Download - Build Your ELD Strategy
BUILD YOUR ELD STRATEGY
A review of current regulatory and compliance issues that will impact your
business.
November 15, 2016
BUILD YOUR ELD STRATEGY
Tonight’s Speakers
John SimmsHNI Risk Services
Marc LonsonSean MeisterM2M in Motion
Edward BassTravelers
ABOUT HNI
5
Effectively managing your insurance and benefit costs requires change.
Unfortunately, most traditional insurance brokers play the traditional “quote game”, bidding insurance markets you can’t control and delivering anything but change.
But, you want more than just insurance. In an era of increasing cost, risk and regulations, you want a partner that can keep you on the cutting edge.
As emerging issues pop up on an almost weekly basis, you need to know how they will affect your business. You want the straight scoop from a trusted advisor that knows your business & your goals.
You want INSIGHT. Perhaps our biggest difference is how we deliver insight to our clients; this is how
we turn insurance into a strategic business tool.
HNI Risk Services – IL Trucking Association
First in a series of technology and the effect / influence it is having on the trucking industry
In Partnership with the IL Trucking Association & Travelers Insurance
Next up – Video Technology (Jan 2017)
Agenda1. Court Rulings2. Mandate Review – What’s Required?3. Insurance & ELD’s4. Expectations of the Provider5. Technical Overview – Open Platform vs. Single Provider6. The Players7. Making a Selection8. Frequently Asked Questions9. Your Time to Ask Questions
ELD Mandate Final Rule Summary
ELD Mandate Court Rulings
Appellate Court Denies OOIDA Lawsuit
A federal appellate court has upheld the Federal Motor Carrier Safety Administration’s
electronic logging device mandate, which now remains on track to go into effect starting
on Dec. 18, 2017.
The U.S. Court of Appeals for the Seventh Circuit rejected the argument of the Owner
Operator Independent Drivers Association, which had sued to throw out the rule on the
grounds that it would violate drivers’ rights to privacy under the Fourth Amendment.
In denying OOIDA’s petition for judicial review, the court stated that it found that the ELD
rule is “not arbitrary or capricious, nor does it violate the Fourth Amendment.”
Weekly Satellite Usage Fee Deemed Unlawful Forced-Purchase
Under Federal Leasing Regulations (10-19-2016)
In a closely watched decision, a federal court of appeals found a motor carrier
violated the No Forced-Purchase Provision of the Federal Leasing
Regulations (49 C.F.R. §376.12(i)) when it passed through a $15-per-week
charge to owner-operators for sat-com network usage. Fox v. TransAm
Leasing, Inc., No. 15-3203 (10th Cir. Oct. 18, 2016). While the Tenth Circuit
ordered the district court to grant the owner-operators’ requests for
declaratory and injunctive relief, the Court found the owner-operators’ claim
for damages as a result of the violation failed as a matter of law because the
owner-operators presented no evidence of actual damages resulting from the
$15 usage fee.
ELD Mandate Court Rulings
ELD Mandate Court Rulings
While he doesn’t expect the Trump administration to reverse
safety regulations, it could be “more realistic” in the way
regulations are implemented.
“Because FMCSA still has not published some of the
technical standards for electronic logging devices, for
instance, the Trump administration would be much more
likely to call for a delay of the December 2017
implementation date”
Observations
• What we are seeing• Hours of Service – CSA
• Administrative time
• Utilization of ELD in transportation safety management process
Electronic Logging Devices
• Device Adoption Deadline• December 2017 unless using automatic on-board recording devices.
• Grandfathering Existing Equipment• December 2019- FMCSA will allow fleets to use ELD like devices
meeting current standards for Automatic On Boarding Recording Devices. (49CFR395.15)
Limited Exceptions
• Drivers who use paper logs for not more than 8 days during any 30 day period
• Driveaway – towaway operations where vehicle is the product and being delivered
• Drivers of vehicles manufactured before 2000 model year
• Drivers who operate using the logbook timecard exception
• Under the 100 air mile exemption – out and back within 12 hour period
Since ELD’s negate the need for supporting documents to verify driving time, FMCSA has implemented new document retention requirements to verify on duty, not driving time. Requires up to eight supporting documents per driver per 24 hour period.
