Canadian ELD Coming Soon but with Progressive Enforcement

Transport Canada announced the final details of a new Electronic Logging Device (ELD) mandate, which will come into force on June 12, 2021. Despite the Canadian government initially offering no “grandfather” or “soft enforcement” period, it has now announced there will be a 12-month progressive enforcement period to help ease existing pressures from COVID-19. The mandate requires vehicle drivers currently keeping a Record of Duty Status (RODS) to switch from paper logbooks to ELDs. Current Hours of Service (HOS) regulations will not be affected, but the new regulation will help monitor and improve driver compliance.

The mandate will affect around 150,000 commercial vehicles in Canada, with another 50,000 expected to be on the road by 2028. About half of these vehicles travel to the United States and so already have ELDs. However, they will still need to ensure their device is compliant with the Canadian mandate because it includes additional requirements and needs to comply with Canadian HOS regulations. Similarly, commercial vehicles from the United States will also need to comply with the new Canadian mandate. As in the United States, the Canadian mandate seeks to reduce driver fatigue and road accidents. Research from the DOT shows that trucks equipped with ELDs experienced a 12% reduction in crashes, 53% lower driving-related HOS violation rate, and 49% lower non-driving-related HOS violation rate.

The Private Motor Truck Council of Canada had been pushing for a phased-in enforcement because fleets are already facing pressures from COVID-19, and there are currently no independently third-party certified devices. While U.S. ELD providers could self-certify, Canadian providers must go through a third-party certification process. Quebec-based FPInnovations is currently the only government-approved ELD certifying body. The delayed enforcement will give ELD suppliers time to prepare and apply for certification, which will offer fleets a broader choice of approved and compliant providers. Transport Canada has committed to developing a “meaningful and gradual” enforcement strategy, which will begin with education and awareness.

The long-term benefits of ELDs are extensive for both larger and smaller carriers; however, the economic feasibility can be a challenge. The combined upfront costs and continued payments for maintenance are significant and will likely place a heavy burden on smaller carriers. Fines for non-compliance will also place financial pressure on fleets, with penalties exceeding US$10,000 and vehicles facing potential out-of-service orders. Smaller ELD suppliers are likely to struggle due to the costs associated with the certification process. Every ELD needs to be certified and costs will be between US$40,000 to US$60,000 for a single device. On top of that, 25% of ELDs need to be retested annually, costing suppliers an additional US$12,000 to US$25,000. These costs present increased potential for smaller carriers and ELD suppliers to go out of business.

However, costs for fleets could be minimized because the Canadian mandate allows providers to update their devices through Over-the-Air (OTA) software updates, rather than replacing the entire unit. Many suppliers, including Omnitracs, are planning OTA updates to their devices that will be certified in Canada. This will help ease the transition by offering a more time- and cost-effective way to achieve compliance.

With full enforcement now beginning in June 2022, fleets can be more relaxed in their preparations for meeting new ELD requirements. However, the Canadian Trucking Alliance has suggested that carriers not delay preparations and attempt to implement a compliant ELD solution by June 2021, if possible. Carriers with ERDs are advised to immediately check with their current supplier to see if ELD requirements are needed.

Fleets travelling between the United States and Canada will need to choose ELDs that are compliant with both countries’ standards. In particular, U.S. fleets travelling to Canada must be aware that self-certified ELD devices are not compliant. They must ensure their providers will be third-party certified and comply with all technical requirements of the Canadian ruleset. It is believed that only 10% to 15% of U.S. ELD suppliers will attempt to certify in Canada, leaving 25 to 50 devices potentially certified in the early stages.