Canadian Legislative Issues
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Last summer, Transport Canada signaled its intention to potentially change hours of service regulations, launching a consultation on the mandatory use of electronic logging devices (ELDs).
More than a year later, no formal rule change has been implemented by the government. However, there is a reasonable expectation that Canada will soon see an ELD mandate – that is, mandatory ELDs for commercial fleets operating in the country. As per Transport Canada’s assessment, ELDs can "increase the accuracy of tracking driving hours, in an attempt to ensure that allowable driving hours are not exceeded and reduce the administrative burden and driver time associated with filling out paper logbooks."
The regulatory consultation was launched in the summer of 2016, and the Department is currently in the process of reviewing submissions made by other levels of government and industry stakeholders with a view to drafting final regulations before the end of the year.
Such a mandate would represent an up-front cost for fleet operators, though Transport Canada cites a cost-benefit analysis that values benefits of ELDs at twice their cost for fleets, in time saved by drivers and administrators, as well as reduced collisions caused by driver fatigue due to more accurate logging.
The mandate would bring Canada in line with U.S. rules, enhancing the regulatory harmony between the two countries. It is also supported by industry groups such as the Canadian Trucking Association, which has been pushing for a mandate for many years. The rare combination of industry support and positive cost-benefit equations means that an ELD mandate will be likely in Canada if not before the end of the year, then likely sometime in 2018. Fleet operators should prepare if they have not already for this regulatory change coming at the industry in the near future.
More than a year later, no formal rule change has been implemented by the government. However, there is a reasonable expectation that Canada will soon see an ELD mandate – that is, mandatory ELDs for commercial fleets operating in the country. As per Transport Canada’s assessment, ELDs can "increase the accuracy of tracking driving hours, in an attempt to ensure that allowable driving hours are not exceeded and reduce the administrative burden and driver time associated with filling out paper logbooks."
The regulatory consultation was launched in the summer of 2016, and the Department is currently in the process of reviewing submissions made by other levels of government and industry stakeholders with a view to drafting final regulations before the end of the year.
Such a mandate would represent an up-front cost for fleet operators, though Transport Canada cites a cost-benefit analysis that values benefits of ELDs at twice their cost for fleets, in time saved by drivers and administrators, as well as reduced collisions caused by driver fatigue due to more accurate logging.
The mandate would bring Canada in line with U.S. rules, enhancing the regulatory harmony between the two countries. It is also supported by industry groups such as the Canadian Trucking Association, which has been pushing for a mandate for many years. The rare combination of industry support and positive cost-benefit equations means that an ELD mandate will be likely in Canada if not before the end of the year, then likely sometime in 2018. Fleet operators should prepare if they have not already for this regulatory change coming at the industry in the near future.
