SlideShare a Scribd company logo
1 of 4
Download to read offline
EXECUTIVE BRIEFING
JBH-0528 REV 022516
JBH-0528 ELD Take Aways022516.indd 1 2/25/16 2:26 PM
The U.S. Department of Transportation’s
Federal Motor Carrier Safety Administration
(FMCSA) announced on Dec. 10, 2015 that
motor carriers must begin using electronic
logging devices (ELDs) on all trucks and
commercial buses manufactured after 2000.
Drivers and carriers have until Dec. 18,
2017 to comply. Drivers who are currently
using automatic onboard recording devices
(AOBRDs) or install them before the December
2017 deadline, will be grandfathered in. They
have an additional two years to update to
ELD-compliant technology.
The ELD mandate is designed to increase commercial motor
vehicle safety, reduce industry paperwork and improve Hours
of Service (HOS) compliance. The FMCSA considers ELD
records “the most robust form of documentation for on-duty
driving periods.” Some drivers currently use paper logbooks to
report HOS; however, the ELDs will replace logbooks. This will
help the FMCSA maintain accurate records of HOS compliance
in the industry. Additionally, roadside law enforcement will be
able to use the data to review driver records more efficiently.
Not only do drivers need to have this technology installed on
their trucks by the applicable deadlines, they must also know
how to use it.
Drivers who operate under the short haul exemption do not
have to comply with this mandate. Per the FMCSA, a short
haul driver “operates within a 100 air-mile radius of the normal
work reporting location.” Drivers under this classification are
exempt unless their duties require them to complete a log for
more than eight days in a 30-day period. Additional exemptions
are made for driveaway-towaway drivers as well as drivers of
trucks that were manufactured before 2000.
Drivers who currently use paper
logs and must convert to an ELD.
SHORT TERM:Rates may increase if capacity
decreases when HOS violators
become compliant.
Drivers and carriers
have until Dec. 18,
2017 to comply.
J.B. HUNT
TRUCKS ARE
ELD EQUIPPED
Fewer fatigued drivers could
result in the following annually:
CAPACITY
The approximately three million drivers, or 67% of the
impacted driver population1
who are currently using paper
logs, may experience decreased capacity when they switch
to electronic logs. Drivers who have not been compliant
with the HOS regulations will see the biggest impact on
their capacity. It is estimated that drivers who have been
operating beyond the legal hours will see a double-digit
reduction in productivity.2
Although this new regulation will affect millions of drivers,
the long-term benefits of the ELD mandate outweigh the
preliminary cost. Many larger companies have already
incurred the cost of ELDs which is around $500 per truck,
per year. Smaller carriers and owner-operators will incur
a similar expense as they implement ELDs. The FMCSA
says ELDs will save the industry more than $3 billion3
annually through reduced paperwork and fewer highway
accidents, which includes a savings of $2.4 billion and
$572 million, respectively. Even after adjusting for the costs
of equipment, compliance and training, the net benefit of
ELDs is still more than $1 billion.*
In addition to the monetary savings the industry will receive,
the ruling will also allow fleet managers to benefit from more
visibility and control of their fleets. The J.B. Hunt white
paper, “660 Minutes: How Improving Driver Efficiency
Increases Capacity,” contains additional information for
customers about the HOS regulation and how drivers and
carriers can maximize efficiency within that regulation.
BENEFITS
The ELD mandate will make it more difficult for drivers
to misrepresent their driving time, thus reducing HOS
violations. By enforcing HOS regulations, this new mandate
should reduce driver fatigue and prevent approximately 26
fatalities and more than 500 injuries per year.
ELDs will increase HOS compliance by making it easier
for drivers to keep accurate time logs. It will also help
managers and support staff better improve enforcement of
HOS and cut down on paperwork. Because ELDs record
location, time and available hours, management can better
help drivers improve productivity. The mandate will also
reduce liability to shippers due to fewer accidents by non-
compliant drivers.
SHIPPERS
Although most large carriers have already been using ELDs,
many smaller carriers will have to overhaul how their drivers
maintain their record of duty. Rates for smaller carriers
may increase if equipment utilization decreases when HOS
violators become compliant.
The Owner-Operator Independent Drivers Association
(OOIDA) opposes the mandate and has filed a suit against
the FMCSA. One concern from smaller carriers is that this
mandate will put too much pressure on drivers. According
to the OOIDA, motor carriers have already used ELDs to
harass drivers. This includes forcing them to log non-driving
times when they are still on duty as “off-duty” and reducing
driver sleeping periods in the sleeper berth by using the
ELD to wake them.4
However, part of this new rule mandates that motor carriers
or shippers cannot use data from the ELDs to coerce or
harass drivers into violating HOS rules. If a driver feels a
shipper or carrier is pressuring him or her to violate the HOS
regulations, he or she can file a complaint with the FMCSA.
The ELD mandate is a step in the right direction to keep our
roads safe. More information about this mandate can be
found online at https://www.fmcsa.dot.gov.
1
 http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/owner-
operators-challenge-electronic-logging-mandate_20151210.html
2
 http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/electronic-
logbook-mandate-could-drive-supply-chain-gains_20150817.html
3
Federal Motor Carrier Safety Administration (FMCSA), “The Rule.” Volume 80, #241
4
http://www.ooida.com/OOIDA%20Foundation/Issues/ELDS.asp
* The figures are annualized using 7% discount rates, per FMCSA.
Additional information in this report was obtained from: https://www.fmcsa.dot.gov/hours-service/elds/
electronic-logging-devices
