ELD Exemption for Small Carriers Introduced in U.S. House
If you know nothing about the recent ELD mandate, don’t worry – it’s not something that affects most people. But a proposed ELD exemption for small carriers could seriously impact the auto shipping industry, which is why we’re covering it today. We don’t normally talk politics here, but this subject is an important one for the auto transportation industry.
An ELD is an electronic logging device – basically, a computerized logbook for carriers. Congress passed a bill a few years back that required all freight haulers to install ELD devices in their trucks by the end of 2017.
So far, the implementation of ELD’s has been troublesome. And now, several congressmen – from both sides of the aisle, actually – want to exempt small carriers from the ELD requirement.
How an ELD exemption for small carriers could impact car transport prices, services
The proposed bill would exempt small carriers – i.e., companies with less than 10 trucks – from having to use an ELD. This includes single-truck owner-operators, which are pretty prominent in the auto transport industry. And while the bill hasn’t passed yet – and would still need to pass in the Senate, and be signed into law by the President – it’s still fun to speculate. Also, the ELD is a big thing in the trucking world, so it’s important to know how it will affect you, the customer.
Exempting small companies from ELD compliance ends up saving both the company and you money. Current ELD devices are expensive, and come with software that typically requires subscriptions or maintenance. And those too cost money. With independent owner-operators, that’s actually problematic, and could result in higher prices for you.
So removing the ELD compliance mandate from small companies could result in lower prices.
It could also result in better transit times. Let’s face it – a big reason that the ELD mandate was put into effect was because of HoS violations – Hours of Service, that is. Carriers fudge their numbers so they can drive further during a day. Not all do, but it was a common-enough practice that the ELD became a requirement. Removing that could result in carriers going further again, which would decrease transit times.
The broader implications of the ELD exemption for small carriers
So, theorycrafting a bit here, one could argue that, to get under the ELD exemption, trucking companies could split up and get smaller. This probably won’t happen – but it’d be crazy if it did!
More importantly, though, an ELD exemption for small carriers could set precedent for future exemptions. And the rollout of the ELD mandate has been marred by missteps and complaints already. If this passes, we could see more exemptions coming in the near future.
But for now, the most pressing concern for customers is how an ELD exemption would affect their prices and services. And the exemption could give smaller carriers an edge in pricing, which could result in more loads going to small truckers.
It could also increase the number of owner-operators in the auto transport industry, which would help. Right now, auto transport prices are higher than in years past due to a lack of carriers. So those that are operating can set their prices higher since there’s less competition along major routes. If OTR truckers that already have their licenses are looking to save money, they could get into the auto transport industry as an independent.
Use American Auto Shipping for all your auto transport needs
We don’t know what will happen. But you can rest assured that we’re keeping an eye on the news and will provide updates on the ELD mandate exemptions as they unfold. If you’re interested in shipping a vehicle, go American Auto Shipping. Fill out our free quote form or give us a call at 800-930-7417 for a free, no-hassle, comprehensive auto transportation quote. You can also call and speak to an agent, who can answer questions, get you a quote, and help you ship your vehicle wherever you need it shipped. Don’t delay – use American Auto Shipping today.