Transportation & Logistics Regulatory Update

Last updated: December 30, 2025

FMCSA Removes Five ELDs from Registered List

Effective Date: November 20, 2025

The Federal Motor Carrier Safety Administration (FMCSA) has removed five electronic logging devices (ELDs) from its official registered devices list due to failure to meet minimum technical requirements under 49 C.F.R. Part 395, Appendix A.

Affected Devices

The following ELD products have been moved to FMCSA's Revoked Devices list:
• Ontime Logs PT (Ontime Logs Inc.)
• Green Light ELD (Green Light ELD LLC)
• Sahara ELD (Sahara ELD LLC)
• USFAST ELD (USFAST ELD)
• ELDWISE (NextParse LLC, formerly ELDWISE)

Compliance Timeline

Motor carriers using these revoked devices must take immediate action:

Immediate (November 20, 2025): Begin using paper logs or compliant backup logging software to maintain driver records of duty status.

60-Day Transition Period (through January 20, 2026): Carriers have until this date to fully migrate to an approved ELD. During this period, drivers using a revoked device alongside proper paper or backup logs will not be cited for having "no record of duty status."

Post-Transition Enforcement (after January 20, 2026): Carriers continuing to rely on revoked units will be treated as operating without a compliant ELD. Roadside inspectors may cite drivers for hours-of-service violations, and drivers can be placed out of service under CVSA criteria.

Impact on Logistics Partners

This enforcement action extends beyond motor carriers. Transportation contracts often include compliance-with-law clauses, warranties, and indemnity provisions tied to regulatory violations. If a contracted carrier continues to use a revoked ELD and faces enforcement action or is involved in a crash, disputes over costs, delays, and liabilities may arise.

Recommended Actions:
• Confirm which ELD systems your contracted carriers are using
• Review and tighten contractual language around ELD/HOS compliance and audit rights
• Implement vendor-compliance checklists to stay ahead of regulatory changes

FMCSA Broker & Freight Forwarder Financial Responsibility Update

Compliance Deadline: January 16, 2026

FMCSA's final rule on Broker and Freight Forwarder Financial Responsibility, initially issued in November 2023, will take effect on January 16, 2026. The compliance date was extended by one year to align with FMCSA's new electronic registration system.

Key Requirements

The rule establishes stricter security and reporting standards:
• Acceptable Security: Limited to specific asset types including cash, certain treasury instruments, and irrevocable letters of credit
• $75,000 Threshold: Formal procedures for suspension of operating authority when security falls below this amount
• Rapid Reporting: Surety and trust providers must notify FMCSA within two business days when a drawdown or insolvency would reduce security below required levels
• Electronic Filing: All required filings and notifications must be submitted through FMCSA's new electronic registration system

Implications

This rule affects both entity-level compliance and counterparty risk. Carriers and shippers are increasingly scrutinizing brokers' bond and trust status, and regulatory suspensions may trigger contractual default provisions and complicate claims handling.

FMC Demurrage & Detention Billing Rule Update

Court Decision: September 23, 2025
FMC Clarification: November 20, 2025

The Federal Maritime Commission's Final Rule on Detention and Demurrage Billing Practices (effective May 28, 2024) remains largely intact following a D.C. Circuit Court challenge by vessel-operating carriers.

What Changed

The court set aside only 46 C.F.R. § 541.4, which limited who could receive demurrage and detention invoices (essentially to the contracting party or consignee). FMC may revisit this issue in future rulemaking.

What Remains in Effect

All other provisions of the demurrage and detention rule continue to apply, including:
• Requirements for accurate, information-rich invoices
• 30-day invoice issuance deadline
• Standards for invoice content and timing

Non-compliant invoices may be deemed non-collectible.

Practical Impact

While billing-party rules are in flux, the substantive invoice-content and timing mandates remain enforceable. Freight forwarders, NVOCCs, and warehouse operators can continue to challenge improper demurrage and detention invoices and should structure contractual allocations of charges to align with surviving FMC requirements.

DOJ Tariff-Evasion Enforcement Directive

Issued: May 12, 2025
Status: Active

The Department of Justice's Criminal Division has identified trade and customs fraud, including tariff evasion, as a high-impact enforcement priority in its May 2025 directive on white-collar crime.

Enforcement Focus Areas

DOJ prosecutors are actively pursuing various tariff-evasion schemes:
• Parallel or split invoicing
• Transshipment through third countries with altered origin markings
• Use of related-party importers to manipulate declared customs values

Whistleblower Program Expansion

On the same date, DOJ revised its Corporate Whistleblower Awards Pilot Program to include "violations by or through companies related to trade, tariff, and customs fraud" as a covered subject area. This creates financial incentives for insiders to report tariff-evasion conduct.

Consequences

Both criminal and civil enforcement tools are available. Civil penalties can reach multiples of unpaid duties in serious cases.

Risk for Logistics Providers

Trade-compliance risk now extends throughout the supply chain. Freight forwarders, NVOCCs, customs brokers, and warehouse operators involved in routing decisions and documentation may be treated as targets or key witnesses in tariff-evasion investigations.

Risk Mitigation Measures:
• Implement robust internal controls and documentation integrity procedures
• Carefully draft contracts to address responsibility for classification, valuation, and country-of-origin declarations
• Establish clear expectations and audit rights with respect to upstream suppliers and transportation partners
• Maintain comprehensive records of routing decisions and documentation

Questions?

For guidance on how these regulatory developments affect your operations, please contact our transportation and logistics team.