JBH-0528 ELD Take Aways022516.indd 2 2/25/16 2:26 PM
The U.S. Department of Transportation’s
Federal Motor Carrier Safety Administration
(FMCSA) announced on Dec. 10, 2015 that
motor carriers must begin using electronic
logging devices (ELDs) on all trucks and
commercial buses manufactured after 2000.
Drivers and carriers have until Dec. 18,
2017 to comply. Drivers who are currently
using automatic onboard recording devices
(AOBRDs) or install them before the December
2017 deadline, will be grandfathered in. They
have an additional two years to update to
ELD-compliant technology.
The ELD mandate is designed to increase commercial motor
vehicle safety, reduce industry paperwork and improve Hours
of Service (HOS) compliance. The FMCSA considers ELD
records “the most robust form of documentation for on-duty
driving periods.” Some drivers currently use paper logbooks to
report HOS; however, the ELDs will replace logbooks. This will
help the FMCSA maintain accurate records of HOS compliance
in the industry. Additionally, roadside law enforcement will be
able to use the data to review driver records more efficiently.
Not only do drivers need to have this technology installed on
their trucks by the applicable deadlines, they must also know
how to use it.
Drivers who operate under the short haul exemption do not
have to comply with this mandate. Per the FMCSA, a short
haul driver “operates within a 100 air-mile radius of the normal
work reporting location.” Drivers under this classification are
exempt unless their duties require them to complete a log for
more than eight days in a 30-day period. Additional exemptions
are made for driveaway-towaway drivers as well as drivers of
trucks that were manufactured before 2000.
Drivers who currently use paper
logs and must convert to an ELD.
SHORT TERM:Rates may increase if capacity
decreases when HOS violators
become compliant.
Drivers and carriers
have until Dec. 18,
2017 to comply.
J.B. HUNT
TRUCKS ARE
ELD EQUIPPED
Fewer fatigued drivers could
result in the following annually:
CAPACITY
The approximately three million drivers, or 67% of the
impacted driver population1
who are currently using paper
logs, may experience decreased capacity when they switch
to electronic logs. Drivers who have not been compliant
with the HOS regulations will see the biggest impact on
their capacity. It is estimated that drivers who have been
operating beyond the legal hours will see a double-digit
reduction in productivity.2
Although this new regulation will affect millions of drivers,
the long-term benefits of the ELD mandate outweigh the
preliminary cost. Many larger companies have already
incurred the cost of ELDs, which is around $500 per truck,
per year. Smaller carriers and owner-operators will incur
a similar expense as they implement ELDs. The FMCSA
says ELDs will save the industry more than $3 billion3
annually through reduced paperwork and fewer highway
accidents, which includes a savings of $2.4 billion and
$572 million, respectively. Even after adjusting for the costs
of equipment, compliance and training, the net benefit of
ELDs is still more than $1 billion.*
In addition to the monetary savings the industry will receive,
the ruling will also allow fleet managers to benefit from more
visibility and control of their fleets. The J.B. Hunt white
paper, “660 Minutes: How Improving Driver Efficiency
Increases Capacity,” contains additional information for
customers about the HOS regulation and how drivers and
carriers can maximize efficiency within that regulation.
BENEFITS
The ELD mandate will make it more difficult for drivers
to misrepresent their driving time, thus reducing HOS
violations. By enforcing HOS regulations, this new mandate
should reduce driver fatigue and prevent approximately 26
fatalities and more than 500 injuries per year.
ELDs will increase HOS compliance by making it easier
for drivers to keep accurate time logs. It will also help
managers and support staff better improve enforcement of
HOS and cut down on paperwork. Because ELDs record
location, time and available hours, management can better
help drivers improve productivity. The mandate will also
reduce liability to shippers due to fewer accidents by non-
compliant drivers.
SHIPPERS
Although most large carriers have already been using ELDs,
many smaller carriers will have to overhaul how their drivers
maintain their record of duty. Rates for smaller carriers
may increase if equipment utilization decreases when HOS
violators become compliant.
The Owner-Operator Independent Drivers Association
(OOIDA) opposes the mandate and has filed a suit against
the FMCSA. One concern from smaller carriers is that this
mandate will put too much pressure on drivers. According
to the OOIDA, motor carriers have already used ELDs to
harass drivers. This includes forcing them to log non-driving
times when they are still on duty as “off-duty” and reducing
driver sleeping periods in the sleeper berth by using the
ELD to wake them.4
However, part of this new rule mandates that motor carriers
or shippers cannot use data from the ELDs to coerce or
harass drivers into violating HOS rules. If a driver feels a
shipper or carrier is pressuring him or her to violate the HOS
regulations, he or she can file a complaint with the FMCSA.
The ELD mandate is a step in the right direction to keep our
roads safe. More information about this mandate can be
found online at https://www.fmcsa.dot.gov.
1
http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/owner-
operators-challenge-electronic-logging-mandate_20151210.html
2
http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/electronic-
logbook-mandate-could-drive-supply-chain-gains_20150817.html
3
Federal Motor Carrier Safety Administration (FMCSA), “The Rule.” Volume 80, #241
4
http://www.ooida.com/OOIDA%20Foundation/Issues/ELDS.asp
* The figures are annualized using 7% discount rates, per FMCSA.
Additional information in this report was obtained from: https://www.fmcsa.dot.gov/hours-service/elds/
electronic-logging-devices
JBH-0528 ELD Take Aways022516.indd 2 2/25/16 2:26 PM
EXECUTIVE BRIEFING
JBH-0528 REV 022516
JBH-0528 ELD Take Aways022516.indd 1 2/25/16 2:26 PM

