The ELD Mandate and Its Impact on Expediters
In December, the U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) announced the adoption of a Final Rule requiring commercial truck drivers to use to use electronic logging devices (ELD), which automatically record driving time and monitor engine hours, vehicle movement, miles driven, and location.
The ELD mandate requires drivers and carriers who currently use paper log books to maintain hours-of-service records to adopt ELDs by December 18, 2017. For drivers and carriers using Automatic On Board Recording Devices (AOBRDs), the transition must be completed by December 16, 2019. (For more details see FMCSA's Implementation Timeline.)
So, how will the mandate impact you as an expediter?
Leveling the Playing Field
Long-time expedite owner-operator, Linda Caffee, who has used an ELD for several years, sees the ELD mandate as a competitive equalizer. "A paper log is often considered a work of fiction. The ELD requires that we write facts. Right now, it's not a level playing field competing against those who can make up their hours on paper logs and get away with running too many," she says.
John Elliott, chief executive officer for expedited trucking carrier Load One LLC, agrees. "We went to fully ELD about a year and a half ago. I think it's a good thing, and it'll be an even better thing when everyone does it because it'll level the playing field," he says.
Elliott says that there was initial resistance by some drivers when the carrier began its ELD deployment. "But many of them were actually glad after it was done. They were happier than they thought they would be."
Why?
"It has taken a lot of the paperwork burden off of them and simplified their work," says Elliott. "Keeping up with paper logs is not the easiest, most uncomplicated thing in the world, and you can mess it up even when you're trying to do everything right."
ELDs have also taken pressure off drivers when it comes to stating their availability with hours of service. "The ELD has helped operations get full visibility into the logbook," says Elliott. "Instead of our staff having to assume what a truck had for hours, they get accurate information in real time. And that has taken a lot of the pressure off of the drivers and put it back on dispatch and operations to plan appropriately."
Elliot continues: "I think when everybody has to implement ELDs, this will level the playing field because, unfortunately, you still have a lot of companies out there who will fudge compliance to try to gain a competitive advantage."
Resistance to ELDs
But not everyone in the trucking industry supports the mandate. In March, the Owner Operator Independent Drivers Association (OOIDA) filed an appeal to the U.S. Court of Appeals for the 7th Circuit, contending that "requiring electronic monitoring devices on commercial vehicles does not advance safety, is arbitrary and capricious and violates 4th amendment rights against unreasonable searches and seizures."
"The agency provided no proof of their claims that this mandate would improve highway safety. They didn't even attempt to compare the safety records of trucking companies that use ELDs and those that do not," says Jim Johnston, OOIDA president and CEO. "There is simply no proof that the costs, burdens and privacy infringements associated with this mandate are justified."
A major sticking point for OOIDA is the privacy issue. Says Johnson: "For most truckers, a truck is not just a vehicle but is also an office and a home away from home. This mandate means monitoring the movement and activities of real people for law enforcement purposes and is an outrageous intrusion of the privacy of professional truckers."
The Bottom Line
Whether you're for or against the ELD mandate right now, it's in effect and full compliance is required before the end of the decade. So, how do you expect ELDs will impact your own expedite business? What do you envision to be the potential opportunities -- and challenges -- that ELDs will bring to your career? Begin today to think through the possibilities so that you can effectively navigate the issues and put yourself in the best position to succeed.