Could a New Regulation Drive Up Costs in Trucking?
One of the main burdens of regulatory compliance has always been the financial challenges it presents. This could be apparent with a new ELD mandate nearing the deadline.
While the US economy and the trucking industry are both in a slow-but-steady upswing, it is easy for this type of momentum to be disrupted. This is especially true when one accounts for the fact that the trucking is currently in the midst of a freight wave.
There has been a 100% increase in load volumes from the same time last year, and the fast-approaching peak season is expected to drive things up even further. Rates have already begun to ascend at a marginal pace, but the upcoming switch to electronic logging devices could throw hundreds of thousands of carriers off to some degree.
While larger companies have complied with the mandate for the most part, medium-sized companies are still hit-and-miss when it comes to complete compliance with the new rule.