• Bill of Lading or documents indicating origin and destination
• Dispatch records, trip records
• Expense receipts related to on duty not driving
• Text, email, instant messages or other mobile communication through fleet management system
• Payroll, settlement sheets, or other documents reflecting to driver payment
Drivers must submit 13 days and to law enforcement upon request. Company must maintain in manner that can be easily matched to log.
ELD Mandate Final Rule Summary
What user documentation must be on board a driver’s commercial motor vehicle?
• User manual for the driver describing how to operate
• Instruction sheet describing data transfer mechanisms supported by the ELD and step by step instructions to produce and transfer driver hours of service records to authorized safety official
• Instruction sheet for the driver describing ELD malfunction reporting requirements and recordkeeping procedures during ELD malfunction
• Supply of bland driver record of duty sufficient to record driver’s duty status and other related information for a minimum of eight days.
ELD Mandate Final Rule Summary
ELD Mandate Final Rule Summary
Motor Carriers Must Set Up User Accounts for:• Carrier Employed Drivers Required to use
ELDs;• Support Personnel Authorized to Manage
Accounts
One Account Per Driver• Company Owner/Drivers Must Maintain a
Driver & Administration Account
Unassigned Drive Time Must be Accounted For
Keep ELD Records for 6 Months
Will Switch to Driving Mode at 5mph
Driving Time Cannot be Edited
Drivers Must Certify Carrier Changes to ELD Records
ELD Mandate Final Rule Summary
ELDs Must Electronically Transfer Records Either:
“Telematics” Approach Capable of:• Wireless Web Service and• EmailOR“Local” Method Capable of:• Bluetooth and• USB 2.0 Transfer
In all Circumstances, Graph-Grid Required Either:• On the ELD Display or Paper Printout
Must Retain 8 Records Max Per Driver Per Day• If More than 8, Must Keep Documents Nearest
Beginning & End of Driver’s Shift• Must Retain in a Manner which Would Facilitate
Matching• Paper Docs that are Available Digitally do not
have to be Retained
Qualifying Records Must Include• Driver ID; Date; Time; and Location
If Driver has Fewer than 8 Documents with all 4 Elements, a Document that does not Include Time Qualifies
ELD Mandate Final Rule Summary
Personal Conveyance
• Not Limited
• Recorded as a Special Category (Off-Duty Time)
Yard Moves
• Recorded as a Special Category (On-Duty Not Driving Time)
Device Certification
• Vendor Self-Certified to FMCSA’s Technical Specifications
• Register with FMCSA
• Website Listing of Certified Devices
Expectations:
Minimal disruption – The solution should minimize the disruption to your team of
drivers, dispatchers and back-office staff.
Flexible solution - Choosing a solution that is flexible, adapting to your business
needs, both now and in the years to come. (Open Architect)
Ease of use - A solution that requires minimal training, making it simple enough for
the whole team to get up to speed quickly.
Reliable software provider with a good reputation - Provided by a supplier with
experience in the trucking industry, is reliable,
and offers the security of future updates and compliance upgrades as required.
Comprehensive solution - A supplier that can offer a single, integrated solution that
covers not just electronic logging but other compliance and productivity tools.
Cost Competitive
ELD Mandate Solution Expectations
ELD Mandate Solution Expectations
When to Start?
How long will it take you to fully transition to electronic logging? The answer will vary
depending on a number of factors, including:
Number of trucks and drivers.
Percentage of vehicles that already have telematics devices fitted.
Drivers’ adaptability to change.
Amount of testing you want to do prior to launching.
How close you are to the December 2017 deadline.
What type of devices you Choose
ELD Mandate Solution Expectations
Allowing more time gives you several advantages:
You don’t rush into choosing a solution that could be the wrong choice for your
business.
You allow more time for the RFP process, pilot programs, UAT (User Acceptance
Testing), training and unexpected scenarios.
You can consider other technology upgrades to roll out at the same time.
