 2019. In our post e logs for owner operators we go through the best eld manufacturers (all of them FMCSA approved ELD).
Fines and Penalties For non-compliance with ELD Mandate
Points and Safety Score reduction – Hours-of-services(HOS) violation count against your safety score. A lower safety score will lead to higher insurance premiums.
Court Appearances – If the hours-of-service violation happens more than one, the driver may be forced to appear in court for reckless driving or endangerment.
Out-of-Service – If the driver violates hours-of-service, he/she will be put out-of-service. Being out of service means being stuck in the truck inspection station for 10 hours. The detention of 10 hours is required since the officer is assuming you’ve been driving all day. Hence, you need to rest for ten days to achieve your daily reset. Also, you may be required to relax more if you are close to reaching your weekly limit of 60 hours.
Hefty Fines – Estimation shows that during the soft enforcement period, FMCSA issued close to $64 million tickets and fines.
CDL Driver License Suspension – A driver that repeatedly caught with Hours-of-service violation will risk losing his/her CDL driver license
ELD Mandate Potential fines
Since the ELD mandate went into effect as of December 18, 2017, any nonexempt vehicle must be equipped with ELDs or risk fines and citations according the law.
The severity of the fine will vary under the discretion of the inspector or issuer, and repeat citations can only harm your business.
Enough citations can even attract the attention of federal investigators, so there’s no reason to delay installing your ELD.
In some cases, a citation or fine can be just as severe or worse for business than a vehicle or driver out-of-service.
The out-of-service deadline was extended to April 1, 2018 to help business and drivers gets used to the new mandate and become more familiar with their ELD devices.
Because the e-log devices s replace logbooks, any driver without an ELD would face the same penalty they would have if they didn’t have a logbook with hours of service (HOS), which is out of service.
For those who have not experienced out-of-service situations, it can have a negative impact.
After the initial citation, a vehicle is labeled out-of-service until the ELD is installed, and all of the necessary paperwork has been processed.
Both the driver and carrier must file extra paperwork, during which the driver will not be allowed to drive, and the vehicle cannot be driven.
This type of situation would place a severe strain on resources and can negatively impact reputation.
Out-of-service conditions also add extra administrative hours for processing paperwork and handing procedures, wasting both the carrier and driver time and money.
Previous years had shown that one of the top reasons for driver compliance violations involved poor bookkeeping and drivers forgetting or losing HOS records.
By automating this process, so, as long as your driver has a certified and function ELD device, you should never have to face HOS compliance-related violations again.
Impact of ELD Mandate on Trucking & The Economy
Despite what many drivers, owner-operators, and industry experts believed, the ELD mandate is not going to be canceled by the Trump Administration.
Further, Republicans typically believe in less regulation. Moreover, republicans believe that less regulation means more significant and more profitable business.
And this is especially true in the trucking industry. However, unlike the steel industry, there is a lot more at stake.
The trucking industry supplies all of the other sectors. The trucking industry is the backbone of the economy.
Therefore, any regulation in this industry would hurt the economy.
Thus making the ELD Mandate a terrible news which would hurt the trucking industry and the economy.
How Is ELD Mandate Affecting the Industry
So, what was the impact of the ELD mandate?
It was thought that there could be a means of measuring the loss of market hours with all carriers using ELDs, but the data will not be reliable until ELDs are widely used.
A survey of Bobit Research reported in March and April 2018 that 29 percent of fleets needed to meet the ELD mandate hadn’t yet done so.
Find below some aspects particularly affected by the mandate,
ELD Mandate Impact on Capacity and Productivity of Trucking Companies
The HoS is fully complied with by small and independent transport companies working under the regulatory radar. And this was predicted to cause a decline in productivity of the driver.
This ELD mandate would create a capacity shortage equal to about 200,000 to 300,000 trucks based on the forecasts.
Although this figure may be small, the effects on the industry will likely increase in 2019 and beyond.
Lower Insurance Premiums
Increased compliance and driver & vehicle monitoring by implementing the ELD mandate will also lead to safer roadways construction, lower speed limits and accidents, and lower insurance premiums.
Congestion of Parking Area
It was discovered that sometimes a trucking company could cost between 1 to 2 loads a month to lose profitability due to parking and traffic problems, which in turn can cost between $1,000 and $5,000 a month.
The implantation of the ELD will also affect freight rates.
The average fleet size of the 71 percent of independent truckers is 5–10 trucks. Therefore, the shippers total loss in the future is expected to be around 2,60,000 to 3,00,000 vehicles.