More Related Content

What's hot

Understanding Certain Trucking Regulations
Understanding Certain Trucking RegulationsUnderstanding Certain Trucking Regulations
Understanding Certain Trucking RegulationsDanko Marketing
 
[Zulfadli] automated enforcement system
[Zulfadli] automated enforcement system[Zulfadli] automated enforcement system
[Zulfadli] automated enforcement systemZulfadli Yusmar
 
Don't Derail Your Compliance: Get Up To Speed On ELD
Don't Derail Your Compliance: Get Up To Speed On ELDDon't Derail Your Compliance: Get Up To Speed On ELD
Don't Derail Your Compliance: Get Up To Speed On ELDBSM Technologies
 
US Trucking Regulatory Update - Using Technology
US Trucking Regulatory Update - Using TechnologyUS Trucking Regulatory Update - Using Technology
US Trucking Regulatory Update - Using TechnologyJoel Beal
 
Connected Car + Health + Smart Home Integration Insights from Patents
Connected Car + Health + Smart Home Integration Insights from PatentsConnected Car + Health + Smart Home Integration Insights from Patents
Connected Car + Health + Smart Home Integration Insights from PatentsAlex G. Lee, Ph.D. Esq. CLP
 
Expressway Life Saver Implementation Report
Expressway Life Saver Implementation ReportExpressway Life Saver Implementation Report
Expressway Life Saver Implementation ReportShakthi Weerasinghe
 
How Overseas Driving Licenses Work in Australia
How Overseas Driving Licenses Work in AustraliaHow Overseas Driving Licenses Work in Australia
How Overseas Driving Licenses Work in Australiadonaldwright54
 
Csa2010thedriverimpact
Csa2010thedriverimpactCsa2010thedriverimpact
Csa2010thedriverimpactScott Bird
 
Csa 2010 The Driver Impact
Csa 2010 The Driver ImpactCsa 2010 The Driver Impact
Csa 2010 The Driver ImpactDoretta
 
CSA 2010: The Driver Impact
CSA 2010: The Driver ImpactCSA 2010: The Driver Impact
CSA 2010: The Driver ImpactMulti Service
 
Fleet Monitoring Is No Fleeting Fancy, Utility Products Magazine Article By G...
Fleet Monitoring Is No Fleeting Fancy, Utility Products Magazine Article By G...Fleet Monitoring Is No Fleeting Fancy, Utility Products Magazine Article By G...
Fleet Monitoring Is No Fleeting Fancy, Utility Products Magazine Article By G...glebron
 
Traffic Violation System
Traffic Violation SystemTraffic Violation System
Traffic Violation Systemruchitjain
 
An Introduction to Motor Vehicles Act, 1988
An Introduction to Motor Vehicles Act, 1988An Introduction to Motor Vehicles Act, 1988
An Introduction to Motor Vehicles Act, 1988Nilendra Kumar
 

What's hot (15)

Understanding Certain Trucking Regulations
Understanding Certain Trucking RegulationsUnderstanding Certain Trucking Regulations
Understanding Certain Trucking Regulations
 
Writing Sample
Writing SampleWriting Sample
Writing Sample
 
[Zulfadli] automated enforcement system
[Zulfadli] automated enforcement system[Zulfadli] automated enforcement system
[Zulfadli] automated enforcement system
 
Don't Derail Your Compliance: Get Up To Speed On ELD
Don't Derail Your Compliance: Get Up To Speed On ELDDon't Derail Your Compliance: Get Up To Speed On ELD
Don't Derail Your Compliance: Get Up To Speed On ELD
 
US Trucking Regulatory Update - Using Technology
US Trucking Regulatory Update - Using TechnologyUS Trucking Regulatory Update - Using Technology
US Trucking Regulatory Update - Using Technology
 
