THREE MINUTES TO MIDNIGHT. A New Day Dawns for Trucking And Transportation with the Electronic Logging Device Mandate

Transcription

1 THREE MINUTES TO MIDNIGHT A New Day Dawns for Trucking And Transportation with the Electronic Logging Device Mandate

2 MEET OUR PANELISTS John Seidl, Transportation Consultant, Integrated Risk Solutions (former FMCSA motor carrier inspector, state motor carrier inspector, involved in this since the EOBR days). Eric Lien, Senior Vice President, Corporate Development, Arrive Logistics (a fast-growing Austin-based 3PL that has been feverishly educating shippers on ELD issues)

3 PANELISTS Thayne Boren, general manager, Truckstop.com (very informed on carrier, owner-operator adoption rates, based on Truckstop.com spot market surveys). Norm Ellis, president, EROAD Inc. (former Qualcomm, Omnitracs executive, now with an ELD maker).

4 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT November 8 th 2017 Journal of Commerce Inland Convention Atlanta Georgia Thank you for inviting me My Name is Mark Willis-The host of this presentation

5 40 YEARS I have been in the News Media for more than 40 years I am currently a news anchor and reporter for Sirius XM Satellite Radio-Host of Road Dog Trucking News heard live each day by 1.2 million people. Trucking, Transportation, Energy, Maritime, Rail, Aviation. All of these are connected to trucking If it has wheels, floats or is in the air, I try and cover it

6 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT EFFECTIVE COMPLIANCE DATE DEC. 18, 2017 WHO MUST COMPLY? LEGISLATIVE & REGULATORY ADOPTION PROCESS LEGAL & LEGISLATIVE ATTEMPTS TO DELAY EXEMPTIONS SELECTING AN ELD BUYER BEWARE ROADSIDE ENFORCEMENT OWNER-OPERATORS

7 ELECTRONIC LOGGING DEVICE WORKSHOP WHO MUST COMPLY? The ELD rule applies to most motor carriers and drivers who are currently required to maintain records of duty status (RODS) per Part 395, 49 CFR 395.8(a). The rule applies to commercial buses as well as trucks* and to Canada- and Mexico-domiciled drivers. Interstate v. intrastate HOS regulations states have until Dec to adopt compatible regulation for their intrastate only market Switching between state & federal hours-of-service: It is permitted. *A CMV defined as greater than 10,001 pounds

8 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT--LEGISLATIVE HISTORY The mandate was contained in the highway bill named Moving Ahead for Progress in the 21st Century Act (MAP-21) signed into law by President Obama on July 6, Specifically, SEC of MAP-21 contains the congressional mandate for ELD use Congressional adoption efforts were tied to the fact that the US Court of Appeals for the Seventh Circuit vacated the original ELD rulemaking (2010) in August 2011

9 REGULATORY HISTORY In April of 2010 FMCSA issued its first rule mandating ELD s. Called the bad actor mandate because only those shown to have a history of logging violations (log falsification rate greater than ten percent) during a federal compliance review (CR) would have been required to install ELD s. February 2012, FMCSA published a SNPRM that reestablished the technical specifications for ELD s eliminated by the 7th Circuits vacatur of the Bad Actor rulemaking. Driver harassment also addressed in SNPRM

10 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT LEGAL & LEGISLATIVE ATTEMPTS TO DELAY OOIDA I v. US DOT OOIDA II v. US DOT H.R ELD Extension Act of 2017 introduced by U.S. Representative Brian Babin [R-TX-36]

11 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT- LEGAL CHALLENGES The Bad Actor rulemaking was challenged by the Owner-Operator Independent Drivers Association (OOIDA). In June of 2010 OOIDA petitioned the 7th Circuit in Chicago to review the final rule published by FMCSA on April 5, In August of 2011 the Seventh Circuit ruled in favor of OOIDA and vacated the entire rule. The basis of the Seventh s decision was narrowly focused on the issue of driver harassment and FMCSA not appropriately addressing this issue in its final rule

12 ELECTRONIC LOGGING DEVICE WORKSHOP-THREE MINUTES TO MIDNIGHT--LEGAL CHALLENGES The final rule published in December of 2015 was legally challenged within days again by OOIDA in the 7 th. In October of 2016 the 7 th unanimously rejected OOIDA s arguments and allowed the final rule to stand. A rehearing was denied and OOIDA petitioned the U.S. Supreme Court to hear their appeal from the 7th in April of this year.

