Electronic Logging Devices

IMUA STATEMENT The Inland Marine Underwriters Association [IMUA] is a not-for-profit national trade association primarily focused on the commercial inland marine line of business. IMUA was organized in 1930 as a national trade association and rating bureau for all inland marine classes. In 1948, the rating bureau activities of the IMUA were transferred to the Inland Marine Insurance Bureau (now defunct) due to the 1944 US Supreme Court decision in the South-Eastern Underwriters Association case. Today, IMUA is comprised of Members - insurance and reinsurance companies that underwrite a significant portion of the commercial inland marine insurance in the U.S. Associate Members companies or organizations that provide products and/or services to the insurance industry. IMUA is committed to advancing the educational, governmental, regulatory and technical interests of the commercial inland marine insurance industry. One of the services IMUA provides its members is the publishing of information for use by underwriters, loss control and claims specialists, and other interested parties. The topics covered by IMUA Reports, Bulletins and News Articles are intended to provide an overall awareness of the issues, hazards and exposures associated with a specific industry or inland marine class of business. Volunteer members of a technical committee of the IMUA or IMUA staff have produced this information. Committee members abide by antitrust restrictions while compiling information. It is generally not possible to treat any one subject in an exhaustive manner, nor is it IMUA s intent to do so. No warranties are made regarding the thoroughness or accuracy of the report or any part of it. Nothing in this report should be interpreted as providing definitive guidance on any question relating to policy interpretation, underwriting practice, or any other issues in insurance coverage. IMUA does not prescribe to its members how to make underwriting or claims decisions, nor does it require that analysis follow any particular format. 2

Introduction: Note: Originally the operative term for these devices was EOBR- Electronic On Board Recorders (AOBRD or Automatic On-Board Recording Device before that starting in 1988) but this is being phased out and replaced by Electronic Logging Device or ELD. However, some other terms are being used rather interchangeably such as electronic logs, e-logs and paperless logs. The use of electronic driver logs was mandated in Moving Ahead for Progress in the 21 st Century (MAP-21), the highway funding authorization bill, approved by Congress in June 2012. The Federal Motor Carrier Safety Administration (FMCSA) is currently proposing a requirement for interstate commercial motor vehicles to have electronic logging devices. This document published on March 28, 2014 as a supplemental notice of proposed rulemaking would require use of Electronic Logging Devices by all drivers of commercial motor vehicles who are currently required to maintain a record of duty status (driver s log) to record their hours of service. The rule also details minimum performance and design standards for these devices. (Not to get too ahead of ourselves or the proposal, the ELD would have to be installed two years after the final rule has been published. The FMCSA originally floated October 25, 2015 as the target date for trucking companies and drivers to deploy electronic logging devices but it appears this will get pushed out to 2016 or even the following year.) Description: An Electronic Logging Device (ELD) tracks a driver s Hours of Service; many of these can also integrate with map and route solutions which can help drivers navigate around construction and high traffic areas. The ELD is connected directly to the truck s engine control module and can store data as well as transmit it wirelessly to the trucking company. Thus, it can produce analytical reports that can help companies and drivers manage performance more effectively, cut fuel costs, ensure timely vehicle maintenance, identify drivers that require additional training and provide real-time information that can improve customer service. Although the ELD is integrated with (hardwired to) the truck s engine, a driver s activity is logged through individual password protected log-in protocol and the activity is tracked regardless of what truck the driver uses. This is critical as some drivers switch equipment, moving somewhat seamlessly from one tractor to another. 3

The device will record the following: - Name of driver (s) - Truck/tractor number - Name and DoT number of the trucking company - Duty status - Date and time - Location of the truck - Miles driven - 24-hour period starting time - The multiday basis used by the motor carrier to compute cumulative duty hours and driving time - Hours in each duty status for the 24-hour period and total hours - Shipping document number (s) or name of shipper and commodity Since the device is also connected to the engine it can also capture and display specific operations such as, at a minimum, engine use and speed. There are no new exemptions based on vehicle or fleet size; the only vehicles and drivers excluded are short haul drivers that travel only within a 100 radius and non-cdl (Commercial Driver s License) drivers operating with a 150-miles radius. Truck-related crashes with fatalities are increasing despite the long-term effort to eliminate unsafe drivers through greater use of accident data, mandatory drug and alcohol screening and testing and related measures. In 2012 the last full year of U.S. statistics, 3,921 people died in trucking accidents representing a 3.7% increase over 2011 figures, the 3 rd straight year the numbers have been on the rise. 4

