In December 2015, the FMCSA announced the ELD mandate. How will this ELD mandate affect your trucking company?
Per this new rule, all commercial motor vehicles (CMVs) must be equipped with Automatic On-Board Recorder Devices (AOBRDs) or electronic logging devices (ELDs) by the end of December 2017.
Furthermore, CMVs must have ELDs by the end of December 16, 2019. Beyond that, AOBRDs will be no longer accepted, and CMVs must be equipped with only certified ELDs.
Here is a graphical representation of the ELD compliance timeline.
This final ruling of the ELD mandate has brought up a lot of questions for drivers, fleet managers, and trucking companies. Many aren’t sure about the advantages and disadvantages of this new ELD mandate. There are questions like:
- Is the final ELD mandate going to make trucking companies more productive?
- Will the ELD rule increase safety?
- How will this ELD mandate affect trucking companies?
- Does the ELD mandate increase operational costs?
In this blog post, we discuss how the ELD mandate affects trucking companies, fleet managers, and CMV drivers.
How the ELD mandate affects trucking companies
Most trucking companies have welcomed the idea of an ELD mandate. However, there are some who aren’t in favor of the mandate and think it’s going to increase operational costs.
The benefits of an electronic logging device, however, far outweigh its cost.
Let’s see how the ELD mandate affects trucking companies in various ways.
- Cost of compliance
The new ELD mandate does come with an additional cost of buying ELDs. However, you don’t have to pay a lot of money to be compliant.
How much money does it cost to be ELD compliant?
It mainly depends on the ELD provider you choose.
Note: Don’t forget to check the duration of the contract. Most ELD providers require a three- or five-year contract. At the moment, only Motive offers a one-year contract, so you don’t have to pay a lot of upfront money.
We try our best to offer the easiest way to ELD mandate compliance.
- Improved CSA scores
Another positive impact of the ELD mandate is that it can help you improve your CSA score. Many trucking companies have seen dramatic improvements in their CSA scores after implementing electronic logging devices.
As ELDs automatically record information and minimize violations, CSA scores are bound to improve significantly. Learn more about CSA scores and how to improve them.
- Increased safety and fewer violations
Safety has been one of the biggest factors in the implementation of the ELD mandate. It is believed to provide a safer working environment for drivers, fleet managers, as well as the general public.
According to FMCSA, the ELD mandate is estimated to save 26 lives and prevent 562 injuries every year.
Once the ELD mandate is implemented, it will lead to a much safer working environment for trucking companies. It will lead to fewer HOS violations, quicker roadside inspections, fewer accidents, and a lower number of lawsuits.
- Less paperwork
As the ELD mandate requires almost all data to be recorded automatically with electronic logging devices, there will be significantly less paperwork to deal with.
Drivers don’t have to use paper logs anymore. Instead, they can switch to electronic logs, which will be seamlessly connected with ELDs.
- Simple IFTA calculation
Manually calculating IFTA reports is one of the most tedious and error-prone tasks for fleets. It requires carefully reviewing trip sheets from the previous quarter to calculate how far vehicles traveled in each jurisdiction, which is highly inefficient and prone to mistakes.
An ELD with the right set of features can automatically calculate IFTA reports for you.
- Lower insurance premiums
Contrary to common belief, electronic logging devices can lower insurance premiums for trucking companies.
We believe that trucking companies that implement ELDs can significantly reduce insurance costs. More and more insurance companies are now considering ELD data when determining rates.
The ELD mandate will make your fleet safe, which results in lower insurance premiums.
- Efficiency and productivity
The FMCSA ELD mandate is believed to make trucking companies more efficient and productive. This is because electronic logging devices can:
- Reduce paperwork, save a lot of time, and prevent many mistakes.
- Keep dispatchers up-to-date on a driver’s status, which leads to better planning and fewer HOS violations.
- Allow fleet managers to identify bad driving behaviors that lead to extra expenses. According to an estimate, for a truck that consumes $70,000 of fuel per year, approximately $5,600 is spent on idling every year. ELDs can save this money for your trucking company by identifying such bad driving behaviors.
There’s still time left for the ELD mandate to kick in. However, trucking companies are already seeing the benefits of using electronic logging devices, and they are implementing ELDs before the ELD mandate makes them mandatory.
Some drivers may find it difficult to transition. Educate them and tell them about the various benefits they get to enjoy with ELDs and electronic logs. Once they see how much easier and safer it is, they rarely go back to paper logs.
Per the ELD mandate, electronic logging devices will become mandatory in December 2017. It is wise not to wait until then.
Make your transition now, so you can get all the benefits ELDs bring and gradually familiarize your staff with one before they become mandatory.
Motive offers one of the best and most cost-effective ELD solutions for trucking companies. Request a free ELD demo today.