Imposing IoT adoption by governmental mandate is a concept that has spanned geographies and verticals, whether it's better monitoring water usage in draught-plagued Californian farms through flow sensors (California Bill 88), or enabling pharmaceutical supply chain compliance with track and trace serialization technology.
The 451 Take
What is the mandate?
Specifically, the mandate seeks to replace this historically paper-intensive, unorganized and unenforceable process to ensure that drivers are taking rest breaks and limit consecutive hours spent driving. The mandate didn't officially pass until December 2015, even though it was part of Moving Ahead for Progress in the 21st Century Bill (MAP-21), which was enacted in 2012. The FMCSA outlines certain grace and transition periods for adoption over the next few years. Below is a timeline of these projected phases:
- Phase 1: Awareness and Transition – The one-year period beginning February 16, 2016, and ending December 18, 2017, where trucking operators can voluntarily use ELDs, but will not be fined for using automatic onboard recording devices (AOBRD) and/or paper logs.
- Phase 2: Phased-In Compliance – Beginning on December 18, 2017, and ending December 16, 2019, the mandate requires that operators have an installed
ELD,unless they have previously (before December 2017) installed an AOBRD. Equally important, the FMCSA specified a 'grace period' that ended April 1, 2018, which now allows FMCSA and DOT enforcement officers to formally assess fines.
- Phase 3: Full Compliance – After December 16, 2019, only registered ELDs are permitted to be used in the US.
What is an Electronic Logging Device?
There are several rules-based features that must be automated, such as an ELD only recording the driver as 'driving' if the vehicle is traveling over five miles per hour. These pieces of telematics hardware are typically aftermarket devices bolted onto commercial vehicles and can include OBD II dongles, GPS devices, tablets and other BYODs, equipped with various forms of connectivity (BLE, Wi-Fi, cellular) and vehicle configurations to the ECM (standard, heavy-duty, 6-pin, 9-pin) as well as integrations with other in-vehicle devices.
Typically there is a cloud-based fleet management platform implemented for presenting this real-time data for fleet administers and dispatchers. Other compliance-relevant features usually bundled into ELD packages include Driver Vehicle Inspection Reports (DVIR) and International Fuel Tax Agreement (IFTA) reports.
What are the rules?
A driver will be tracking four different 'duty statuses' (driving, on-duty not driving, off-duty, sleeper berth), each of which has its own set of hourly, daily and weekly rule implications. For example, a truck operator can drive no more than 11 hours after 10 uninterrupted hours of being 'off duty' and can also have a maximum of a 14-hour day of being 'on duty' (which can occur when combining driving and on-duty operations such as yard moves).
A driver also must take a 30-minute break before recording eight consecutive hours of being on duty, and cannot drive after incurring 60/70 on-duty hours for seven/eight straight days. The motor carrier must retain and back up ELD data on a driver-by-driver basis for six months. Then there are even special recording cases for personal use, yard moves, adverse operations (weather, accident, etc.) or even 'oilfield operations.'
As mentioned, there is an equally exhaustive list of rules on the telematics device side as well. The main technological themes (and potential points of differentiation for telematics providers) are around data, reliability, connectivity, transmission
Who must comply?
There has been much debate on
Fleet management M&A leading up to ELD mandate (December 2017)
There have also been a few notable investments in promising fleet management and ELD startups. KeepTruckin recently closed its $50m series C funding round, which brought total venture funding to $78m.
Sumeru Equity Partners took a majority stake in Azuga in April 2018. Samsara is mostly focused on applying intelligence to the semi-trailer, but does have an ELD offering (Samsara Driver App) and has obtained $130m in total venture funding since being founded in 2015.
This driver pushback element grows in concern as an influx of drivers are approaching the retirement age (average age of OOIDA members is 55), which presents a haunting problem with the impending driver shortage in North America. In part two, we will dissect these societal and behavioral trends with analysis of how some of the more than 370 FMCSA-registered
David Immerman is an Associate Analyst in 451 Research’s Internet of Things (IoT) Channel. He covers the smart transportation space and its various segments, including but not limited to fleet management, telematics, connected cars and autonomous vehicles.
As Research Director of 451 Research's Internet of Things practice, Christian Renaud covers the ongoing virtualization and digitization of the physical world around us. For 25 years prior to joining 451 Research, Christian built nationwide networks at large and small enterprises, worked with Fortune 50 companies in the systems integrator channel, built products at Cisco Systems and ran the company's New Markets and Technologies team.