Features/Functions: An Electronic Logging Device is one that is tamper-resistant and capable of recording a driver s driving hours and duty status automatically. While different ELDs manufactured and programmed by various companies may offer different and unique features; the following must be part of the standard device: -Integral Synchronization- ELD automatically captures engine power status, vehicle motion status, miles driven and engine hours. -Recording Location Information- ELD automatically enters at each stage of duty status at 60-minute intervals while the commercial motor vehicle is in motion, at engine on and engine off instances and at beginning and end of personal use and yard moves. -Graph-Grid Display- ELD presents a graph grid of driver s daily duty status changes. -Hours of Service Advisory Messages- ELDs provide warning of unassigned driving times and miles upon login. -Driver Default Duty Status- ELD provides on-duty status query when Commercial Motor Vehicle has not been in motion for 5 consecutive minutes and driver has not responded to an ELD prompt in one minute. -Clock Time Drift- ELD is synchronized to UTC (Coordinated Universal Time, a successor to GMT or Greenwich Mean Time) with a maximum deviation at any point of 10 minutes. -Communications Methods- ELD has a primary method of wireless, Bluetooth, email or compliant printout. Resistance to Tampering- EDL does not permit alteration or erasure of original information. -Identification of Sensor Failures and Edited Data- ELD has capability to monitor its compliance (engine connectivity, timing and positioning) for detectable malfunctions and data inconsistencies and the ELD must record these occurrences. -The ELD will track truck movements but they can allow for drivers or carriers to make notations to explain or correct records. This ability to track a vehicle is not the equivalent of an anti-theft device related to cargo security. 5

Advantages: Benefits, in addition to the anticipated added safety and compliance, should accrue to both the trucking companies (motor carriers) employing the devices as well as the drivers. Motor Carrier: - Compliance o Improved CSA Safety Measurement System scores under Hours of Service, formerly called Fatigued Driving, Compliance (most common logging violations such as form and manner issues go away). A study by the Aberdeen Group asserts that ELD use increases driver compliance by 28 percent. One feature the ELD has is the ability to round up to the nearest minute, as opposed to the nearest 15-minutes as required for paper logs resulting in more available drive time. o Fewer inspections triggered by Federal Motor Carrier Safety Administration screening, exceeding Intervention Threshold or serious violation incidents. o Auditing of logs is easier - Costs (The FMCSA estimates that switch from paper logbooks to electronic deriver logs will save a trucking company $688 per driver per year) o Reduce administration of paper driver logs and supporting documentation. o Elimination of costs associated with non-compliance incidents/violations. o Report analytics can improve fleet management, cut fuel costs and allow for proactive maintenance o Simplified training for Hours of Service rule changes o The same Aberdeen Group study mentioned above found that fleets using ELDs cut operating cost by 10%, improved vehicle utilization by 13% and reduced vehicle downtime by 15 percent. There was also evidence of fuel cost savings. - Asset Utilization o Near real-time visibility of available driver hours for dispatchers. o Improved scheduling and load planning (dispatchers know location and how much time drivers have available) o Some ELDs integrate map and route solutions which can help drivers navigate around high traffic and congested areas 6

Driver: o ELDs can record engine idling times. - Data Collection o Electronic Hours of Service supporting documents o Electronic driver vehicle inspection reports o Electronic critical event data capture and reporting - Training Medium o In cab training capability o Can identify additional training needs for individual drivers - Other o In-cab navigation capability o Simplified training for Hours of Service rules and changes o Other data such as location, engine use, speed, hard braking and other information captured can be helpful in legal proceedings (this of course can be a double-edged sword) and driver disciplinary hearings o Overall road safety improvement; the FMCSA estimates that the mandated use of ELDs would prevent between 1,400 and 1,700 crashes per year, a net benefit of nearly US$400 million annually. Impaired driving, including driving while fatigued, was listed as a factor in more than 12 percent of the 129,210 total crashes that involved large trucks in 2012. o Leveling the playing field; trucking companies that constantly violate the Hours of Service rules (11 hours of driving a day up to 70 hours in a work week) for their financial or operational benefit would now be forced to comply like all their competitors. o Since these devices will be mandated they will become attractive theft targets. - Ease of Use o The EOBR system is updated for the Hours of Service rules in effect o Automatically tracks available time - Log Accuracy o There is a countdown clock for 11-hour, 14-hour and 60/70 hour limits in real time o Improved time management - Efficiency o Saves times when the driver s log activity goes paperless o Automates and simplifies paperwork with an accuracy check 7

