Ever since the Electronic Logging Devices became mandated by regulatory bodies like FMCSA, companies have tried to overcome the initial irritation of having to comply with finding strategies that would use them for the business. In this article, we explore what ELDs are, how they work, what options companies have, and how to maximize the benefits.
What are ELDs and why is an electronic logging device becoming a must for compliance?
ELD, standing for Electronic Logging Device, is a digital system that can synchronize with the vehicle’s engine and automatically record data about when the vehicle is moving or when the engine is working, among other things – ultimately boiling down to recording the hours of service (HOS). It’s the next stage of logging evolutions after papers and the so-called AOBRDS (automatic on-board recording devices), being more tamper-proof and accurate.
The notion of hours of service became legally relevant in the regulatory effort to reduce accidents and enforce better regulations, under what is now known as the ELD mandate by the FMCSA (Federal Motor Carrier Safety Administration) as part of the MAP-21 (in full, the Moving Ahead for Progress in the 21st Century Act), enforced in 2019. Under this regulation, most commercial motor vehicles in the US are to use ELDs approved by FMCSA, thus narrowing the window of fraud possibilities and enhancing road safety.
It covers long-haul truckers, passenger vehicles, and hazardous materials, with some exceptions among CMVs, too, like short-haul drivers within a 150-mile radius, pre-2000 vehicles, and certain driveaway-towaway operations. For most, though, the ELD mandate is the unavoidable reality.
However, it’s also good for multiple reasons, since compliance with HOS rules (11 hours/day within a 14-hour shift, a 10-hour off-duty period in between) is getting easier through automation. Meanwhile, HOS violations can be quite consequential, leading to fines up to $10,000 per violation during FMCSA roadside inspections. With ELD, drivers can share logs instantly via wireless, USB, Bluetooth, or simply by showing the device display, which speeds up inspections.
How do ELDs work?
An ELD integrates with the vehicle’s ECM (engine control module), meaning it doesn’t need manual input for the most important data and pulls it all directly from the vehicle instead. For example, FMCSA-approved ELDs will automatically update the status every 60 minutes, with the “on” threshold being 5mph, and the “off duty” mode registered after 3 seconds of 0mph.
The data that’s captured is automatically transmitted to the onboard display or mobile app, while some optional data is entered manually. Fleet managers, then, can also access the data via a cloud-based fleet management platform.
How do ELDs transmit data, and what data is that?
ELDs can potentially collect a lot of different types of data, but are mostly required to report what’s relevant for HOS. Strictly speaking, they are not required to collect data on vehicle performance, but as they are in place anyway, companies often opt for ELDs that can provide that, too.
The most critical data points for ELDs include:
- Driving time & duty status – The device automatically records when a driver is on duty, driving, on break, or off duty, ensuring compliance with HOS limits.
- Vehicle movement & GPS location – The system logs when the vehicle is in motion and provides GPS-based location updates every 60 minutes, as well as at key events such as engine start/stop.
- Engine hours & ignition status – Tracks when the engine is running, helping to verify total driving hours and prevent unauthorized use.
- Miles driven – Records the exact distance traveled, ensuring accurate fuel tax reporting (IFTA compliance).
- Driver ID / authentication – Logs who is operating the vehicle at any given time, ensuring accountability.
- Malfunction & diagnostic alerts – ELDs monitor for system errors or tampering attempts and alert drivers and fleet managers accordingly.
Most data is recorded automatically, but of course, there are still entries that need to be made manually by the driver, like switching to On Duty status without driving, etc.
During roadside inspections, drivers can retrieve and transmit ELD data via wireless transfer, USB, Bluetooth or simply by showing the screen display.
The types of ELD and available options
To be compliant, ELDs need to be approved by the FMCSA, which is, they need to be able to capture the required data and meet several specifications. On top of that, however, there can be different exact technical implementations, like hardware setup, and additional features.
This is where the difference between the different types of ELDs comes into play, such as the basic, compliance-oriented and advanced ELDs. The basic ones are made to only meet the FMCSA requirements, which are mostly about logging HOS. However, companies that want to extract benefits besides compliance, e.g. in fleet management tactics, will go for advanced ELDs that integrate with their software and allow for route optimization, vehicle diagnostics, fuel monitoring, and so on.
Next, there are dedicated ELDs and BYOD (“bring-your-own-device”) types. The dedicated, pre-installed ELDs typically include a built-in display, GPS module, and wireless connectivity. BYOD ELDs allow drivers to use smartphones or tablets while connecting to a plug-in ELD.
