U.S. ELD Loopholes Fueling Fraud, Driving Good Carriers Out of Business, Experts Warn

The U.S. trucking industry is confronting what multiple fleet executives call a systemic failure in electronic logging device (ELD) oversight, driven by a regulatory framework that allows ELD manufacturers to self-certify their compliance with federal hours-of-service rules. 

The lack of oversight by FMCSA on electronic logbook providers has enabled a shadow market of devices that allow companies to edit driver logs regularly, which allows fleets to drive long past the established hours-of-service regulations.

“The only compliance necessary to create an e-Log is for the e-Log creator to just check a box saying “self-certifying” that the e-Log will follow the rules; there’s no government oversight here,” said Zach Meiborg, president of Meiborg Trucking in Rockford, Illinois and 25-year industry veteran. “There’s no certification process. And because of that, the market has been flooded with ELDs that allow logbook edits. It’s widespread and has caused the glut of capacity of illegal operators.”

Meiborg calls the result a “two-platform trucking market” – compliant fleets that run 2,000 to 2,500 miles per week, and fleets that use manipulated ELD logs to run 4,000 to 5,000 miles.

“Remember the cost per mile decreases with every additional mile a truck runs, because you can dilute your overhead and fixed costs,” Meiborg added.

“These illegal operators are running around at a cost of $1.80 per mile, while the compliant fleets are operating in the $2.30 per mile range. Those cost differences are reshaping which carriers win freight – and which close.

“Good, legacy fleets – 40-year companies – are shutting down,” Meiborg said. “Meanwhile, the fleets running illegal logs are expanding.”

Read more in an article from FreightWaves.