ELECTRONIC LOGGING
Fleets Take Different Paths to Electronic Logging Device Adoption The concept sounds simple. Rather than having drivers fill out logbooks noting their on-duty hours, offduty hours and various other iterations of the way they spend time with their truck, fleet managers can turn to current technology and automate the process. Electronic Logging Devices (ELDs) get rid of reams of paperwork and lessen the probability of a costly mistake in Records of Duty Status. But the path to ELD adoption has been rocky, with concerns from fleets about cost and implementation, and complaints from drivers about being constantly monitored while working. A Federal Motor Carriers Safety Administration (FMCSA) mandate to install Electronic On-Board Recorders (the precursor to today s electronic logging device) was initially supposed to go into effect in 2012. Industry objections led to the requirement being rescinded and reworked. With a 2017 compliance date now on the horizon, the discussion of adoption has moved from a question of yes or no to a question and when and how. Fleets and drivers that have not begun using the technology yet are in the process of learning more about it. Whether acceptance of ELD implementation is grudging or enthusiastic, all concerned parties need to understand how it will impact business. An Electronic Logging Device:
ELD and Safety The purpose of ELDs is to increase trucking safety by ensuring that drivers adhere to the Hours of Service rules, which are meant to prevent fatigued driving. Many drivers still use paper logbooks to document their day. Electronic logging eliminates the paperwork and takes over the math, calculating complex Hours of Service rules. The driver still needs to set it to duty status: Driving and On-Duty Not Driving, but then the hours are counted automatically. Most also alert the driver when they are getting close to the end of driving time. Most importantly, since the device is connected to the vehicle, it offers accurate and up-to-date documentation of the hours driven. The industry has always been performance-focused, charged by customers to get freight in on time, says Lane Kidd, director of the Trucking Alliance, a non-profit safety organization that supports mandatory ELDs for trucks. The best way to do that was to use a paper logbook. The elephant in the room the worst kept secret in the industry is that drivers did not obey the law completely in how they filled out their logbooks. We know that anywhere from one-quarter to one-third of all accidents are related to driver fatigue. Is that due to being behind the wheel too many hours? Probably. A 2014 study by the FMCSA supports that. The study looked at crash rates from 11 carriers of varying sizes, though skewed to larger trucking companies. The numbers show that vehicles with ELDs installed had an 11.7 percent lower crash rate than those without, and a 5.1 percent lower preventable crash rate. 6 5 4 3 2 1 0 TOTAL PREVENTABLE DOT - RECORDABLE FATIGUE RELATED Graphic from FMCSA compares crash rates for vehicles with and without Electronic Hours of Service Recorders, also known as ELDs. 1
Hesitation and Apprehension Drivers who opposed the ELD mandate worried about a constant connection between office and vehicle. Their objections to the possibility of interruption during off-duty and sleep time, as well as the loss of control of their own records led the FMCSA to include specific provisions in the 2017 mandate that discourage harassment and enable more driver control and comment on their records. Some drivers feel that, rather than allow them the rest they need, the ELD will force them to ignore fatigue and keep driving because they know that the clock is ticking. For most the issue is one of feeling over-regulated in a career that they chose partly because it gives them a feeling of freedom. Still many drivers who objected to the ELD in theory, found it useful when their company implemented it. Getting rid of the paperwork saved them time and stress. Their logbooks were accurate and up to date. Customer delays when picking up or delivering freight were recognized and paid for. Management stepped in to ask customers to adjust load schedules so that they were more realistic for the driver. One small carrier, who also drives, told Overdrive magazine in 2012 that he believes having a documented record of wait times at shippers and receivers gave him stronger standing when discussing detention times with his customers. He believes that a mandate could lead to an industry standard of including detention pay in customer contracts. Every trucking company would have a tool to show the delay and where it s happening either they could raise the freight rate to adjust for that time so that overhead is still being met and drivers are being paid a higher rate, or you could charge detention on the dock, he told the magazine. Supporters of the ELD mandate, knowing that a significant number of valued drivers object to the tool, even saying they will leave the industry, know that communicating the benefits of the technology to those drivers is key to acceptance. Carrier Concerns The FMCSA looked at costs when considering the ELD mandate and found that prices ranged from $165 to $832, with the most popular device coming in at just under $500 per truck. They put the annual cost of adoption at $975 million for the industry, with another $604 million added to cover the cost of more drivers and vehicles to ensure that no driver exceeds HOS limits. 2
