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Electronic Logging Device (ELD) Rule Implementation – New Federal Motor Carrier Safety Regulation

What’s ELD Rule ?
ELD Rule is a new regulation introduced by FMCSA (Federal Motor Carrier Safety Administration) with the purpose of protecting the safety of drivers.

What is ELD Rule about ?
Under ELD rule all commercial vehicles shall be equipped with a self certified and FMCSA registered device recording the RODS (Record of Duty Status) of the vehicles and consequently helping to standardize drivers’ HOS (Hours of Service) . This will prevent drivers to drive more hours than legally allowed, which has often given rise to accidents and damage to people and properties

When does the new rule come into force ?
After a 2 years transitory period (2015-2017) , the compliance has started on dec.18th 2017 while 1st april 2018 is the ”hard effective date” . Federal Inspectors will check that vehicles are duly equipped with an ELD or with an AOBRD (Automatic On Board Recording Device. Drivers of vehicles not properly equipped will be placed out of
service (10 hours) .

What impact will the new rule have on road transportation in the short term ?
Drivers will be able to drive a lesser number of hours tighten the capacity and also impacting the frequency with which a truck is available for use. Estimates expect , on the lanes between 450 and 600 miles, a 4 to 7% capacity reduction and a 5 to 15% costs increase

What impact will the new rule have on road transportation in the short term ?
The lesser flexibility of drivers (in terms of wasted time waiting) could force the shippers/consignees who have slow loading/unloading times to switch their loading/unloading schedules being more flexible and give priority to truck operations to avoid detention costs.
Some hauliers in view of the costs to upgrade the vehicles and of the major daily costs of the services to offer (= minor revenues) might decide to go out of business .
The resulting reduction of trucks available and the above described tariff increases , could push the market to alternative transportation modes , expecially on long distances (rail).

Rest assured we will continue to monitor closely the situation , bringing you up-to-date information.