Connected Car + Health + Smart Home Integration Insights from Patents
Connected Car + Health + Smart Home Integration Insights from PatentsConnected Car + Health + Smart Home Integration Insights from Patents
Connected Car + Health + Smart Home Integration Insights from Patents
 
Expressway Life Saver Implementation Report
Expressway Life Saver Implementation ReportExpressway Life Saver Implementation Report
Expressway Life Saver Implementation Report
 
How Overseas Driving Licenses Work in Australia
How Overseas Driving Licenses Work in AustraliaHow Overseas Driving Licenses Work in Australia
How Overseas Driving Licenses Work in Australia
 
Csa2010thedriverimpact
Csa2010thedriverimpactCsa2010thedriverimpact
Csa2010thedriverimpact
 
Csa 2010 The Driver Impact
Csa 2010 The Driver ImpactCsa 2010 The Driver Impact
Csa 2010 The Driver Impact
 
CSA 2010: The Driver Impact
CSA 2010: The Driver ImpactCSA 2010: The Driver Impact
CSA 2010: The Driver Impact
 
CSA 2010: The Driver Impact
CSA 2010: The Driver ImpactCSA 2010: The Driver Impact
CSA 2010: The Driver Impact
 
Fleet Monitoring Is No Fleeting Fancy, Utility Products Magazine Article By G...
Fleet Monitoring Is No Fleeting Fancy, Utility Products Magazine Article By G...Fleet Monitoring Is No Fleeting Fancy, Utility Products Magazine Article By G...
Fleet Monitoring Is No Fleeting Fancy, Utility Products Magazine Article By G...
 
Traffic Violation System
Traffic Violation SystemTraffic Violation System
Traffic Violation System
 
An Introduction to Motor Vehicles Act, 1988
An Introduction to Motor Vehicles Act, 1988An Introduction to Motor Vehicles Act, 1988
An Introduction to Motor Vehicles Act, 1988
 

Viewers also liked

HOS-ELD_Overview_of_Features_and_Benefits_-_MDS_2016
HOS-ELD_Overview_of_Features_and_Benefits_-_MDS_2016HOS-ELD_Overview_of_Features_and_Benefits_-_MDS_2016
HOS-ELD_Overview_of_Features_and_Benefits_-_MDS_2016David Schnerch
 
ELD Mandate Overview - Class 8 Trucks
ELD Mandate Overview - Class 8 TrucksELD Mandate Overview - Class 8 Trucks
ELD Mandate Overview - Class 8 TrucksFleet Advantage
 
Getting the Most Out of BigRoad
Getting the Most Out of BigRoadGetting the Most Out of BigRoad
Getting the Most Out of BigRoadBigRoad
 
Stay Ahead Of Your Compliance: Get Up To Speed On ELD
Stay Ahead Of Your Compliance: Get Up To Speed On ELDStay Ahead Of Your Compliance: Get Up To Speed On ELD
Stay Ahead Of Your Compliance: Get Up To Speed On ELDBSM Technologies
 
Webinar: Getting Ready for ELD
Webinar: Getting Ready for ELDWebinar: Getting Ready for ELD
Webinar: Getting Ready for ELDBigRoad
 
Aamva user perspectives on eld compliance - may 2016
Aamva   user perspectives on eld compliance - may 2016Aamva   user perspectives on eld compliance - may 2016
Aamva user perspectives on eld compliance - may 2016EROAD
 
Eld final rule overview
Eld final rule overviewEld final rule overview
Eld final rule overviewZonar
 
LUMA Digital Brief 011 - Market Report Q3 2016
LUMA Digital Brief 011 - Market Report Q3 2016LUMA Digital Brief 011 - Market Report Q3 2016
LUMA Digital Brief 011 - Market Report Q3 2016LUMA Partners
 

Viewers also liked (14)

HOS-ELD_Overview_of_Features_and_Benefits_-_MDS_2016
HOS-ELD_Overview_of_Features_and_Benefits_-_MDS_2016HOS-ELD_Overview_of_Features_and_Benefits_-_MDS_2016
HOS-ELD_Overview_of_Features_and_Benefits_-_MDS_2016
 
FMCSA DataQ Challenges-FTA-Blitch
FMCSA DataQ Challenges-FTA-BlitchFMCSA DataQ Challenges-FTA-Blitch
FMCSA DataQ Challenges-FTA-Blitch
 
ELDs and Hours of Service-FTA-PeopleNet
ELDs and Hours of Service-FTA-PeopleNetELDs and Hours of Service-FTA-PeopleNet
ELDs and Hours of Service-FTA-PeopleNet
 
ELD Mandate Overview - Class 8 Trucks
ELD Mandate Overview - Class 8 TrucksELD Mandate Overview - Class 8 Trucks
ELD Mandate Overview - Class 8 Trucks
 
Getting the Most Out of BigRoad
Getting the Most Out of BigRoadGetting the Most Out of BigRoad
Getting the Most Out of BigRoad
 