And it would also result in significant truck shortages, about 5–8 percent market losses, and higher freight rates
Carriers are currently experiencing a shortage of drivers to transport freight; thus, they would be forced to increase tariffs to help make up for unused overheads.
The linehaul rates without fuel surcharges of spot van are 2.2% higher year-over-year. Linehaul rates of a flatbed truck are 2.9% higher.
Spot rates are volatile and are negotiated individually between small carriers and independent truckers and brokers.
And the contract rates movement that are long-term arrangements between carriers and shippers has continued to slow down.
Drivers Quitting Their Job
Drivers between the age range of 45–49 years were willing to leave their jobs before the ELD mandate deadline; this would result in the industry attrition of more than 25% of drivers.
Finding trained drivers will be difficult for shippers and carriers, and by 2022 the total tractor-trailer driver shortage is expected to be around 239,000.
Should ELD Mandate be reversed?
Eld mandate 2019 deadline is here. Despite having Anti-Regulation Government, the ELD Mandate was not stopped. And many people are attributing this to the lazy nature of governments.
On the other hand, one can understand that the ELD Mandate was planned and pushed back for over ten years now.
Now, eld mandate delay news is finally here and no government official is trying to fight it.
Further, drivers were forced to drive long hours to make a decent living.
However, freight brokers were getting rich on top of the hard-working drivers. The ELD mandate is attempting to better the driver’s work conditions.
However, in reality the burden is currently failing on the shoulders of the drivers. The drivers cannot make more miles due to the ELD restriction.
Therefore, fewer miles driven per week means less money for the driver and the owner-operator.
With the eld mandate 2019 deadline aproaching, the only way to stop this is to form a coalition. Drivers, owner-operators, and other trucking companies will demand higher rates per mile due to the ELD restriction.
In that case, the ELD mandate would be a successful ruling.
Will There be another ELD Mandate delay after December 2019?
The ELD mandate is a U.S. federal law mandating the use of ELD (Electronic Logging Devices) by drivers of commercial vehicles.
ELD devices are designed to capture driver activity and commercial motor vehicle operation data for hours of service reporting purposes.
On 16 February 2016, the regulation on electronic logging devices became law. The deadline for the ELDs to comply was 18 December 2017.
However, for vehicles fitted with AORBDs, the units should either be replaced or modified by 16 December 2019 to satisfy the ELD requirements.
Will be the ELD mandate postponed? With the eld mandate 2019 deadline approaching, the question remains if there will be another eld mandate delay news after December 2019.
FMCSA Delays Procedure for Service Hours (HOS)
In 2018, as the deadline for ELD implementation is approaching, the FMCSA suggests changes to the law and has recently announced a eld mandate delay news in the revised HOS rules.
A representative of the FMCSA stated: “The proposed rule of the FMCSA on amendments to the hours-of-service (HOS) regulations are still being reviewed by the Management and Budget Office (OMB).
The timelines in the regulatory updates of the Department serve as targets for the Agency and represent the strategy of FMCSA to hurry during this phase of rulemaking.
Livestock haulers Raise ELD concerns
Administrators from the livestock haulers industry have been expressing strong concerns about ELDs to congress members.
In 2018, the Transportation Department sought to change the Hours of Service regulations after livestock haulers express concerns regarding the current lack of flexibility for the agricultural sector in the ELD requirement.
They claimed drivers require greater flexibility from federal regulations on hours of service when transporting livestock.
Therefore, it becomes apparent that somehow the one-size-fits-all regulation might not always meet the operating requirements of some industry.
ELD Compliance Exemption for ag, Livestock Haulers
Livestock haulers are persistent in their objection to the ELD law of the Federal Motor Carrier Safety Administration.
And in response, the financing law for fiscal 2019 established an exception for livestock. And this is included in the bill signed by President Trump Feb. 15, 2019
However, the scope of the exemption will be broader than this, and it will also apply to ag haulers who are not transporting livestock.
ELD Mandate Overview
The new ELD mandate news is accomplishing a variety of goals.
Among these goals include: reducing manual labor for both drivers and administration, increasing safety and transparency, and improving cost-effectiveness. <
Complying with the new ELD mandate means that you will be investing in new technology and services that reduce the manual labor hours for everybody in your fleet.
The ELD devices are designed to help plan and completely record a driver’s schedule, including breaks, rest hours, driving hours, hours of service (HOS), and all driver-related credentials.
Paper VS. Electronic Logs
Before, drivers needed to manually fill out HOS and driving forms to make sure they complied.
Apart from adding extra working hours for manual labor and increasing the overall expenditures for companies, these old forms were also difficult to regulate and monitor.
Paper forms are convenient. However, drivers are changing the paper log as they see fit.
