Shippers will pay more to trucking companies for a while. A “perfect storm” of surging demand, a driver shortage, cold weather, and tighter safety regulations boosted rates in January by as much as 40% from a year ago. Although the extremely cold weather requiring temperature-controlled trucks has eased, the other factors are still pressuring shipping costs. Spot rates will keep rising, though at a slower pace, until mid-year, but contract rates will rise until mid-2019, according to Avery Vise, vice president for trucking research at FtrIntel.com.
The driver shortage is worsening, when the country is already down approximately 50,000 drivers, as estimated by the American Trucking Association. New safety regulations requiring electronic logging devices (ELDs) on trucks that record actual driver hours, which make it easier to enforce hour limits, are one factor. Larger trucking companies have already adopted these, but many independent truckers will delay until enforcement starts in April. This additional squeeze on driver availability is the reason the shortage may get worse before it gets better.
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