Guide to ELD for Trucking
Individuals in the trucking industry should not only familiarize themselves with all aspects of the FMCSA's ELD mandate but also grasp additional information, such as the ways in which they can profit from the utilization of an ELD, ultimately enhancing safety, efficiency, and overall profitability. For many trucking companies, an ELD is not just a mandatory requirement but also a tool that contributes to heightened driver and fleet safety, increased operational efficiency, and improved financial gains. Therefore, it is crucial for those in the trucking sector to gain a comprehensive understanding of the ELD mandate and explore the various advantages, including the potential for profit growth, associated with its implementation.
What is the FMCSA's ELD mandate?
The FMCSA ELD mandate constitutes a federal law stipulating that operators of commercial motor vehicles, falling under the mandate's coverage, must utilize compliant electronic logging devices. While certain operators in the trucking industry may be exempt, the majority are obligated to adhere to the mandate.
Comprehending the ELD mandate in its entirety may pose challenges, but a deeper understanding enhances compliance and unlocks more benefits from using the ELD. The primary objective of the mandate is to ensure the safety of all commercial drivers on the road by addressing issues like driver fatigue, enforcing Hours of Service regulations, and reducing road accidents.
As per the FMCSA, they state, "[FMCSA] announced the adoption of a Final Rule that will improve roadway safety by employing technology to strengthen commercial truck and bus drivers’ compliance with hours-of-service regulations that prevent fatigue."
For further insights into the ELD mandate, it's recommended to explore additional resources to gain a comprehensive understanding of its implications and benefits.
How to increase profits using the data from your ELD
Utilizing data from Electronic Logging Devices (ELDs) offers numerous advantages, and in this trucking guide to ELDs, we will highlight strategies for leveraging ELD data to boost profitability. ELD tools provide extensive data on a trucking company's operations, often revealing previously inaccessible insights.
This data becomes a valuable resource for actionable insights that significantly impact profits. Companies can harness their ELD data for various purposes, including:
Reducing fuel consumption: According to the American Transportation Research Institute (ATRI), fuel constitutes 24% of operational costs. ELD systems track idle time for each driver, presenting the information in user-friendly reports. Fleet managers can use these reports to incentivize drivers to minimize idle time, thereby saving on fuel costs and providing monetary rewards to drivers.
Improving driver safety and preventing accidents: ELD solutions monitor driver behavior, including hard braking, acceleration, and cornering events. This data contributes to calculating a safety ranking for each driver, enabling targeted coaching for improvement. Recognizing and rewarding safe driving behavior across the fleet enhances overall safety and reduces accident risks.
Preventing vehicle breakdowns: ELDs continuously monitor trucks for fault codes, presenting the information in clear reports. This proactive approach allows companies to address potential issues before they lead to breakdowns, saving both time and money by avoiding diagnostic services at repair shops.
Enhancing asset utilization: Some ELDs provide data on vehicle utilization rates, helping companies identify underutilized trucks. This information allows for strategic decisions, such as putting trucks on the road, selling, or leasing during peak seasons.
Minimizing detention time: The FMCSA reports that detention time costs trucking companies over $3 billion annually. Certain ELDs offer Facility Insights, revealing average dwell times for delivery windows at facilities. This data aids in evaluating potential detention time before accepting a load, allowing companies to make informed decisions and mitigate financial losses.