All of those are not a problem with the electronic logging devices.
ELD systems require that all recorded information is tamper-proof, particularly where driver-hours are concerned.
The ELD mandate also provides provisions that make it harder for carriers to harass drivers.
Besides making it impossible for a courier to tamper with driver’s hours, it also means drivers will have greater access to uninterrupted rest time.
According to the ELD mandate, ELD devices are available with a mute function.
And this function is there to prevent driver interruption or harassment during rest hours and breaks (though certain ELD’s allow volume to assist drivers by reminding them to take breaks or when a break/rest period is finished).
In other words, ELD’s are helpful when you need them to be and will never be disruptive.
Where can you get an ELD? What type should I get?
The first place you can consider looking for an ELD is the FMSCA website, which has a complete list of all certified and registered ELD providers.
While you might recognize a few names on the list, this list doesn’t tell you much about the ELDs.
It also doesn’t offer much information about the services they provide. Nor does it clarify the quality and costs of these services.
To understand more, research and consultations are paramount. Kindly fill our consultation form and we will help you to find a suitable ELD solution for your business.
Here’s a little information about how to find the type of ELD that fits your business best.
When looking for an ELD device, you will come across two basic categories: BYOD (bring your device) ELDs, and devices with an integrated touchscreen GPS.
BYOD systems typically rely on the carrier or driver supplying a smartphone or tablet.
Either one of those is essential to work along with the device, while integrated systems provide the GPS or touchscreen interface.
Positive Effect of ELD Mandate in The Trucking Industry
With the new ELD law in effect, many of those in the transportation sector are curious if it would have a positive or negative impact on the industry as well as its employees.
Below are the ELD mandate advantages to the trucking industry:
Safety is always the driving force behind the ELD mandate. And about 3 million vehicles on the road were covered by the ELD mandate.
An FMCSA report estimated that, due to driver fatigue, the ELD law would prevent about 20 deaths and 434 injuries every year.
The ELD requirements ensure that all drivers meet basic safety and compliance requirements by quitting the paper and pen approach and implementing the ELD model.
With the use of ELD, vehicle safety is increased by achieving the following:
- Reducing distracted driving
- Reporting on unsafe driving
- Helping drivers (and management) monitor speeding
- Sending roadside assistance to a driver during a breakdown
ELD’s are expected to save around $1.6 billion a year as a result of less paperwork, according to the FMCSA.
Eventually, reduced costs through lower fuel cost, lower downtime for trucks, and lower accident rates.
Although the savings are incredibly impressive, however, they compensate for the cost of using the ELD.
While avoiding long routes and unnecessary turns, once drivers gain access to hands-free guides to their location, the cost of fuel is reduced, and their customers are happy as drivers turn up on time.
Most providers of GPS and telematics combine ELDs with fleet management software to ensure that all the data is kept safely in one device.
Drivers waste more than 20 hours every year on paperwork, or about 15 minutes per day of work, according to the FMCSA.
Before the ELD requirement, industry experts predicted that ELDs would have a 3% – 5% effect on the profitability of carriers, especially on routes longer than 450 miles and short-haul operations of up to 300 miles, which bump against the 14-hour law.
Larger fleets also figured out a way to retain productivity by calling out other trucks to pick up a load if the driver of business is late or out of hours.
The fleet must fulfill compliance through HOS with the use of an ELD.
Being compliant with HOS becomes extremely easy through the use of an ELD – when it’s time to stop driving, drivers can receive alerts; decreasing the number of violations received and continuing to increase road safety.
If your fleet works with a fleet management system, service provider or GPS provider, chances are these companies also provides ELD solution.
Most well-established fleet resource companies supply high-quality ELD systems and fleet management services (FMS).
Those systems, which typically include back-office software that works and communicates directly with each vehicle in your fleet.
While this is not a requirement, it is a bonus to the new ELD mandate rule. Most of the services are automatic nowadays.
Furthermore, those automated services will save valuable money and time with each delivery.
The first thing to consider is the needs of your drivers and the needs of your business. Also don’t forget to check the ELD exemptions to have everything covered.
Large, highly structured and organized fleets may need electronic logging devices for sale that provide not only GPS but also require a solution that support FMS, GPS tracking, customer support and other supplementary services.
For a small fleet with few independent contractors and administrators, you could look for smaller systems.
Those would require less investment and maintenance. You’ll be on a safe side of the law as long as the ELD system comply with the ELD requirements.
However, many carriers like taking advantage of the extra benefits that ELDs offer. One of those benefits is GPS Fleet Tracking.
You can now request a free consultation to help you chose the best eld for your needs by filling the questionnaire below: