All Roads Lead to Price Growth: Navigating Rising Trucking Costs

Categories : Procurement Goals | Set Strategy | Save Money | Reduce Risk Published on : Jun 11 2018

In December of 2017, the electronic logging device (ELD) mandate officially went into effect, ending all efforts to delay the law and the anticipated trucking price hikes that were certain to come with it. In fact, trucking service prices rose about 6% this January, despite the fact that transportation prices typically drop after surge pricing during the holidays. At the beginning of April, 2018, enforcement of the ELD rule officially began, and inspectors have already ordered noncompliant vehicles to be taken out of commission, further reducing shipping capacity. This directive, combined with rising diesel fuel prices, high demand for freight transportation and the unrelenting shortage of qualified drivers, has created a perfect storm of price growth. With no real substitute for truck transportation, businesses and consumers across the country can expect the price of many raw materials, MRO supplies and other purchased goods to rise as well.

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