Mark Hazelwood — chairman of Conversion Interactive, Echo Flaps, and Assured Telematics — is sounding the alarm on what he describes as a safety and economic crisis in the U.S. trucking industry: unchecked electronic logging device (ELD) self-certification and a surge of non-domiciled CDL holders using manipulable devices to far exceed legal hours-of-service limits.

Congress mandated electronic logging in 2012, and the FMCSA's ELD rule became fully enforceable in December 2019. The devices were designed to create tamper-resistant records of drivers' hours, replacing paper logs that had been widely falsified. Hazelwood's argument is that the self-certification framework has undermined that very purpose.

In a detailed interview, Hazelwood argued that these factors are not only distorting freight markets but also contributing to highway fatalities, and he urged the United States to adopt Canada's third-party ELD certification model.

The original article was published by FreightWaves at freightwaves.com.

The ELD Self-Certification Gap

The United States currently has approximately 1,020 ELD providers operating under a self-certification model. By contrast, Canada — which has required third-party certification since 2019 — has just 42 providers. Canada's model requires ELD vendors to pass independent testing against a technical standard before they can be used for compliance, closing the loophole that allows providers in the U.S. to enter the market with no independent verification.

"There are about 1,020 ELD providers, and it's all because we have self-certification on the ELD," Hazelwood said. "In self-certification, it's like grading your own papers. Guess what? You're self-certified. You're now an ELD provider."

According to Hazelwood, the self-certification system has allowed bad actors to flood the market with manipulable ELDs that enable drivers to bypass hours-of-service regulations and drive far beyond legal limits. He noted that a significant number of these ELD companies are based overseas and can edit software remotely. FreightWaves has reported cases in which so-called chameleon carrier networks own the ELD devices their operators use; when shut down, they simply recertify under a different name using copy-pasted software.

Hazelwood said the current administration is expected to announce a move toward third-party ELD certification, though he cautioned that full implementation within 12 months would be difficult. The FMCSA — the DOT agency responsible for regulating commercial motor carriers — would need to establish a certification process, identify entities to perform certifications, and then allow all existing ELD providers to undergo the process.

"My guess is if we could get that done over the next 12 months, I think it would be a heroic act to get it done in 12 months," he said.

He predicted that many of the 1,020 current ELD providers would exit the market rather than invest in certification once the policy is announced. Assured Telematics, where Hazelwood serves as chairman, was the first ELD provider certified in Canada and spent millions of dollars obtaining that certification. He expects comparable costs in the U.S. market.

"We can't have self-certification on something as important as an ELD," Hazelwood said.

Non-Domiciled Drivers and the Capacity Distortion

Hazelwood has spent the past year focused on non-domiciled CDL holders and their impact on the industry. A non-domiciled CDL is issued to an individual who does not have a permanent U.S. address but may have some form of legal presence. Non-domiciled drivers exploiting manipulated ELDs are logging an estimated 145,000 to 150,000 miles per year, he said, compared with the roughly 92,000 to 96,000 miles a compliant driver can legally run under hours-of-service rules.

"When you take one driver out, you're taking 1.5 out, because that driver that you're taking out, that non-domiciled, has probably run 140,000 to 150,000 miles versus running 92,000 miles — that's a major difference," Hazelwood explained.

The non-domiciled CDL holder population surged during the prior administration. When President Trump left office in January 2020, there were approximately 170,000 non-domiciled CDL holders. By the time he returned to office in January 2025, that figure had risen to 780,000.

Hazelwood attributed the increase in part to CDL mills that fast-tracked commercial licenses within two to three days without adequate training. He described the practice as part of a broader pattern of market manipulation encompassing miles driven, insurance coverage, and other operational requirements.

This capacity distortion comes against the backdrop of a U.S. trucking sector that has weathered a prolonged freight downturn since 2022, with excess trucks chasing shrinking volumes and pressuring carrier margins. The persistence of artificially low rates driven by non-compliant operators has made it harder for compliant carriers to compete during that cycle.

