Beginning in 2018 truckers will be legally required to maintain Electronic Logging Devices within their vehicles which will replace manual logs. 

What is an ELD and how will this mandate affect your supply chain? 

The electronic logging device (ELD) rule – congressionally mandated as a part of MAP-21 – is intended to help create a safer work environment for drivers. It makes it easier and faster to accurately track, manage, and share records of duty status (RODS) data. It records drivers hours and miles and replaces the paper logbook some drivers currently use to record their compliance with Hours of Service (HOS) requirements. There is a government mandate that requires all trucks to be equipped with these devices. Fleets had until December 2017 to implement certified ELDs to record HOS. If requested by law enforcement, drivers must also be able to immediately present the required AOBRD display information for the previous seven days, plus the current day.

The FMCSA believes the new ELD mandate will eliminate 1,844 truck-related accidents per year, saving 26 lives and preventing 562 injuries. The rule also stands to force those drivers and carriers that make a living breaking the rules off the road.

How does this effect you? 

ELD mandate impact the freight costs. The FMCSA estimates that the average annual cost of an ELD will be $495 per truck, with a total range of $165 to $832 per truck on an annualized basis. The cost of the devices is being passed on to the consumer and many owner operators who are not equipped with these devices cannot be utilized. 

The biggest concern surrounding ELDs is that they may force a decrease in driving hours and thus hurt productivity. The ELD will not give them the authority to decide when they can take breaks or not drive through inclement weather. These concerns may be valid, especially given that there is already a shortage of qualified commercial drivers in many areas. If the existing drivers are held to extremely strict regulations, the industry as a whole could suffer. 

As of last week, van ratio hits an all-time high. There was urgency to move freight before the end of the year, but the combination of frigid weather and tight capacity due to both the holiday and the recently implemented ELD mandate meant that it cost more to move those loads last week. Load-to-truck ratios surged, setting a new all-time record-high of 12.2 loads per truck for vans. Rates reached historic highs (see graph below):

Frequently Asked Questions- ELD Rule: