The ELD Mandate's Carrot and Stick

This Opinion piece appears in the April 18 print edition of Transport Topics. Click here to subscribe today.

By Skip Kinford

President & CEO

AmericasMiX Telematics

The Federal Motor Carrier Safety Administration finally released the long-awaited electronic logging device mandate’s final rule in December. The rule states that motor carriers without a current solution in place now have until December 2017 to implement ELDs for any vehicle or combination of vehicles with an actual weight and/or Gross Vehicle Weight Rating of 10,001 pounds or more. The rule is meant to improve compliance with hours-of-service safety rules.

Kinford

In announcing the final rule, FMCSA stated that it’s expected to drive “an annual net benefit of more than $1 billion — largely by reducing the amount of required industry paperwork.” The commission also predicts the rule will save 26 lives annually and prevent 562 injuries resulting from crashes involving large commercial motor vehicles.

Many fleets already are ahead of the game, having installed automatic onboard recording devices to help monitor hours of service (HOS), monitor driver behavior, improve safety, eliminate paper logs, improve driver and vehicle efficiencies and reduce fuel usage. The ELD rule will grandfather in AOBRDs, allowing for their continued use until December 2019.

Fleet managers need to do their due diligence, however, before implementing an ELD solution. Here are a few things that aren’t evident in the FMCSA documents but are crucial:

• ELD vendors currently self-report their compliance with FMCSA ELD regulations, and interpretation may vary by vendor. FMCSA is not vetting vendor solutions but is expected to provide a certification test for vendors in the coming months that will ensure vendors meet the technical requirements established for ELD devices. That should help alleviate some of the confusion over which vendors are truly compliant.

• Fleets should test prospective ELD solutions using their own data to make sure the platform will work for them. I’ve been involved in evaluations where two vendors interpret rules differently, and misinterpretation could put a fleet at risk of noncompliance. So test prospective systems with your own data to make sure the vendor’s rule interpretations match yours. In addition, when you test devices, have both drivers and managers give them a spin because both will be using the system.

• Ask vendors what process they will go through to keep their systems up to date with current FMCSA regulations. Some ELD vendors require physical visits to each and every vehicle to make updates. Others can update their systems in minutes over the air. Obviously, the latter method is easier, less expensive and least likely to put your fleet out of compliance when updates are required. Fleet managers also should check to make sure installations and updates are included in their maintenance contracts — sometimes they aren’t, and this can add significant cost.

• If you go with an entry-level ELD-only tool, make sure you know what you’re getting yourself into. Several entry-level ELD-only tools are now being sold. They are scoped very tightly to provide minimum compliance, with no opportunity to upgrade later to take advantage of features such as tracking driver behavior, fleet optimization, fuel optimization, in-cab driver coaching or navigation. If you decide you want to add feature sets later, a solution upgrade would be required.

• Don’t wait too long to take action. If your fleet is part of the estimated 75% that don’t currently have an EOBR or AOBRD, don’t wait too long. Remember that as more companies adopt an ELD solution, they are increasing their ability to effectively monitor driver HOS compliance, thus drastically reducing their FMCSA-CSA scores — a key component in carrier selection by customers. Carriers that fail to install ELDs in a timely manner will soon be at a disadvantage.

The FMCSA final rule is very clear — with limited exceptions, fleets need to start using ELDs or they will be fined. That’s the stick. But there’s also a big carrot: The business case for implementing ELDs is well-proven and driven by safety and economics. Fleets that implement ELDs have fewer accidents, eliminate most paperwork, reduce their fuel costs and run much more efficiently. While some fleets may not like the FMCSA’s stick, they ultimately will be well-served by the carrot.

MiX Telematics is a global provider of fleet and mobile asset- management solutions. Kinford is a veteran of more than 20 years in the technology and telematics industries.