3 ELD Mandate Considerations for Freight Broker Agents

Posted & filed under Authorized Agents.

With the December 18, 2017 deadline for ELDs having already arrived, it’s important to fully understand the upcoming landscape in order to help carriers and customers understand how this may affect their business. Hopefully they are already prepared, but here are three considerations to help you educate them if they haven’t started the process.

 

1. TIMELINE

Dec. 18, 2017

Carriers are expected to be compliant by December 18, 2017. According to industry publications, carriers will not be taken out of service for violations between December 18, 2017 and April 1, 2018. Violators may, however, find themselves in the crosshairs of federal investigation for egregious or repeated offenses and may receive citations and/or warnings. Also, carriers that haven’t ordered Electronic Logging Devices (ELDs) prior to December 18, 2017 may have difficulty buying them as they will be in short supply given the demand imposed by the mandate.

 

Apr. 1, 2018

Carriers found without ELDs will reportedly be placed “out of service” and will not be able to drive away from the inspection. The carrier will likely be issued a mandatory 10-hour break and will have to install a device before continuing. This deadline extension is to help with the Christmas season and to give the industry time to adapt.

According to the CVSA as published on the Keep Truckin Blog, “[This new phased-in approach] will provide the motor carrier industry, shippers, and the roadside enforcement community with time to adjust to the new requirement before vehicles are placed out of service for ELD violations.”

When discussing the reasoning behind the delay, the CVSA’s Executive Director, Collin Mooney, stated,

 

“We don’t have a handle on how many motor carriers are not in compliance with the [ELD mandate] yet; some say it’s 10% while others say it’s as high as 40%. Even though we inspect only a small fraction of the trucks out there, it still gives us a good sample size as to how many are in compliance with the new rule.”

 

In his letter to the FMCSA informing them on this new phased-in approach, Mooney went on to write:

 

“I also want to assure you that, despite what opponents of the mandate may argue, the enforcement community is ready to begin enforcement of the requirement on Dec. 18, 2017. On that date, inspectors and roadside enforcement personnel will begin documenting violations on roadside inspection reports and, at the jurisdiction’s discretion, will issue citations to commercial motor vehicle drivers operating vehicles without a compliant ELD.”

 

For a complete look at the ELD mandate timeline, check out our blog titled Navigating the Road to ELD Compliance.

 

2. WHO MUST COMPLY?

All drivers in vehicles over 10,000 lbs and newer than year 2000 must be compliant. These requirements cover the vast majority of shipments done in the standard FTL freight industry.

Below is a list of exempt drivers as published by the FMCSA:
• Tow-away operations (Vehicle is the commodity being delivered/RVs)
• Local drivers on time cards AND driving within 100-mile radius
• Drivers operating eight or less days in a 30-day period
• Trucks manufactured in 1999 or earlier

 

ELD exemptions

*Overdrive – 60 percent of small fleets still need ELDs, survey finds

 

3. COSTS OF VIOLATION

There are many implicit and explicit costs associated with violations to the new mandate. The table below published by Truckinginfo shows the explicit costs imposed by the FMCSA, but there are other costs that could impact a carrier’s business. Shippers and brokers are less likely to use a carrier with a poor safety record. Carriers that violate the safety regulations could also struggle to attract drivers and technicians as they will suffer damage to their brand and good name. On a positive note, carriers that have implemented action plans and policies to be compliant will be given special consideration with the FMCSA, and the fines may be mitigated out of the carrier’s “good faith efforts.”

 

FMCSR Violations

As the ELD mandate takes affect, customers and carriers will look to you for guidance. Avoid any additional stress by utilizing the resources our team has pulled together. Visit our page on Electronic Logging Devices for more information.

 

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The England Logistics Freight Agent Program provides companies with information and tools to expand and allow them to manage their business. Backed by the England Logistics brand, participating agents enjoy increased market visibility and established business connections. Our dedicated team also delivers consistent support for day-to-day operations. This allows freight agents to expand their portfolio while reinforced by a reliable team.

 

***THE FOREGOING IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO CONSTITUTE LEGAL OR OTHER ADVICE RELATING TO THE ELD MANDATE OR ANY OTHER MATTER.***