2016 STS - Parto Mazdeyasni: Partnering with Ports
2016 STS - Parto Mazdeyasni: Partnering with Ports 2016 STS - Parto Mazdeyasni: Partnering with Ports
2016 STS - Parto Mazdeyasni: Partnering with Ports
 
2016 STS - Chris Nelson: The ABC’s of the Looming ELD Mandate
2016 STS - Chris Nelson: The ABC’s of the Looming ELD Mandate2016 STS - Chris Nelson: The ABC’s of the Looming ELD Mandate
2016 STS - Chris Nelson: The ABC’s of the Looming ELD Mandate
 
Stay Ahead Of Your Compliance: Get Up To Speed On ELD
Stay Ahead Of Your Compliance: Get Up To Speed On ELDStay Ahead Of Your Compliance: Get Up To Speed On ELD
Stay Ahead Of Your Compliance: Get Up To Speed On ELD
 
Webinar: Getting Ready for ELD
Webinar: Getting Ready for ELDWebinar: Getting Ready for ELD
Webinar: Getting Ready for ELD
 
2016 CRW - The ELD Mandate: The Time has Come
2016 CRW - The ELD Mandate: The Time has Come2016 CRW - The ELD Mandate: The Time has Come
2016 CRW - The ELD Mandate: The Time has Come
 
Aamva user perspectives on eld compliance - may 2016
Aamva   user perspectives on eld compliance - may 2016Aamva   user perspectives on eld compliance - may 2016
Aamva user perspectives on eld compliance - may 2016
 
Eld final rule overview
Eld final rule overviewEld final rule overview
Eld final rule overview
 
Fleetmatics Solutions
Fleetmatics SolutionsFleetmatics Solutions
Fleetmatics Solutions
 
LUMA Digital Brief 011 - Market Report Q3 2016
LUMA Digital Brief 011 - Market Report Q3 2016LUMA Digital Brief 011 - Market Report Q3 2016
LUMA Digital Brief 011 - Market Report Q3 2016
 

Similar to JBH-0528 ELD Take Aways022516v2 portrait

Everything that you need to know about an ELD Mandate.pptx
Everything that you need to know about an ELD Mandate.pptxEverything that you need to know about an ELD Mandate.pptx
Everything that you need to know about an ELD Mandate.pptxCargaison express
 
ACT_10_2015_TimeForCompliance
ACT_10_2015_TimeForComplianceACT_10_2015_TimeForCompliance
ACT_10_2015_TimeForComplianceJoseph Doerr
 
Legal/Regulatory Developments Are Changing the Economic Landscape of Trucking
Legal/Regulatory Developments Are Changing the Economic Landscape of TruckingLegal/Regulatory Developments Are Changing the Economic Landscape of Trucking
Legal/Regulatory Developments Are Changing the Economic Landscape of TruckingWalt Metz
 
Improving efficiencies in government fleets
Improving efficiencies in government fleetsImproving efficiencies in government fleets
Improving efficiencies in government fleetsPablo Ruiz
 
Fleet Management and the ELD Mandate
Fleet Management and the ELD MandateFleet Management and the ELD Mandate
Fleet Management and the ELD Mandatesalesbuddy
 
Understanding ELD Rules: Compliance for CMV Drivers and Fleet Operators
Understanding ELD Rules: Compliance for CMV Drivers and Fleet OperatorsUnderstanding ELD Rules: Compliance for CMV Drivers and Fleet Operators
Understanding ELD Rules: Compliance for CMV Drivers and Fleet OperatorsNational Freight Logistics
 
Fleet management and vehicle tracking solutions
Fleet management and vehicle tracking solutionsFleet management and vehicle tracking solutions
Fleet management and vehicle tracking solutionsTristan Wiggill
 
How to Put the Bite on Deadhead Trucking
How to Put the Bite on Deadhead TruckingHow to Put the Bite on Deadhead Trucking
How to Put the Bite on Deadhead TruckingTaylor Wilkinson
 
Taking the 'R' out of IRPTN's
Taking the 'R' out of IRPTN'sTaking the 'R' out of IRPTN's
Taking the 'R' out of IRPTN'sTristan Wiggill
 
5 simple things that will make your fleet smarter
5 simple things that will make your fleet smarter5 simple things that will make your fleet smarter
5 simple things that will make your fleet smarterSprint Business
 
[Infographic] ELD Mandate: Things You Must Know
[Infographic] ELD Mandate: Things You Must Know[Infographic] ELD Mandate: Things You Must Know
[Infographic] ELD Mandate: Things You Must KnowScalefusion
 
2023 Freight Regulations Demystified by NFL Freight
2023 Freight Regulations Demystified by NFL Freight2023 Freight Regulations Demystified by NFL Freight
2023 Freight Regulations Demystified by NFL FreightNational Freight Logistics
 
Navman wireless safetyfirst Ebook
Navman wireless safetyfirst EbookNavman wireless safetyfirst Ebook
Navman wireless safetyfirst EbookJason Gardner
 
