How Eld Devices Affect in Car & Trucking Industry

by SpeedLux
Eld Devices

FMCSA made Electronic Logging Devices (ELDs) mandatory to significantly enhance truckers’ compliance with the HOS or hours of service. Since this rule was made, almost 65% of truck companies complied with it, and this percentage is continuously increasing. ELDs are pretty helpful, and drivers reap the significant benefits of ELDs as they can easily observe location, hours of work, and distance traveled. 

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Truck driving is hectic, but an ELD helps make it stress-free. When drivers are aware of all the factors mentioned above, they can simply focus on driving without having to stress about logging hours. Not only drivers but both trucking and shipping industries are affected by ELDs. It helps them in increasing their efficiency. This has led to stakeholders thinking about using ELDs for cargo ships as well. 

Major world economies have already completely adopted electronic logging while many developing countries are taking preliminary actions in this regard. However, while large automotive industries benefited from electronic logging systems, small trucking companies faced some issues after the ELD mandate.

Significant benefits that ELD has provided are:

  • Work Efficiency

Before ELDs, paperwork and logging took a long time, but electronic logging saves uptime, which increases truckers’ productivity. According to a study, 3 to 5% of the trucking industry and 6 to 10% of the productivity of the car industry can be increased by using ELDs. 

  • Cost Reduction

Shifting from paperwork to electronic logging saves up to $1.5 billion every year. Additionally, less fuel will be consumed due to proper logging, conserving more money. Although the initial price of an ELD is relatively high, the initial high price is not a problem once you count the savings. The KeepTruckin app has many cost-effective plans for ELD buyers.

  • Protection and Wellbeing

FMCSA also claims that major accidents and injuries are reduced due to the use of ELD because drivers are less tired while logging hours of service. The safety and well-being of drivers were one of the main reasons why electronic logging was declared mandatory.

How ELD Affected Small Trucking Companies

Where there were benefits, there were some issues related to the ELD mandate as well. For example, large trucking companies were positively affected by electronic logging when ELDs were made mandatory. On the other hand, many small trucking companies were not in agreement. These companies objected that they had to pay for the initial high price of ELDs and also had privacy concerns. 

In addition, after it is up and running, ELD saves time and money, but a small company cannot pay the initial fee and the added monthly fee because their budget margins are not too flexible. Due to this reason, many drivers left work, and it became hard for companies to find experienced truck drivers. As a result, the trucking industry was also affected majorly. Text

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Consequently, the average loss to shipping companies is estimated to be about 250,000-300,000 automotive in the near future. This may also cause a shortage of trucks, raising the cargo rates. Currently, the car industry is exempted from the ELD mandate, and as a result, they are not affected by FMCSA regulations about electronic logging.

Putting it all together

Since the ELD mandate by major economies of the world, the fleet industry has benefited from electronic logging. These benefits include cost reduction, efficiency, productivity, and the well-being of drivers. However, small enterprises have been negatively affected by this mandate. This has led to drivers leaving their jobs because shifting from paper to electronic logging has been costly. As a result, the trucking industry has to bear a shortage of professional drivers and trucks.

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SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.


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