Benefits of ELD beyond compliance
This “beyond compliance” factor is taking off in terms of importance. Of course, no regulations force a company to adopt tracking of additional data, but since the device is already in place, it might as well do other things than just log hours of service. With proper management of ELD, companies can optimize fuel use, reduce operational costs, and even influence the overall logistics efficiency.
Here are some of the most important benefits:
#1 Better fleet management
In reality, the very fact of automating HOS logging (and ditching manual logbooks) already saves time and reduces administrative loads for fleet managers. But when you integrate an advanced ELD with fleet management software and set up the transfer of additional data (like dispatching, vehicle locations, etc.) this streamlines coordination between drivers and dispatchers and allows for faster road assignments and improved route planning.
#2 Cost savings and fuel efficiency
ELDs can provide detailed reports on fuel usage, and it’s useful for identifying inefficiencies like excessive idling, harsh braking, or aggressive acceleration. Which means for the next driver training, there is enough information to know where to focus. Plus, ELDs have a role in route optimization and can be used alongside the specialized software to suggest efficient paths based on traffic conditions and weather.
#3 Safety and behavior monitoring
ELDs can come with features that track potentially harmful behaviors like speeding, harsh braking, and erratic driving. This, in turn, enables the company to introduce targeted measures against the identified problems; additionally, the enforcement of HOS regulations helps reduce driver fatigue and foster an atmosphere where drivers are more likely to comply not just with nationwide regulations but with company policies, as well.
#4 Better (potentially predictive) maintenance
Advanced ELDs include vehicle diagnostics systems, which, although not mandatory in terms of compliance, are useful for the fleet. They can provide notifications about engine faults, low battery levels and more – the type of data which, when aggregated, can be used for predictive maintenance systems and expand vehicle lifespan while saving on repair costs.
Maximizing the benefits of ELDs with software
Since ELDs are in place anyway, as a company, you might as well opt for strategies that allow you to extract benefit from them alongside mere compliance. That is, maximize their benefit! We’ve already hinted at the possible wins here, including a boost to the data strategy, optimized operations and such. Now let’s look at some proven tactics to make ELDs yield their worth.
Custom Dashboards and Advanced Data Analytics
Once you opt for advanced ELDs, they can be configured to capture additional data, which means you can create custom dashboards to address possible concerns. These include:
- Advanced analytics and predictive insights to improve fleet efficiency
- Custom dashboards that allow managers to track key performance indicators (KPIs) relevant to their business
- Real-time alerts for violations, fuel inefficiencies, or maintenance needs
There already are cases when ELD-provided data is used for AI “consumption”, and that makes the entire process more efficient.
Seamless Integration with Other Business Systems
To make that happen, go for integrations. A major challenge with generic ELD solutions is limited compatibility with other software used by trucking companies. Custom development allows for seamless integration with:
- Fleet management systems (FMS) for enhanced tracking and dispatching
- Transportation Management Systems (TMS) to streamline logistics operations
- Accounting and payroll software for automated payroll calculations based on driving hours
- Customer portals to provide real-time tracking and updates to clients
By unifying all these systems, companies can eliminate data silos and improve operational efficiency.
AI-Driven Route Optimization and Predictive Maintenance
Here at Lionwood.software, we’ve seen a surge of interest for route optimization and predictive maintenance software, resulting in some interesting cases. Custom software can leverage machine learning algorithms to improve:
- Route optimization by analyzing traffic patterns, weather conditions, and delivery schedules
- Predictive maintenance by detecting early warning signs of mechanical failures, reducing unexpected breakdowns and repair costs
These enhancements can cut fuel costs, reduce downtime, and improve on-time delivery rates.
Conclusions
The introduction of Electronic Logging Devices (ELDs) was initially seen as just another regulatory hurdle. However, as companies have adapted, it has become clear that ELDs offer far more than just compliance with FMCSA mandates. From optimizing fuel usage and improving fleet management to enhancing safety and predictive maintenance, ELDs can serve as a powerful tool for businesses willing to integrate them strategically. By leveraging the right software solutions, companies can turn ELD data into actionable insights, streamline logistics, and reduce operational costs.
At Lionwood.software, we specialize in custom software development for the logistics industry, helping businesses integrate ELD data into their fleet management systems, transportation management platforms, and predictive analytics tools. Whether you need seamless ELD integration, AI-driven route optimization, or automated compliance tracking, our team can develop solutions tailored to your needs.
Turn compliance into a competitive advantage. Contact us today to learn how we can help you maximize the value of your ELD data and optimize your operations.
