2018 Freight Challenges

What is going on with Freight? Why are my costs so high? Why can’t I get a truck when I want one? Is this ever going to end? These are just a few of the questions we have been hearing over the past year and so we explored some of the reasons behind the current trucking issues and what we should expect for the coming year.

According to a report issued by the American Transportation Research Institute in October 2017 the top 5 trucking issues are:
• Driver shortages
• ELD mandate (Electronic Logging Device)
• Hours of Service rules
• Lack of available safe truck parking
• Driver retention

By the end of 2017 the driver shortage is estimated to hit 50,000 which would make it the highest shortfall on record. Low pay, life style, more alternative jobs, new regulations and increased freight are a few of the contributing factors. Trucking companies are actively recruiting but have to offer higher wages and incentives which will translate into higher shipping costs.

On December 18, 2017 The Electronic Logging Device (ELD) Mandate was implemented despite efforts to delay it. Many drivers say this is an invasion of their privacy and are concerned with the costs of deployment and what it will mean for industry productivity.

All experts agree it is going to get worse before it gets better. What does this mean for 2018? Expect rates to remain high and equipment availability to be tight. Early orders and early shipments will help minimize delays and allow product to be in place when you need it.

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