13 ELECTRONIC LOGGING DEVICE THREE MINUTES TO MIDNIGHT--LEGAL CHALLENGES On June 9, 2017, the US Supreme Court refused to hear OOIDA s legal challenge

14 ELECTRONIC LOGGING DEVICE THREE MINUTES TO MIDNIGHT--LEGAL CHALLENGES LEGISLATIVE ATTEMPT TO DELAY H.R ELD Extension Act of 2017 Introduce by Rep. Brian Babin {R-TX-36}, currently has 59 co-sponsors. House T & I has oversight This bill delays for an additional two years the effective date of regulations implementing the requirement that a commercial motor vehicle involved in interstate commerce and operated by a driver subject to federal hours of service (HOS) and record of duty status regulations be equipped with an electronic logging device to improve vehicle operator compliance with HOS regulations.

15 ELECTRONIC LOGGING DEVICE THREE MINUTES TO MIDNIGHT--EXEMPTIONS Automated Onboard Recording Devices (AOBRD s) installed before Dec. 18, 2017 can be used till Dec. 16, 2019 Drivers who operate under the short-haul exceptions may continue using timecards/timesheets Drivers who use paper RODS for not more than 8 days in any rolling 30-day period Drivers who conduct drive-away-tow-away operations, in which the vehicle being driven is the commodity being delivered

16 ELECTRONIC LOGGING DEVICE WORKSHOP- THREE MINUTES TO MIDNIGHT--EXEMPTIONS What if a driver exceeds the limitations for the shorthaul exemption, what is the current requirement? DOT interpretations of (Question #21) and (Question #20) The driver must only produce a paper log for the day they did not qualify for the exemption. They are not required to produce the previous 7-days of logs

17 ELECTRONIC LOGGING DEVICE WORKSHOP- THREE MINUTES TO MIDNIGHT--EXEMPTIONS Motor carriers must retain up to eight supporting documents for every 24-hour period that a driver is on duty. Drivers must submit their records of duty status (RODS) and supporting documents to the motor carrier no later than 13 days after receiving them. If a motor carrier retains more than 8 supporting documents, the motor carrier must maintain the first and last document generated during the regular course of business.

18 ELECTRONIC LOGGING DEVICE WORKSHOP-THREE MINUTES TO MIDNIGHT RECORD KEEPING Bills of lading, itineraries, schedules, or equivalent documents that show the starting and ending location for each trip; Dispatch records, trip records, or equivalent documents; Expense receipts related to on-duty/not driving periods -meals, lodging, fuel, etc. Fleet management system communication records; Payroll records, settlement sheets, or equivalent

19 ELECTRONIC LOGGING DEVICE WORKSHOP- THREE MINUTES TO MIDNIGHT What is an ELD? An ELD synchronizes with a vehicle s engine to automatically record driving time, for easier, more accurate hours of service (HOS) recording: Specifies who is covered by the rule and the rule s exceptions Provides for ELDS to be certified, registered, and listed on a Federal Motor Carrier Safety Administration (FMCSA) website

20 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT What is an ELD? Includes technical specifications to ensure ELDs are standardized and compliant Has a phased implementation timeline to give carriers and drivers time to comply

21 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT ELD Includes provisions to help prevent data tampering and harassment of drivers Requires standard data displays (screen) and a data transfer process, making it easier to demonstrate compliance and faster to share Record of Duty Status (RODS) with safety officials

22 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT Who is impacted by the ELD rule? Drivers: Understand and be able to use ELDs Know how to annotate, edit, and certify RODS Prepared to collect required supporting documents Know how to display and transfer data to safety officials when requested

23 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT ELD Implementation Phase 1 Awareness and Transition December 16, 2015 to December 17, 2017 Carriers and drivers subject to the rule should prepare to comply, and may voluntarily use ELDs Carriers and drivers subject to the rule can use any of the following for RODS: Paper logs Devices with installed logging software and applications Automatic On Board Recording Devices (AOBRD) ELDs that are registered and listed on the FMCSA website

