October 23, 2016

How Will The ELD Mandate Affect Your Trucking Company

How Will The ELD Mandate Affect Your Trucking Company

In December 2015, the FMCSA announced the ELD mandate. How will this ELD mandate affect your trucking company?

As per this new rule, all commercial motor vehicles (CMVs) must be equipped with AOBRDs (Automatic On-Board Recorder Devices) or ELDs (electronic logging devices) by the end of December 2017.

Furthermore, CMVs must have electronic logging devices (ELDs) by the end of December 16, 2019. Beyond that, AOBRDs will be no longer accepted, and CMVs must be equipped with only certified ELDs.

Here is a graphical representation of the ELD mandate compliance timeline.

ELD Mandate Compliance TimelineThis final ruling of ELD mandate has brought up a lot of questions for drivers, fleet managers, and trucking companies. Many of them are not sure about the advantages and disadvantages of this new ELD mandate.

  • Is the final ELD mandate going to make trucking companies more productive?
  • Will the ELD rule increase safety?
  • How will this ELD mandate affect trucking companies?
  • Does the ELD mandate increase operational costs?

In this blog post, we discuss how the ELD mandate affects trucking companies, fleet managers, and CMV drivers.

How The ELD Mandate Affects Trucking Companies

Most trucking companies have welcomed the idea of an ELD mandate. However, there are some who think that it is being forced upon them and that the new ELD mandate is only going to increase operational costs.

The benefits of an electronic logging device, however, far outweigh its cost.

Let’s see how the ELD mandate affects trucking companies in various ways.

  • Cost of Compliance

Cost of ELD Mandate Compliance

The new ELD mandate does come with an additional cost of buying ELDs. However, you do not have to pay a lot of money to be compliant.

How much money does it cost to be ELD compliant?

It mainly depends on the ELD provider you choose.

For instance, some ELD providers charge as much as $40 or $50 per month per ELD device. However, ELDs start from as little as $20 per month.

Additionally, many ELD providers charge you for hardware, installation, and the monthly cost of running an ELD. On the other hand, KeepTruckin only charges for the monthly fee, i.e., $20 per month. You do not have to pay anything for hardware or installation.

Use this interactive ELD price comparison chart to figure out exactly how much you will have to pay for ELD compliance.

Note: Do not forget to check the duration of the contract. Most ELD providers bind you with a 3-year or 5-year contract. At the moment, only KeepTruckin offers a 1-year contract, so you do not have to pay a lot of upfront money.

We try our best to offer the easiest way to ELD mandate compliance.

  • Improved CSA Scores

Another positive impact of the ELD mandate is that it can help you improve your CSA score. Many trucking companies have seen dramatic improvements in their CSA scores after implementing electronic logging devices.

As ELDs automatically record information and minimize violations, CSA scores are bound to improve significantly.

If you are interested in this, check out this post: 6 Simple Secrets to Improve CSA Scores.

  • Increased Safety and Fewer Violations

ELD Mandate Leads to Increased Safety & Fewer Violations

Safety has been one of the biggest factors in the implementation of the ELD mandate. It is believed to provide a safer working environment for drivers, fleet managers, as well as general public.

According to FMCSA, the ELD mandate is estimated to save 26 lives and prevent 562 injuries every year.

Once the ELD mandate is implemented, it will lead to a much safer working environment for trucking companies. It will lead to fewer HOS violations, quicker roadside inspections, fewer accidents, and a lower number of lawsuits.

  • Less Paperwork

As the ELD mandate requires almost all data to be recorded automatically with electronic logging devices, there will be significantly less paperwork to deal with.

Drivers don’t have to use paper logs anymore. Instead, they can switch to electronic logs, which will be seamlessly connected with ELDs.

  • Simple IFTA Calculation

Electronic logging devices and ELDs simplify quarterly IFTA calculation

Manually calculating IFTA reports is one of the most tedious and error-prone tasks for fleets. It requires carefully reviewing trip sheets from the previous quarter to calculate how far vehicles traveled in each jurisdiction, which is highly inefficient and prone to mistakes.

An ELD with the right set of features can automatically calculate IFTA reports for you.

For instance, the KeepTruckin ELD Plus package calculates your IFTA reports for you and allows you to export all the data that you can quickly file. Here is a step-by-step guide on how you can calculate quarterly IFTA reports with KeepTruckin.

  • Lower Insurance Premiums

Contrary to common belief, electronic logging devices are going to lower insurance premiums for trucking companies.

We believe that trucking companies that implement ELDs can significantly reduce insurance costs. More and more insurance companies are now considering ELD data when determining rates.

The ELD mandate will make your fleet safe, which results in lower insurance premiums.

  • Efficiency and Productivity

ELDs and ELD Mandate Make Trucking Companies More Efficient and Productive

The FMCSA ELD mandate is believed to make trucking companies more efficient and productive. This is because electronic logging devices can:

  • Reduce paperwork, save a lot of time, and prevent many mistakes.
  • Keep dispatchers up-to-date on a driver’s status, which leads to better planning and fewer HOS violations.
  • Allow fleet managers to identify bad driving behaviors that lead to extra expenses. According to an estimate, for a truck that consumes $70,000 of fuel per year, approximately $5,600 is spent on idling every year. ELDs can save this money for your trucking company by identifying such bad driving behaviors.

What’s Next?

There is still some time left for the ELD mandate to kick in. However, trucking companies are already seeing the benefits of using electronic logging devices, and they are implementing ELDs before the ELD mandate makes them mandatory.

Some drivers may find it difficult to transition. Educate them and tell them about the various benefits they get to enjoy with ELDs and electronic logs. Once they see how much easier and safer it is, they rarely go back to paper logs.

Why KeepTruckin?

As per the ELD mandate, electronic logging devices will start becoming mandatory from December 2017. It is wise not to wait until then.

Make your transition now, so you can get all the benefits ELDs bring and gradually familiarize your staff with it before it becomes mandatory.

KeepTruckin offers one of the best and most cost-effective ELD solutions for trucking companies. KeepTruckin ELDs start from as low as just $20 per month with tons of great features and only a 1-year contract.

Request a demo and one of our product specialists will get back to you as soon as possible with all the necessary details.

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