Those are big numbers. But the FMCSA also tallied the return on that investment, estimating paperwork savings of more than $1.7 billion a year and crash reduction costs of nearly $395 million. Add to that the reduction in HOS violation penalties and the impact on CSA ratings. Fleets will save an estimated $700 per vehicle per year by eliminating paper logbooks. Still, fleet owners, especially smaller ones, are more concerned with the initial costs of implementation than with the eventual return on investment. In addition to buying and installing the equipment, both drivers and back office workers need to get training. But many industry experts believe that the costs of implementing the ELD mandate will be worth more than what a carrier might see on a balance sheet. Kidd, of the Trucking Alliance, points to the potential impact universal adoption will have on the industry. Electronic logging devices ensure that drivers cannot extend their hours behind the wheel beyond what federal law says they can. But something else happens, he says. Today, a trucking company that wants to obey the HOS laws strictly loses business to companies that don t. That keeps freight rates down, it keeps driver wages down and it keeps the earning power of the industry down. With an ELD mandate, al trucking companies play by the same rules and get paid an honest wage to haul freight. ELD Implementation Many fleets and owner-operators already have ELD technology on their trucks. Some made the move to install them when the 2010 rule was announced. Others saw the technology as a worthwhile safety advance or a way to save time on paperwork. Those vehicles have an additional two years to upgrade their systems to meet the 2017 standards. Ultimately those carriers will find out that the hardware is more robust now, says WEX Senior Product Manager of Telematics Tim West. There are more capabilities to keep all types of records stored HOS, maintenance, inspection and to create new records from the driver on the road that synch with the office. Plus, rather than having a very specific application in the office that goes one to one with the EOBR, the current ELDs work more like an application on a smartphone. 3
The Bigger Picture ELDs are a tool, designed to streamline a particularly tedious task, but they have other benefits. Fleet managers can clearly see a driver s available hours. Drivers can breeze through roadside inspections. Time spent on paperwork can go to more productive, customer-oriented tasks. The information that fleets get from ELDs and other technology now widely used in logistics, ultimately can give carriers a fast and accurate view of what is happening with their drivers and vehicles. They have the tools to not only monitor in real-time, but also to calculate the total cost of ownership, West says. They can see a very precise breakdown of the cost associated with each vehicle, and relate it to runs, fuel purchase and driver behavior. The two-year window for carriers to adopt electronic logging technology means that companies can take small steps leading up to the date, in a way that makes sense for their particular situation. When it comes to compliance with new regulations, there is time to adapt, says says West. They can spread the cost over the next two years, with a plan to do that incrementally so they are not taking a giant leap in incorporating new technology into their vehicles and organization. 4
ABOUT WEX FLEET ONE Headquartered in Nashville, Tennessee, WEX Fleet One provides fuel cards and fleet-related payment solutions to businesses and government agencies with vehicles. Specifically, the company offers fuel and maintenance purchasing controls, detailed reporting, online account management and other cost-saving services to its customers across the country. Current WEX Fleet One merchant partners include regional and national companies such as Loves, TA/Petro, Pilot Flying J, BP, Cenex, Chevron/Texaco, Circle K, Kroger, Mapco, Murphy USA, Sunoco, Valero, and Hess. For more information on WEX Fleet One, please visit www.fleetone.com. Truck Drivers in the U.S.: Fact Sheet 3.4 million Number of truck drivers in the U.S. 1.3 million Number of carriers in the U.S. $41,930 Average driver salary nationwide. 35,000 to 45,000 Drivers currently needed. 239,000 Projected drivers needed by 2022. 96 percent Average turnover rate in long-haul trucking fleets. 9.96 billion Freight tonnage moved by truck last year. 70 percent Average amount of American freight moved by truck. 37 billion Gallons of diesel fuel consumed each year by freight trucks. Source: U.S. Bureau of Labor Statistics FleetOne.com 1.866.51SALES 5