Secretary Duffy Exposes ELD Cheating Driving Trucking Rates Down

Secretary Duffy Says ELD Cheating Is Driving Down Trucking Rates

Transportation Secretary Sean Duffy said widespread electronic logging device fraud is giving some carriers an unfair advantage and putting pressure on trucking rates, particularly for small fleets that follow hours-of-service rules.

Duffy made the comments during a recent announcement outlining a joint effort by the Department of Transportation, the Department of Homeland Security and state prosecutors to pursue fraud involving commercial driver licensing, trucking operations and electronic logging devices.

He also used the appearance to reject concerns about a nationwide driver shortage. The comments came after the Department of Transportation announced the closure of 270 commercial driver’s license schools that allegedly passed applicants who could not meet English-language requirements or failed to satisfy basic standards.

When asked how the closures would affect freight delivery, Duffy said the country would still have enough qualified drivers to move goods.

“So, you’re saying if I take off the illegal truck drivers who weren’t trained, do we have enough drivers to get in big rigs and deliver product around the country? And the answer to that is yes, we do,” Duffy said.

He connected the issue to both highway safety and competition within the trucking industry. According to Duffy, drivers who work beyond their legal hours through manipulated logs can haul more freight than compliant operators, creating an advantage that affects the entire market.

“One of the issues we’ve had is because we have these fraudsters who have come in and will work way more than they’re allowed to in their hours of service. They’re driving rates down,” Duffy said.

He said small, family-owned carriers operating 20 or 30 trucks are being forced out of business because they cannot compete with companies that use drivers or equipment to bypass federal safety rules.

“They might have 20, 30 rigs. They’re going out of business because they can’t compete with the fraudster,” Duffy said.

The comments reflect concerns that have been raised by drivers and carriers about the development of electronic logging device systems capable of concealing hours-of-service violations. ELDs are intended to record a commercial driver’s duty status and make it more difficult to falsify driving time. However, some systems have allegedly been modified to allow remote changes to a driver’s record.

Industry reporting has identified evidence involving two fleets that allegedly used hacked ELD systems. In those cases, overseas dispatch offices were reportedly able to add driving time to a driver’s available hours. Researchers cited in the reporting have estimated that systems with similar vulnerabilities could represent as much as 70% of registered ELDs in the U.S. market, although that figure is an industry estimate rather than a federal finding.

Enforcement data shows that authorities are identifying more cases of suspected remote ELD tampering. More than 300 carriers had drivers cited under a new out-of-service violation code for that type of conduct between its introduction in April and roughly mid-July, according to data tracked by Overdrive’s sister company, RigDig.

The Federal Motor Carrier Safety Administration has also revoked the registrations of ELDs found to be noncompliant. Reporting on those devices has indicated that some could be used to manipulate hours-of-service records from the back end.

For drivers, the problem is not limited to unfair competition. A manipulated log can create pressure to remain on the road after legal driving time has expired. Duffy referred to “strong solo” drivers being used on loads that might otherwise require a legal team operation. That practice can affect rate expectations while increasing fatigue and safety risks for drivers who are expected to meet unrealistic schedules.

Detecting the problem at roadside has also presented challenges. Some states have reported success identifying tampering, including Arizona and Oregon, while other jurisdictions were described as being behind the curve during the spring inspection season. More recent violation data suggests that enforcement capabilities have improved in some areas.

Duffy warned motor carriers that the new enforcement effort would examine companies that hire drivers without adequate English-language skills or training. He said employers could face scrutiny if they knowingly use drivers who cannot understand safety-related communications or who were trained through unqualified schools.

“Companies who are hiring drivers who don’t speak English or didn’t go to a well-qualified school: Watch out,” Duffy said. “We’re going to come and look at you as well.”

The broader enforcement effort is being conducted through the newly formed Joint Task Force Crossroads of America, which includes federal transportation and homeland security agencies along with state prosecutors.

FMCSA has also issued guidance for drivers who are pressured to violate hours-of-service rules. The agency advised drivers who are coerced into driving beyond their legal limits to document the circumstances and submit complaints through its National Consumer Complaint Database.

The debate over driver supply remains unresolved, but Duffy’s comments place ELD fraud at the center of the administration’s argument that the industry’s immediate problem is not a lack of drivers. Instead, the department says enforcement against unqualified training providers, coercive carriers and manipulated logging systems is necessary to protect highway safety and restore fair competition for compliant trucking companies.