Canadian Electronic Logging Device Mandate Set for 2021

The US Department of Transportation found that trucks transported over 65 percent of the total goods exported to Canada, worth US$282 billion. US and Mexico domiciled fleets operating cross-border transport will need to ensure compliance with Canada’s updated Electronic Logging Devices (ELD) specifications. Canadian fleets will also need make needed enhancements. Commercial telematics suppliers will need to determine if they will offer a solution, what is needed to meet the requirements, how to become certified and how long the entire process will take. How will this impact the hundreds of suppliers currently self-certified in the United States?

Technical requirements for the Canadian devices largely mirror those of the United States’ 2017 ELD Mandate. The United States’ ELD rule allowed providers to self-certify their devices, allowing at least 250 providers to be in compliance with U.S. specifications. Canada, however, will require third-party certification, which will require time and resources to be in compliance with. The regulatory body is currently requesting feedback from interested certification firms to determine process and providers. Testing standards, costs, and payers have yet to be determined. The mandate will be enforced starting June 12, 2021. Some differences exist between the two mandates, including personal conveyance, location data sources, and roadside data transfer methodology. Additionally, there will not be any grandfather period for older, non-compliant devices like there is in the United States.

The mandate is expected to impact the numerous, smaller U.S. ELD providers that self-certified more than the majority of large commercial telematics suppliers that opted to certify through third-party providers prior to the December 2017 U.S. deadline. Not all of the U.S. providers may seek Canadian certification, and the material cost for external certification will likely consolidate the North American supplier base. It is likely that the process itself will be ongoing for at least a year. The Canadian market itself is smaller than the United States’, with the Canada Gazette anticipating an additional 65,000 in-country commercial vehicles will require compliance. In essence, the largest opportunity and potential challenge of the upcoming Canadian ELD Mandate is for fleets and telematics providers engaged in cross-border transport, with U.S. ELD providers that do not obtain Canadian certification facing the greatest losses.

The Canadian government has been developing a draft of the regulation for about two years and, like the United States, aims to reduce fatigue-based fatalities as well as paperwork and false entries. The administration is also interested in the benefits and economic advantages that would come from improved cross-border trade.

According to Transport Canada spokesperson Annie Joanette, the intent is “to ensure that a single device is capable of complying with the ELD rules of both countries.” Prospective suppliers must be proactive in taking the next steps of the certification process. Additional details can be found in an article published in an article published in the Canada Gazette at the end of May. Once the testing and approval process is published, providers will need to ensure that they prioritize the third-party testing process, as the number of testing companies and timeframe for testing completion are not yet known.

Fleets with cross-border operations must also ensure that their ELD solutions will meet the requirements, often through an Over-the-Air (OTA) update. It is expected that software updates to the devices will allow changes to modes automatically or manually for compatibility and cross-border goods transport between countries. This should occur sooner rather than later, as any lapses in certification will become liabilities and necessitate a new solution as well as potential fines for fleets. The ELD device record will include a certification number that drivers, carriers, and enforcement personnel will be able to use to verify authenticity. All of these considerations should be top of mind for product development, business development, regulatory and/or account management roles at telematics providers as well as cross-border and Canadian-based fleets.