JAA Fuel Flowage Fee Strategy & Methodology
JAA Fuel Flowage Fee Strategy & MethodologyJAA Fuel Flowage Fee Strategy & Methodology
JAA Fuel Flowage Fee Strategy & MethodologyMattBocchinoAAE
 

Similar to JBH-0528 ELD Take Aways022516v2 portrait (20)

Everything that you need to know about an ELD Mandate.pptx
Everything that you need to know about an ELD Mandate.pptxEverything that you need to know about an ELD Mandate.pptx
Everything that you need to know about an ELD Mandate.pptx
 
ACT_10_2015_TimeForCompliance
ACT_10_2015_TimeForComplianceACT_10_2015_TimeForCompliance
ACT_10_2015_TimeForCompliance
 
Legal/Regulatory Developments Are Changing the Economic Landscape of Trucking
Legal/Regulatory Developments Are Changing the Economic Landscape of TruckingLegal/Regulatory Developments Are Changing the Economic Landscape of Trucking
Legal/Regulatory Developments Are Changing the Economic Landscape of Trucking
 
Improving efficiencies in government fleets
Improving efficiencies in government fleetsImproving efficiencies in government fleets
Improving efficiencies in government fleets
 
Fleet Management and the ELD Mandate
Fleet Management and the ELD MandateFleet Management and the ELD Mandate
Fleet Management and the ELD Mandate
 
DSi's Handy Hours-of-Service & eLogs Guide
DSi's Handy Hours-of-Service & eLogs GuideDSi's Handy Hours-of-Service & eLogs Guide
DSi's Handy Hours-of-Service & eLogs Guide
 
Building Your ELD Strategy
Building Your ELD StrategyBuilding Your ELD Strategy
Building Your ELD Strategy
 
Build Your ELD Strategy
Build Your ELD StrategyBuild Your ELD Strategy
Build Your ELD Strategy
 
2019 STS: The Latest on HOS & More from FMCSA’s Larry Minor
2019 STS: The Latest on HOS & More from FMCSA’s Larry Minor2019 STS: The Latest on HOS & More from FMCSA’s Larry Minor
2019 STS: The Latest on HOS & More from FMCSA’s Larry Minor
 
Hos final-rule-12-27-11
Hos final-rule-12-27-11Hos final-rule-12-27-11
Hos final-rule-12-27-11
 
Understanding ELD Rules: Compliance for CMV Drivers and Fleet Operators
Understanding ELD Rules: Compliance for CMV Drivers and Fleet OperatorsUnderstanding ELD Rules: Compliance for CMV Drivers and Fleet Operators
Understanding ELD Rules: Compliance for CMV Drivers and Fleet Operators
 
Fleet management and vehicle tracking solutions
Fleet management and vehicle tracking solutionsFleet management and vehicle tracking solutions
Fleet management and vehicle tracking solutions
 
How to Put the Bite on Deadhead Trucking
How to Put the Bite on Deadhead TruckingHow to Put the Bite on Deadhead Trucking
How to Put the Bite on Deadhead Trucking
 
Fleet benefits
Fleet benefitsFleet benefits
Fleet benefits
 
Taking the 'R' out of IRPTN's
Taking the 'R' out of IRPTN'sTaking the 'R' out of IRPTN's
Taking the 'R' out of IRPTN's
 
5 simple things that will make your fleet smarter
5 simple things that will make your fleet smarter5 simple things that will make your fleet smarter
5 simple things that will make your fleet smarter
 
[Infographic] ELD Mandate: Things You Must Know
[Infographic] ELD Mandate: Things You Must Know[Infographic] ELD Mandate: Things You Must Know
[Infographic] ELD Mandate: Things You Must Know
 
2023 Freight Regulations Demystified by NFL Freight
2023 Freight Regulations Demystified by NFL Freight2023 Freight Regulations Demystified by NFL Freight
2023 Freight Regulations Demystified by NFL Freight
 
Navman wireless safetyfirst Ebook
Navman wireless safetyfirst EbookNavman wireless safetyfirst Ebook
Navman wireless safetyfirst Ebook
 
JAA Fuel Flowage Fee Strategy & Methodology
JAA Fuel Flowage Fee Strategy & MethodologyJAA Fuel Flowage Fee Strategy & Methodology
JAA Fuel Flowage Fee Strategy & Methodology
 

