December 18th marked the first day of enforcement of electronic logging devices (“ELDs”) for truckers. Once regulated using easy-to-“fudge” paper logs, drivers now must log their duty status into an electronic device that monitors hours of service.
This has been a day that has been sought after for many “play fair” advocates, but it has been a day that has been dreaded for many small carriers and owner-operators. Due to anticipated roll-out issues, such as connectivity or server issues, law enforcement is taking a phased approach to enforcement. While those not in compliance may now receive a citation, drivers will not be taken out of service, and violations will not count against federal safety scores until April 1st. Fleets using automatic onboard recording devices (“AOBRDs”) have been grandfathered into ELD compliance until December 16th, 2019.
Industry executives have likened the ELD mandate to 1986’s requirement that a driver carry a commercial driver’s license. Carriers and shippers alike expect rate increases, as some capacity is expected to come offline as a result of ELD enforcement. A number of sources have estimated capacity reductions varying from 4% to 10%, with rates to increase 5% to 15%.
If you operate a trucking entity and are considering how changes in regulation and other factors will impact your strategic plans, contact us for a confidential discussion.
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