Enforcement Actions and Safety Concerns

The FMCSA and DOT, under Secretary Sean Duffy and FMCSA Administrator Derek Barrs, have taken more than 20,000 drivers out of service and revoked 28,000 illegal CDLs. Hazelwood acknowledged that while these numbers alone are not yet sufficient to meaningfully shift freight capacity, the enforcement actions are having an incremental effect — comparable, he and the hosts noted, to how the incremental barrel sets the price of oil.

Hazelwood emphasized the human cost of the regulatory gaps, citing fatal crashes involving inadequately trained non-domiciled drivers. He referenced incidents in multiple states, including Florida, California, Indiana, and Pennsylvania — where a state trooper was killed.

"They're killing people," Hazelwood said. "You have innocent Americans on the highway, and they're being killed by these illegals driving trucks that have not been trained to drive trucks. They haven't been put through certified schools, and they've been given a CDL within two to three days."

He called for third-party certification not only for ELDs but also for CDL training schools, where he said self-certification issues persist.

Engagement with DOT and FMCSA Leadership

In early December, Hazelwood attended a meeting with Secretary Duffy, Administrator Barrs, American Trucking Associations (ATA) President and CEO Chris Spear, and representatives from carriers. He described the meeting as highly constructive.

"Chris Spear went with us, and we left the meeting and he was like, 'That's a first,'" Hazelwood recalled. "He said, 'I have never been in a meeting with the DOT [or] FMCSA to where when we left, we said, okay, these guys got it and they're going to do something about it.'"

Hazelwood praised the current administration's engagement on trucking issues. He noted that trucking was mentioned in the State of the Union address — which he said he could not recall ever happening before — and that Duffy has spoken about trucking with unusual frequency for a DOT secretary.

Driver Recruiting and Market Dynamics

On the driver recruiting front, Hazelwood said Conversion Interactive — which he described as the largest driver recruiting agency in the country — is seeing rising demand. The company, owned by Hazelwood, his wife Joanne, and Kelly Walkup, has developed an AI platform called Agentic for driver recruitment.

Rates have been climbing for roughly five to six months, Hazelwood said, but unlike prior upcycles, carriers are not rushing to add capacity due to the limited pool of qualified drivers. He believes this dynamic will help prevent the market from overcorrecting.

"I think for the first time you're seeing real capacity leave the market," he said. "You don't see capacity entering the market. Typically, when you have rate increases like what we've seen over the last five or six months, you typically have carriers adding trucks, adding equipment. I think it's a little tough for the carriers to add capacity due to the limitation of drivers."

However, he added that as carriers see improved returns on investment, they will invest in equipment, drivers, and supply chain continuity.

Diesel Crack Spreads and Energy Outlook

Separately, Hazelwood offered a detailed outlook on diesel pricing. Refiner margins on diesel — known as crack spreads — currently sit at $87 per barrel, far above the historical norm of $15 to $20. For comparison, the crack spread on gasoline is approximately $40 per barrel, which he noted is also elevated. Because diesel fuel typically ranks as the second-largest operating expense for trucking fleets after driver wages, sustained crack spread levels directly pressure carrier profitability.

Hazelwood attributed elevated diesel prices to U.S. exports of roughly 2 million barrels per day flowing to Northern Europe, where refinery disruptions tied to the Russia-Ukraine conflict have reduced supply. He noted that the United States consumes approximately 20% diesel and 80% gasoline, while Europe's consumption is roughly 50% to 55% diesel.

Looking ahead, Hazelwood projected that diesel crack spreads could fall below $40 within six months. He also suggested that crude oil prices could return to the low-$60 range once the Russia-Ukraine conflict concludes, potentially with an immediate drop of roughly 20% in crude prices when a resolution appears imminent.

U.S. oil production currently stands at approximately 14 million barrels per day, Hazelwood said, and could reach 16 million barrels per day by next spring.

"When you look at this crack spread, it has got to come down," he said. "Do I think it's going to be $20 in the next six months? No, but I think it will be under $40."