The Electronic Logging Device (ELD) Mandate compliance deadline is approaching, and a lot of industry experts are worried about what the future holds in 2018, including anxiety about 
freight costs.
Not only are experts concerned with the costs of implementing ELD, but also the productivity decreases and reduced capacity.
One of the current issues is that only the largest carriers have implemented the ELDs and there are over 190,000 carriers with fleets of 20 trucks or less that mostly have not addressed the issue, and won’t until closer to the deadline.
There currently is not enough data to say what the current effect is and most indicate it will be into 2018 when statistics are clear.
With increased economic growth, the industry is already seeing that any capacity constriction will only increase rate pressure on shippers.
According to an article by Trucks.com, there are already increases in some rates. The article says, spot van linehaul rates – without fuel surcharges added in – are 2.2 percent higher year-over-year, according to DAT. Flatbed truck linehaul rates are 2.9 percent higher. Spot rates – which are individually negotiated between what are typically small carriers and independent truckers and brokers – tend to be volatile.
The Partnership Connection Blog’s post, “How Will ELDs Impact Freight Costs in 2017 (and Beyond?),” states cost increases will be a result of covering the cost of implementing ELDs, mainly from smaller owner-operators. On the contrary, it is feared that some owner-operators may leave the industry as a result, reducing capacity.
An article by JOC.com, says there will be a pinch, but doesn’t believe reduced capacity will be an end result.
Whatever the outcome is post ELD mandate, the industry is sure to see some shifts.
Read our post on what to expect as the compliance date – Dec. 18, 2017 – gets closer, including exemptions.