building your eld strategy

BUILD YOUR ELD STRATEGY

A review of current regulatory and compliance issues that will impact your

business.

November 15, 2016


Master of Ceremony

Ron Nunes - HNI

To Our Sponsors: Thank You!


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.



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”


Insurance & ELD’s

Edward BassTravelers

Observations

• What we are seeing• Hours of Service – CSA

• Administrative time

• Utilization of ELD in transportation safety management process

Hours of Service Property

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.


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.



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


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


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


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


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.


Technical Overview

Marc LonsonSean MeisterM2M in Motion

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?

Closed Systems

Open Systems

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.


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.


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!


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


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.

Questions?

THANK YOU!

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