o Roadside inspections are easier and quicker - Job Satisfaction o Lower job stress with fact-based available hours o Improved Hours of Service compliance results reflected in PSP (Pre- Employment Screening) program Disadvantages: Although as is the case with the aforementioned advantages, the downsides of using the EOBR, are not yet know but could include: a) Capital Cost- one group representing owner-operators and independent drivers estimates that the cost to procure and install electronic logging devices would cost the motor truck industry US$1.6 billion. While we have no way to refute or substantiate this claim, we do believe the devices can cost between $500 and $2,500 although the FMCSA has pegged the total cost per vehicle at $1,675. Clearly, there will be real differences in the quality and functional features between the two price extremes; however, the FMCSA has established some performance criteria (including that the device is connected or integrally synchronized to the engine so that driving time can be automatically recorded) for an accepted unit. Only devices registered with the FMCSA, these are posted on the Administration s website, are considered compliant with the requirements of the rule. Trucks that are equipped with ABORDSs that do not comply with the technical specifications have to be replaced within 4 years from the date of the final rule. b) Continuing Cost- in addition to the purchase price of these devices, there would likely be physical and technical (for example, software maintenance) expenditures needed to keep them fully functional and current. c) Productivity Loss- any mandated use of EOBRs would reduce the effective number of driver miles, adding to the tightening capacity within the industry given the limited driver pool and resulting in rising pay and higher overall fleet costs. There are other facets of any productivity loss; for one, this could require the hiring of additional drivers at a time when there is already a shortage of qualified candidates that could lead to employing ill-equipped drivers. Also, trucking companies are going to have to factor in the driving hour thresholds when determining routes with an eye toward mapping out suitable stopping/rest areas so loads can be parked in safe and secure facilities. 8

d) Privacy Issues- these data (password protected for personnel access by motor carrier and encrypted when transmitted to authorized safety officials) may not be private and accessible by motor carrier, driver or FMCSA and law enforcement only during roadside inspections, compliance reviews and postcrash investigations; also, this may well have been the impetus for the transition on the part of the FMCSA from using On Board Recorders to Data Logging devices e) Driver Harassment- this is connected to the privacy issue with the feeling that dispatchers interact with drivers and would be able to coerce drivers to operate while fatigued. The proposed rulemaking strictly prohibits that and will impose penalties for such actions. The Federal Motor Carrier Safety Administration conducted a study with results were released in November 2014 indicating that drivers who use Electronic Logging Devices instead of paper logs are more likely to experience harassment in the form of interrupted off-duty time. The report, entitled Attitudes of Truck Drivers and Carriers on the Use of Electronic Logging Devices and Driver Harassment, contains other relevant information on the subject and is available at the link noted in the References/Resources section of this paper. Note: Not really directly related to Electronic Logging Devices but more so the existing Hours of Service (HoS) regulations, is the concern for in-transit cargo security. Under the present HoS rules, drivers are mandated to take a 30-minute rest period within the first eight (8) hours. Depending on exactly when the break is taken, it could conflict with the best practice of driving for at least 4 hours or 200 miles from the point of origin without stopping as there is enough anecdotal information to suggest that cargo thieves follow loads as soon as they leave the warehouse or distribution center. Driving nonstop for that time discourages thieves from continue to tail the shipment. Outlook: It appears as if there will be government regulations requiring interstate commercial trucks to be equipped with Electronic Logging Devices (ELD) although it is difficult to guess what the final rules will say an when the rules will be effective. The independent drivers and owner-operators association (OOIDA) and like-minded groups are vigorously opposed to ELDs and are lobbying hard to stop or at least slow down the legislation. Regardless of the outcome it does seem prudent for trucking companies to purchase and install the devices as they allow for close examination of driving hours and this should have a positive effect on road safety and, by extension, cargo safety. 9

References/Resources: Please click on the links or cut and paste the links into your browser. http://eobr.com/ The website is designed to provide up-to-date information on the ELD mandate as well as technical analysis of the legislation. http://info.omnitracs.com/sem-campaigns_driverlogs-ppc-compl-multi- 0413html.html?gclid=CN-R-t2OlMECFYMF7Aodu3oALg http://www.fmcsa.dot.gov/newsroom/dot-proposes-use-electronic-logbooksimprove-efficiency-safety-commercial-bus-truck http://ntl.bts.gov/lib/54000/54100/54178/rrr-14-009- Attitudes_of_Truck_Drivers_and_Carriers_on_the_Use_of_ELDs_and_Harassment- V11-FINAL.pdf http://xrscorp.com/blog/fleet-management/eobrs-profitability-ceo/ 10