Electronic Logging Devices Are Here
Hopefully by now everyone has had their Electronic Logging Devices (ELDs) implemented into their vehicles for the December 18, 2017 deadline. Even though the official out-of-service order associated with non-compliance begins April 1, 2018, let’s look at how we got here and what to expect moving forward.
So, how did we get here?
On December 10, 2015, The Federal Motor Carrier Safety Administration announced that effective December 18, 2017 all vehicles must operate on ELDs to record Hours of Service (HOS) as opposed to manually recording hours by hand with Log Books.
What are the benefits?
The announcement’s executive summary explains the rule will “improve commercial motor vehicle (CMV) safety and reduce the overall paperwork burden for both motor carriers and drivers, which will in turn, improve compliance with the applicable HOS rules.”
Here are the top 5 benefits noted from using ELDs:
- Less vehicle downtime: According to studies by Aberdeen Group, fleet management system users experience a 15% reduction in vehicle downtime while having an increased utilization of 13%.
- Reduces driver paperwork: Drivers hate paperwork already, and drivers who use RODS, fill out on average 240 per year. It’s estimated the average driver spends 4.5 minutes per ROD or 19 hours each year. By using ELDs, drivers can simply review the graph and remarks for HOS and “click” approve.
- Fewer total crashes: According to the Center for Truck and Bus Safety of Virginia Tech Transportation Institute, drivers using E-logs have an 11.7% reduction in total crash rates and 5.1% reduction in preventable crash rates.
- More drive time per day: Drivers who complete RODS must round up to the 15-minute interval. Conversely, E-logs support rounding up to the nearest minute. On average, companies experience an increase of 15-minutes of drive time per driver per day.
- More streamlined compliance: Drivers who comply with the ELD mandate find it easier to comply with other Driver Vehicle Inspection Reports and the International Fuel Tax Agreement (IFTA) because the ELD’s GPS tracking features include hours of service, hours in each state and miles driven in each state.
What issues may arise?
There’s a grace period for the out-of-service order associated with non-compliance (i.e. April 1). However, this date is just around the corner and the roll has not gone smoothly, causing more work for each transportation company.
To ensure clients can focus on the most important items for their business, our team at Assurance has assisted in the rollout of ELDs including:
- Driver Training
- Route Planning
- Vendor Screening
- Exclusive Partnerships and Discounts
Whether ELDs will help the industry or cause more issues is up for debate and will always be an opinion. However, the fact of the matter is it’s here and hasn’t been an easy transition for transportation companies. We feel that brokers should do more than just provide coverage, so our ‘A’ Team will always be here to assist in all areas regarding safety and risk management.
Insurance is often one of the highest expenses for a trucking company. Take 15 minutes to connect with Jaime to see where he can provide value to your organization!
- After the call, you‘ll learn:
- Why your insurance rates seem to go up year after year
- How underwriters decide how much you pay in premiums
- What an insurance broker should be doing to help your company
- How an industry leading client portal can save you time and money
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