You can enjoy preferred status by customers looking for an ELD-compliant carrier.
Benefit sooner from the efficiency gains a telematics system offers.
Talking Points
• Open Architecture vs Closed Architecture
• ELD Technical Configuration• FMCSA Certified Companies
• Understanding the Financials
Open vs Closed Architecture
OPEN
• Route4Me• Smart Witness
• M2M• Vistracks
ELD FMS
RoutingOn-
Board Video
CLOSED
Camera
FMS
ELD
ELD Configuration
• FMCSA Minimum Requirements• 1 Hour GPS Location• No VIN Manipulation from
ECM• Automatic Duty Status
Changes• ON DUTY DRIVING
• 5MPH
• ON DUTY NOT DRIVING
• 5 Minutes
• 1 Minute
• LOG Transfer• Email
• Bluetooth
• USB 2.0
• Wireless Web
• NA Until Dec 2017
• Only 13 companies on fmcsa website
Understanding the Financials
• What to look at for in an ELD Provider?
• Platform?• Hardware?• Data?
• Wireless Carrier?• Ongoing Training?• Tech Support?• Mobile Support?
• Locking Devices Down?• Limited Functionality? • Customization?
ELD Mandate - $ Cost $
Up-front hardware cost – All ELDs involve some amount of hardware that must be installed in the
vehicle. This hardware cost varies greatly, but some of the most popular system start around $600
per unit. This can be a very difficult cash outlay, especially for smaller fleets, so fortunately there
are several methods for paying this up-front cost:
• Cash up front: The simplest way to pay for hardware is by purchasing it outright. If your
cash flow supports this large initial purchase, this often gets you the best overall pricing.
• Financing: most ELD vendors that require a hardware purchase offer financing options.
Customers with sufficient credit can pay for the hardware in installments, usually bundled in
with the device’s monthly service plan. You’ll pay a little more in interest to the financing
company, but this eases the cash flow burden of buying outright.
• Lease / Service only pricing: some ELD vendors skip the hardware purchase entirely and
simply bundle hardware and services together into one monthly price. This can be very
attractive for fleets that struggle to get financing and are trying to avoid a large cash outlay.
ELD Mandate - $ Cost $
Monthly service – Nearly all ELD vendors will charge a monthly amount per unit. This is particularly true for products that provide a larger range of telematics features (tracking, navigation, messaging, etc.) Over time, this monthly service usuallycontributes more to the total cost of ownership than the up-front cost does, so it is important to pay close attention to this.Communications – Many ELDs use their own proprietary display and communication device, and the cost of transmitting data back and forth to the home office is included in the monthly service cost. However, other systems require the trucking company or the driver to provide a 3rd party tablet or cell phone that is used for display and communication. In these cases, you will have to pay for a monthly data plan to the cellular company providing the device (i.e. Verizon, Sprint, AT&T, etc)Installation – A compliant ELD must be wired into the vehicle’s ECM. A display of some kind must also be hard-mounted where the driver can see it while the truck is moving. Some ELD vendors will provide an installer at your location at no additional cost, but others charge for installs. If you have your own repair facilities or a dedicated maintenance provider, it’s often best to have the ELD provider train your own technicians on the first several units, so they can do all future installs themselves.Add Ons – ELD systems include a wide variety of features. Some of these features will come standard, while others will be an additional cost. Standard features often include GPS tracking, messaging, basic back office reporting, and Hours of Service logs. Add-on features for an extra charge can include driver navigation, in-cab video training, dash cameras, tire pressure monitoring, and more.
ELD Mandate - $ Features $
Electronic Logs – The core function of an ELD is recording a driver’s records of duty
status. How easy and user friendly this is for the driver is an important consideration.
Also important is how easily back office staff can monitor logs for violations and
unlogged time, and make appropriate corrections.
DVIR – Many ELD systems also include a system for electronically performing Driver
Vehicle Inspections.
GPS Tracking – Probably the most common feature of any telematics system is GPS
tracking. Keep better tabs on the locations of your vehicles, often in near real time.
