ELD Enforcement Contributes to Rising Freight Rates
Electronic logging device (ELD) enforcement has contributed to rapidly growing freight rates, according to a report from transportation information firm DAT Solutions. The firm found that 3 percent of surveyed truckers planned to retire instead of comply with the ELD rule, which was a large factor in a 7 percent drop in year-over-year trucking capacity.
Although the ELD rule came into effect at the end of 2017, the Department of Transportation only began enforcement of the rule on April 1, 2018. ELDs automatically track a driver’s compliance with federal hours-of-service limits, and drivers who don’t use the devices must stop driving until one is installed.
While freight rates in April are generally lower following the end of the first quarter, DAT Solutions’ report found that rates have increased as motor carriers struggle to account for a shortage of skilled drivers.
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