After many years of planning, a controversial carrier compliance rule will enter its second phase on December 18th 2017. The ELD Rule Mandate requires most commercial drivers to install electronic logging devices (ELDs) for tracking their hours-of-service rather than using paper log books. Phase 2, the phased in compliance phase, stipulates that any devices installed after December 18th, 2017 must be self-certified ELDs that are registered with FMCSA. All AOBRDs (Automatic Onboarding Recording Devices) installed prior to this deadline must be converted to ELDs by December 16th, 2019.
The Federal Motor Carrier Safety Administration (FMSCA) predicts that the ELD Rule Mandate will generate an annual net benefit of over $1 billion as a result of the benefits below:
- Simplified and accurate log keeping with a greatly reduced need for paperwork.
- Enhanced information for easier duty tacking and fatigue management, leading to safer roadways.
- Improved productivity and increased compliance.
However, groups such as the Owner–Operator Independent Drivers Association argue that the ELD Rule will create more problems than it solves. Since the electronic logging devices automatically track driver data, there is no wiggle-room with the hours-of-service that some drivers chose to adjust in the past to meet deadlines. It is anticipated that many carriers will not be able to adhere to the rule or provide optimal service without increasing rates due to the loss of productivity. Some are even predicting that certain carriers will decide to shut-down operations, reducing the available capacity throughout the industry.
With our major focus on compliance, we at Continental Logistics have long been prepared for the effects of The ELD Rule. Continental Logistics has enacted multiple strategies to protect our current and future customers from experiencing the negative effects of the ELD Rule:
- We continually expand our network of carriers to include a variety of mode options.
- We only partner with carriers who meet strict compliance guidelines, many of which are already following The ELD Rule.
- We educate our carriers on the benefits and requirements of the ELD Rule mandate.
- We actively audit our carriers to ensure adherence to compliance guidelines and performance expectations.
- Our relationships with our carriers allow us to negotiate the best rates on behalf of our customers.
If you believe that your freight management company or freight broker has not fully prepared for the impact of the ELD Rule like we have, please contact us to discuss your options for managed or brokered freight services through Continental Logistics. For more information on our services, please visit: continentallogistics.com/services/