JBH-0528 ELD Take Aways022516v2 portrait

  • 1. EXECUTIVE BRIEFING JBH-0528 REV 022516 JBH-0528 ELD Take Aways022516.indd 1 2/25/16 2:26 PM
  • 2. The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) announced on Dec. 10, 2015 that motor carriers must begin using electronic logging devices (ELDs) on all trucks and commercial buses manufactured after 2000. Drivers and carriers have until Dec. 18, 2017 to comply. Drivers who are currently using automatic onboard recording devices (AOBRDs) or install them before the December 2017 deadline, will be grandfathered in. They have an additional two years to update to ELD-compliant technology. The ELD mandate is designed to increase commercial motor vehicle safety, reduce industry paperwork and improve Hours of Service (HOS) compliance. The FMCSA considers ELD records “the most robust form of documentation for on-duty driving periods.” Some drivers currently use paper logbooks to report HOS; however, the ELDs will replace logbooks. This will help the FMCSA maintain accurate records of HOS compliance in the industry. Additionally, roadside law enforcement will be able to use the data to review driver records more efficiently. Not only do drivers need to have this technology installed on their trucks by the applicable deadlines, they must also know how to use it. Drivers who operate under the short haul exemption do not have to comply with this mandate. Per the FMCSA, a short haul driver “operates within a 100 air-mile radius of the normal work reporting location.” Drivers under this classification are exempt unless their duties require them to complete a log for more than eight days in a 30-day period. Additional exemptions are made for driveaway-towaway drivers as well as drivers of trucks that were manufactured before 2000. Drivers who currently use paper logs and must convert to an ELD. SHORT TERM:Rates may increase if capacity decreases when HOS violators become compliant. Drivers and carriers have until Dec. 18, 2017 to comply. J.B. HUNT TRUCKS ARE ELD EQUIPPED Fewer fatigued drivers could result in the following annually: CAPACITY The approximately three million drivers, or 67% of the impacted driver population1 who are currently using paper logs, may experience decreased capacity when they switch to electronic logs. Drivers who have not been compliant with the HOS regulations will see the biggest impact on their capacity. It is estimated that drivers who have been operating beyond the legal hours will see a double-digit reduction in productivity.2 Although this new regulation will affect millions of drivers, the long-term benefits of the ELD mandate outweigh the preliminary cost. Many larger companies have already incurred the cost of ELDs which is around $500 per truck, per year. Smaller carriers and owner-operators will incur a similar expense as they implement ELDs. The FMCSA says ELDs will save the industry more than $3 billion3 annually through reduced paperwork and fewer highway accidents, which includes a savings of $2.4 billion and $572 million, respectively. Even after adjusting for the costs of equipment, compliance and training, the net benefit of ELDs is still more than $1 billion.* In addition to the monetary savings the industry will receive, the ruling will also allow fleet managers to benefit from more visibility and control of their fleets. The J.B. Hunt white paper, “660 Minutes: How Improving Driver Efficiency Increases Capacity,” contains additional information for customers about the HOS regulation and how drivers and carriers can maximize efficiency within that regulation. BENEFITS The ELD mandate will make it more difficult for drivers to misrepresent their driving time, thus reducing HOS violations. By enforcing HOS regulations, this new mandate should reduce driver fatigue and prevent approximately 26 fatalities and more than 500 injuries per year. ELDs will increase HOS compliance by making it easier for drivers to keep accurate time logs. It will also help managers and support staff better improve enforcement of HOS and cut down on paperwork. Because ELDs record location, time and available hours, management can better help drivers improve productivity. The mandate will also reduce liability to shippers due to fewer accidents by non- compliant drivers. SHIPPERS Although most large carriers have already been using ELDs, many smaller carriers will have to overhaul how their drivers maintain their record of duty. Rates for smaller carriers may increase if equipment utilization decreases when HOS violators become compliant. The Owner-Operator Independent Drivers Association (OOIDA) opposes the mandate and has filed a suit against the FMCSA. One concern from smaller carriers is that this mandate will put too much pressure on drivers. According to the OOIDA, motor carriers have already used ELDs to harass drivers. This includes forcing them to log non-driving times when they are still on duty as “off-duty” and reducing driver sleeping periods in the sleeper berth by using the ELD to wake them.4 However, part of this new rule mandates that motor carriers or shippers cannot use data from the ELDs to coerce or harass drivers into violating HOS rules. If a driver feels a shipper or carrier is pressuring him or her to violate the HOS regulations, he or she can file a complaint with the FMCSA. The ELD mandate is a step in the right direction to keep our roads safe. More information about this mandate can be found online at https://www.fmcsa.dot.gov. 1 http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/owner- operators-challenge-electronic-logging-mandate_20151210.html 2 http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/electronic- logbook-mandate-could-drive-supply-chain-gains_20150817.html 3 Federal Motor Carrier Safety Administration (FMCSA), “The Rule.” Volume 80, #241 4 http://www.ooida.com/OOIDA%20Foundation/Issues/ELDS.asp * The figures are annualized using 7% discount rates, per FMCSA. Additional information in this report was obtained from: https://www.fmcsa.dot.gov/hours-service/elds/ electronic-logging-devices JBH-0528 ELD Take Aways022516.indd 2 2/25/16 2:26 PM
