The New Year always means starting fresh. Including anticipation of big changes for future. This year truck drivers may be looking forward to 2018 more than anyone. The ELD mandate, driver shortages, fuel costs, and e-commerce boom are all components that leverage trucking companies’ ability to determine cost and coverage.
Truckload rates are going up due to a number of different factors, like Hurricanes Harvey, Irma and Maria, the ELD Mandate, the driver shortage etc. That means that drivers and trucking companies are going to be behind the wheel when it comes to determining how much shipping lanes will be going for. Having this leverage trucking companies have the potential for less bargaining power and high shipping costs heading into the new year.
A notable increase in shipping economy means that though the number of available truckers has decreased, those who are qualified are more in demand than ever. Also, because those drivers may have to travel outside their normal area of operations, they can charge a premium. The growing economy will further push demand of available carriers. The ATA estimates that the current driver-deficit could expand drastically over the years.
With that economic push, and labor shortage, truck drivers will demand higher wages and shippers will have to pay. The driver pay structure is also evolving. Where once most carriers were being paid by load, many are now moving to pay per hour model, specifically because of the ELD mandate. Either way, with the anticipated changes for the new year, it’s safe to say 2018 will be the year of the truck drivers and carriers.