Messaging – Two-way messaging is a common feature that allows the driver and
office staff to send messages back and forth through the system.
Dispatch Workflow – Some systems go beyond basic text messaging to include more
complex workflow tools that allow drivers to report their progress on various tasks.
ELD Mandate - $ Features $
Navigation – Gives the driver a GPS navigation tool designed for truck routing or other
appropriate restrictions.
Engine data – Get information on engine performance like MPG and fault codes
Safety Alerts – Get automatically notified of speeding, hard breaking, sharp
acceleration, lane departure, etc.
Performance Reporting – Monitor driver idle time, out-of-route miles, detention at
customer locations, and more. These sort of tools are designed to help make your fleet
more efficient and save money.
IFTA – GPS information gathered by the system can often be used to automatically
generate IFTA fuel tax reports. Some system will even create the official form and file it
for you.
ELD Mandate - $ Features $
Document scanning – Some telematics systems allow the addition of a portable scanner, giving the
driver the ability to scan paperwork to the back office right from his vehicle.
Signature Capture – Some systems use a portable display that can double as an electronic signature
capture device. Eliminates paperwork, and makes signed shipping documents available instantly.
Tire Pressure monitoring – More and more ELDs are becoming integrated with tire pressure
monitoring solutions so you can see the status of your fleet’s tires in real time.
Dash cameras – Dash cameras are still rare, but becoming more popular. Some telematics systems
integrate directly with dash cameras.
Video training – Send training videos to your drivers that they can watch on their ELD screen.
Integration with TMS – If you use transportation management software in your back office, it is
important to find out how well a proposed ELD integrates with it. A good integration allows things like
viewing GPS location and HOS time directly from the TMS, as well as sending out load information
and dispatch messages automatically.
ELD Mandate - $ Return on Investment $
Fuel cost savings – The best way a telematics solution can save money is on fuel cost. ELDs can
usually read engine data to give you insight into your least fuel efficient vehicles. And, you can
monitor and reduce driver idling time and out-of-route miles using GPS tracking.
Maintenance – Constant access to real-time engine data can help you spot issues and repair
problems before they cause a costly breakdown.
Driver incentives – Better monitor your drivers’ behavior and performance. Incentivize low idling,
on-time delivery, safety, and many other desired behaviors that can save your company money.
Safety – Accidents are extremely expensive. Many ELD devices also provide safety monitoring
tools like speeding and hard breaking alerts that can help you address safety issues before they
turn into accidents.
DOT Violation fines – ELDs do a fantastic job at minimizing hours of service violations. Form and
manner violations go away almost entirely, and achieving violation-free logs becomes much easier.
Avoiding fines during roadside inspections and audits can quickly become a large cost savings.
ELD Mandate Frequently Asked Questions
Can Smart Phones & Wireless Devices be Used as ELDs?
Yes, as Long as They Meet the Rule’s Technical Specifications
Portable ELDs must be Mounted while Driver is Operating a CMV and be
Visible to the Driver from a Normal Driving Position
Are Rental/Leased Trucks Exempt?
The Rule does NOT include an exemption for leased or rented CMVs.
Will ELD’s eliminate people in my Safety Department?
NO!
ELD Mandate Frequently Asked Questions
What Happens if a Device Malfunctions?
The Driver Must:
• Notify the Carrier in Writing within 24 Hours;
• Create paper RODS for Current 24 Hour Period and Previous 7 Days,
Unless Data can be Retrieved from the ELD;
• Prepare Paper RODS until ELD is Repaired or Replaced
The Carrier Must:
• Repair or Replace ELD within 8 Days of Notification or Malfunction
Discovery;
• If Needed, Carrier Can Request Extension from FMCSA within 5 Days of
Driver Notification of Faulty Device
ELD Mandate Frequently Asked Questions
How Does a Driver Account for HOS Generated on Multiple Devices that are
Incompatible?
If a driver uses multiple ELDs and the data from one system cannot be
uploaded into the other system, the driver must enter missing duty of
status information into the ELD currently being used or provide a printout
from the other system(s) for the current 24 hour period and the previous 7
days.