Small Trucking Firms Struggle As ELD Exemption Denied

The US has denied the ELD exemption request for small and micro trucking companies. These businesses face significant challenges, including high costs and difficulty in selecting appropriate devices. This article provides strategies to help them adapt to the new regulations and survive and thrive in the current environment. It addresses the specific burdens placed on smaller carriers by the ELD mandate and offers practical advice on navigating compliance and mitigating the financial impact.
Small Trucking Firms Struggle As ELD Exemption Denied

Imagine being a small trucking business owner who has already replaced electronic logging devices (ELDs) three times to remain compliant, yet still faces regulatory risks and mounting financial burdens. A recent decision by the Federal Motor Carrier Safety Administration (FMCSA) has compounded these challenges for many such operators.

Why Was the ELD Exemption Request Denied?

The FMCSA has rejected an exemption request from the Owner-Operator Independent Drivers Association (OOIDA) that sought relief from the ELD mandate for small trucking businesses. This decision has generated significant discussion within the industry, particularly among smaller carriers.

OOIDA argued that small businesses with proven safety records shouldn't be forced to purchase expensive, unproven equipment, requesting a five-year exemption period. "We're puzzled and disappointed by the agency's response," said OOIDA President Todd Spencer in a statement. "For months, FMCSA has been granting exemptions to other groups—some that don't even operate trucks but merely rely on trucking services."

OOIDA's Position: Advocating for Small Businesses

The association has consistently championed small trucking businesses, maintaining that the ELD mandate creates unnecessary financial strain. OOIDA emphasizes that many ELD devices are self-certified, forcing truckers to purchase and test equipment with no guarantee of compliance—an expensive proposition for small operators.

To support these businesses, OOIDA proposed that exemptions could help independent operators remain in the market. The association represents approximately 160,000 members and limited its exemption request to drivers with established safety records. OOIDA contends that temporary relief would allow ELD manufacturers more time for thorough agency review, preventing companies from facing unexpectedly high compliance costs.

The Small Business Dilemma: High Costs and Inconsistent Equipment

Small trucking companies face unique challenges with expensive compliance requirements and unreliable equipment. As one operator, Gary Harrison, commented in public filings: "As a two-truck operation, this has been a costly burden. To stay compliant, we're now on our third ELD brand... One vendor sold us a system and then went out of business without issuing refunds." Notably, the device Harrison referenced now appears on FMCSA's revoked list.

Potential Consequences: Risk of Losing Experienced Drivers

OOIDA warned in its exemption request that if the ELD mandate pushes skilled drivers out of the industry, they may be replaced by inexperienced operators more likely to be involved in crashes—undermining the regulation's safety objectives. While no clear evidence yet shows increased turnover due to ELDs, some carriers have raised wages to address capacity shortages. FMCSA has granted agricultural haulers exemptions for similar reasons, aiming to prevent disruptions to food supplies.

Industry Perspectives: Questions About ELD Effectiveness

"Several bills in Congress demonstrate clear recognition that this mandate isn't ready for prime time," said OOIDA communications director Norita Taylor, reflecting broader industry skepticism about the ELD rule's implementation.

Understanding the ELD Mandate: Impacts and Controversies

The ELD rule, implemented in December 2017, requires most commercial truck drivers to use electronic devices to record hours of service, replacing paper logs. While intended to improve safety by ensuring compliance with driving time limits, the regulation has sparked significant debate.

Challenges for Small Carriers

  • High compliance costs: Purchasing, installing, and maintaining ELDs creates substantial financial pressure for small businesses.
  • Equipment reliability issues: The market contains numerous ELD options with varying quality and compatibility.
  • Training requirements: Small operators often lack resources to provide adequate ELD training and technical support.
  • Reduced flexibility: Some drivers report that ELDs make it harder to adapt to unpredictable traffic or delivery needs.

Safety Debate

While FMCSA maintains ELDs improve safety, some industry voices argue the devices may distract drivers or encourage unsafe decisions to avoid violations. Critics suggest addressing root causes of fatigue—like unrealistic schedules and low pay—would be more effective than ELD mandates.

Adaptation Strategies for Small Businesses

To navigate ELD requirements, small trucking companies should consider:

  1. Careful ELD selection: Research devices thoroughly, verify compatibility, and seek expert recommendations.
  2. Operational optimization: Review scheduling practices, improve route efficiency, and communicate with customers about ELD impacts.
  3. Training investment: Provide comprehensive ELD instruction and ongoing technical support for drivers.
  4. Industry engagement: Participate in trade associations and policy discussions about ELD implementation.
  5. Government assistance: Explore potential aid programs for small businesses facing ELD compliance costs.

Conclusion: Balancing Challenges and Opportunities

While the ELD mandate presents difficulties for small trucking businesses, it also offers opportunities to enhance operational efficiency and safety. Through strategic adaptation—including careful technology selection, process improvements, and workforce training—small carriers can successfully meet compliance requirements. Industry groups and regulators should continue addressing small business concerns to support the sector's long-term health.