  • 3. The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) announced on Dec. 10, 2015 that motor carriers must begin using electronic logging devices (ELDs) on all trucks and commercial buses manufactured after 2000. Drivers and carriers have until Dec. 18, 2017 to comply. Drivers who are currently using automatic onboard recording devices (AOBRDs) or install them before the December 2017 deadline, will be grandfathered in. They have an additional two years to update to ELD-compliant technology. The ELD mandate is designed to increase commercial motor vehicle safety, reduce industry paperwork and improve Hours of Service (HOS) compliance. The FMCSA considers ELD records “the most robust form of documentation for on-duty driving periods.” Some drivers currently use paper logbooks to report HOS; however, the ELDs will replace logbooks. This will help the FMCSA maintain accurate records of HOS compliance in the industry. Additionally, roadside law enforcement will be able to use the data to review driver records more efficiently. Not only do drivers need to have this technology installed on their trucks by the applicable deadlines, they must also know how to use it. Drivers who operate under the short haul exemption do not have to comply with this mandate. Per the FMCSA, a short haul driver “operates within a 100 air-mile radius of the normal work reporting location.” Drivers under this classification are exempt unless their duties require them to complete a log for more than eight days in a 30-day period. Additional exemptions are made for driveaway-towaway drivers as well as drivers of trucks that were manufactured before 2000. Drivers who currently use paper logs and must convert to an ELD. SHORT TERM:Rates may increase if capacity decreases when HOS violators become compliant. Drivers and carriers have until Dec. 18, 2017 to comply. J.B. HUNT TRUCKS ARE ELD EQUIPPED Fewer fatigued drivers could result in the following annually: CAPACITY The approximately three million drivers, or 67% of the impacted driver population1 who are currently using paper logs, may experience decreased capacity when they switch to electronic logs. Drivers who have not been compliant with the HOS regulations will see the biggest impact on their capacity. It is estimated that drivers who have been operating beyond the legal hours will see a double-digit reduction in productivity.2 Although this new regulation will affect millions of drivers, the long-term benefits of the ELD mandate outweigh the preliminary cost. Many larger companies have already incurred the cost of ELDs, which is around $500 per truck, per year. Smaller carriers and owner-operators will incur a similar expense as they implement ELDs. The FMCSA says ELDs will save the industry more than $3 billion3 annually through reduced paperwork and fewer highway accidents, which includes a savings of $2.4 billion and $572 million, respectively. Even after adjusting for the costs of equipment, compliance and training, the net benefit of ELDs is still more than $1 billion.* In addition to the monetary savings the industry will receive, the ruling will also allow fleet managers to benefit from more visibility and control of their fleets. The J.B. Hunt white paper, “660 Minutes: How Improving Driver Efficiency Increases Capacity,” contains additional information for customers about the HOS regulation and how drivers and carriers can maximize efficiency within that regulation. BENEFITS The ELD mandate will make it more difficult for drivers to misrepresent their driving time, thus reducing HOS violations. By enforcing HOS regulations, this new mandate should reduce driver fatigue and prevent approximately 26 fatalities and more than 500 injuries per year. ELDs will increase HOS compliance by making it easier for drivers to keep accurate time logs. It will also help managers and support staff better improve enforcement of HOS and cut down on paperwork. Because ELDs record location, time and available hours, management can better help drivers improve productivity. The mandate will also reduce liability to shippers due to fewer accidents by non- compliant drivers. SHIPPERS Although most large carriers have already been using ELDs, many smaller carriers will have to overhaul how their drivers maintain their record of duty. Rates for smaller carriers may increase if equipment utilization decreases when HOS violators become compliant. The Owner-Operator Independent Drivers Association (OOIDA) opposes the mandate and has filed a suit against the FMCSA. One concern from smaller carriers is that this mandate will put too much pressure on drivers. According to the OOIDA, motor carriers have already used ELDs to harass drivers. This includes forcing them to log non-driving times when they are still on duty as “off-duty” and reducing driver sleeping periods in the sleeper berth by using the ELD to wake them.4 However, part of this new rule mandates that motor carriers or shippers cannot use data from the ELDs to coerce or harass drivers into violating HOS rules. If a driver feels a shipper or carrier is pressuring him or her to violate the HOS regulations, he or she can file a complaint with the FMCSA. The ELD mandate is a step in the right direction to keep our roads safe. More information about this mandate can be found online at https://www.fmcsa.dot.gov. 1 http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/owner- operators-challenge-electronic-logging-mandate_20151210.html 2 http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/electronic- logbook-mandate-could-drive-supply-chain-gains_20150817.html 3 Federal Motor Carrier Safety Administration (FMCSA), “The Rule.” Volume 80, #241 4 http://www.ooida.com/OOIDA%20Foundation/Issues/ELDS.asp * The figures are annualized using 7% discount rates, per FMCSA. Additional information in this report was obtained from: https://www.fmcsa.dot.gov/hours-service/elds/ electronic-logging-devices JBH-0528 ELD Take Aways022516.indd 2 2/25/16 2:26 PM
  • 4. EXECUTIVE BRIEFING JBH-0528 REV 022516 JBH-0528 ELD Take Aways022516.indd 1 2/25/16 2:26 PM