24 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT ELD Implementation Phase 2 - Phased-In Compliance December 18, 2017 to December 15, 2019 Carriers and drivers subject to the rule can use: AOBRDS that were purchased prior to December 18, 2017 Certified and registered ELDs, following rule publication

25 ELD Duty Status Categories Driving An ELD automatically switches to driving status once the vehicle is moving at a speed of no more than five miles per hour On-Duty, Not Driving When the vehicle has not been in motion for five consecutive minutes, the ELD will prompt the driver to confirm driving status or enter the proper status. If the driver doesn t respond within one minute, the ELD will automatically switch to on-duty, not driving Off-Duty The driver should indicate off-duty status, or must edit and annotate the RODS later. Periods of authorized personal use may also be considered offduty time Sleeper Berth The driver should indicate sleeper berth status, for sleeper berth periods, or must edit and annotate the RODS later

26 WHERE ARE WE NOW? What is this going to mean to the trucking and transportation industry? What will this mean for the rates? What will this mean for capacity? WHAT WILL THIS MEAN FOR THE SHIPPER AND CONSINGEE? There are some big changes coming which will totally change the landscape

27 THE TRUCKING INDUSTRY HAS A MESSAGE FOR THE SHIPPERS Chris Spear is the President of the American Trucking Industry. He has been a frequent guest on my program. He has a message for the shipping industry.

28 DISCUSSION

29 ELECTRONIC LOGGING DEVICE-THREE MINUTES TO MIDNIGHT QUESTION AND ANSWERS??

30 TODD SPENCER EXECUTIVE VICE PRESIDENT OF OOIDA

31 How Shippers Could Help Offset the Impacts of the ELD Mandate Adjust Expectations of Transit Times With the ELD mandate in place, shippers may see an increase in the amount of time it takes to get a shipment from origin to destination, as Hours of Service (HOS) restrictions will be more effectively enforced. Drivers may find themselves sitting with a full load awaiting a reset to their HOS. In addition, carriers and shippers alike must be sure their transit expectations align with legal driving hours. Asking drivers to exceed legal requirements could be considered driver coercion, according to the Federal Motor Carrier Safety Administration.

32 How Shippers Could Help Offset the Impacts of the ELD Mandate Expect Price Increases Immediately following the December 18, 2017 compliance date, freight capacity may shrink due to the number of carriers who either cannot, or will not, comply with the ELD mandate. Of course, when capacity shrinks, prices increase. The exact percentage of anticipated increase is unknown, but shippers should be prepared to pay more based on limited capacity

33 How Shippers Could Help Offset the Impacts of the ELD Mandate Streamline Operations to Maximize Driving Time Shippers can help offset the capacity shortage brought on by the ELD mandate by utilizing best practices when working with carriers. In a white paper titled 660 Minutes: How Improving Driver Efficiency Increases Capacity, J.B. Hunt offers suggestions for streamlining operations in order to shorten the amount of time drivers spend on duty, but not driving. These include: Reducing loading/unloading times Utilizing drop & hook vs. live loading Using flexible pickup and delivery times Creating safe, legal parking at pickup/delivery locations

34 How Shippers Could Help Offset the Impacts of the ELD Mandate From JB HUNT Be proactive with the carriers If you do business through a third-party logistics company (3PL), the 3PL should assess which of its contracted carriers utilize ELDs or have a transition plan in place. The 3PL should be proactive about ensuring its contracted carriers are preparing for the change. In general, companies that choose to adopt the technology later than others will experience an adjustment period that could lead to a loss of productivity. To avoid any break in operations due to last-minute implementation of ELDs, begin a dialogue with your transportation providers about their ELD compliance plans as early as possible

35 FACEBOOK MESSAGES Scott Staley Provide parking if we run out of hours and are unable to move legally. Be efficient in loading/unloading process..consider expansion of shipping hours...understand the issue and be an advocate (its in your best interest too) not an adversary Glenn Kuehne Coordinate hours for shippers and receivers to keep us productive and save money. I reject a lot of loads because they are set up to pick up one morning and deliver later the next afternoon for a 300 mile load. Too much time on one load unless you want to pay for two whole days.

36 QUESTIONS AND WRAP UP?