Monthly Archives: October 2017

Electronic Logging Device (ELD) Guide for Drivers

ELD guide

As of December 18, 2017, trucking companies will be required to use E-logs. With an average cost of $495 per year, that’s an expense that will now need to be part of your budget. All commercial motor vehicle drivers will need to comply with the Federal Motor Carrier Safety Administration’s ELD Mandate.

What is the ELD Mandate?

This rule was established to improve commercial vehicle safety and reduce overall paperwork for both motor carriers and drivers. Annually, the FMCSA estimates 1,844 crashes could be avoided, with 26 lives saved after the new E-log devices are in place. E-logs are also designed to prevent driver harassment by employers, deterring carriers from attempting to force ill or fatigued drivers out on the road.

ELD Requirements

  • ELDs must be used by commercial drivers who are required to prepare hours-of-service (HOS) records of duty status (RODS).
  • ELDs must be certified and registered with FMCSA.
  • Drivers and carriers must keep specific supporting documents.
  • Drivers are not to be harassed over ELD data – this data may actually back up claims of drivers who believe they have been harassed.

Limited Exceptions

  • If you’re a driver who operates under the short-haul exceptions, you may continue using timecards. Because you aren’t required to keep RODS, you won’t need to use ELDs.
  • If you’re a driver who uses paper RODS for not more than 8 days out of every 30-day period, you won’t need an ELD.
  • If you’re a driver who conducts drive-away-tow-away operations, an ELD isn’t required.
  • If you drive vehicles manufactured before 2000, an ELD isn’t needed (it requires synchronization with the electronic control module, which isn’t possible in older trucks).

Your ELD is Required to:

Automatically record date, time, location information, engine hours, vehicle miles and identification information for you, the carrier, and your vehicle.

  • Record all information at least hourly when the vehicle is in motion.
  • Record all of the elements changes in duty status
  • Record changes to a special driving category, such as a yard move.

Drawbacks to the ELD Requirement

The major drawback to the ELD requirement is the anticipated loss of productivity for drivers. Being micromanaged by the FMCSA will most likely result in less miles being driven by each driver, which will drive up costs and slow down delivery times. Additionally, small trucking companies with fewer resources will get hit hard with the upfront cost of the ELD as well as the monthly subscription cost that comes along with it. Furthermore, as the regulations are currently written, drivers have very little flexibility in bending the hours of service rules without being penalized. Many trucking companies are claiming that this rule may actually cause more accidents, since drivers will be forced to stay off the road even if they are not tired. This may result in truckers driving at other times when they actually may be fatigued.

The new regulations can be confusing, but if you stay informed, you can stay on top of the requirements and avoid complications. For more information, visit the FMCSA’s FAQ at: https://www.fmcsa.dot.gov/hours-service/elds/faqs

 

how to fix cash flow problems

How to Fix Cash Flow Problems for Truckers

We know how difficult it can be to keep your trucking business running while waiting for customers to pay you. Your business needs cash flow for fuel, truck maintenance, insurance, and more, but getting timely payments from customers is often a real thorn in your side. For a trucking company of any size, you may want to know how to fix cash flow problems to eliminate a huge weight on your shoulders.

When customers don’t pay you on time – or at all —it can put your business in jeopardy. This is why invoice factoring is a common practice in our industry. When you factor an invoice, you essentially sell it to the factoring company at a discounted rate in exchange for immediate payment. Hopefully, that’s where the story ends, but as you have probably experienced, that’s not always the case.

Sorting Out Factoring

When people talk about factoring, they could mean one of two types:  recourse or non-recourse. Most factoring companies focus on recourse factoring, where truckers are liable for invoices when customers don’t pay. If factored invoices get paid on time, you can breathe a sigh of relief. However, when an invoice doesn’t get paid within a certain number of days, the factoring company will charge you back for full payment…sometimes even months later.

The other type of factoring is non-recourse. This means that the factoring company who purchased the invoice from you assumes the risk if it goes unpaid due to customer bankruptcy, fraud, or delinquency. So if the customer takes a long time to pay – or doesn’t pay at all – those invoices won’t come back to bite you. The factoring company assumes all the risk.

What About Rates and Collections?

Non-recourse factoring gets you off the hook for collections. Rather than spending resources trying to collect payment for factored invoices, you simply let the factoring company take care of it. And while the rates for non-recourse factoring might be a little higher upfront, the reduced risk, combined with no need for collections could make non-recourse factoring well worth the cost.

Cash Advance For Truckers

Managing your cash flow in the trucking business is no easy task. But understanding the difference between recourse and non-recourse factoring can help you make the right decision for your needs, so you can get back on the road and focus on what you do best…managing your trucking business.