With the trucking industry trying to come to terms with the ELD Mandate. We are seeing its effects throughout all industries as freight rates are rising due to the regulation, driver shortages, and retiring drivers. As freight rates increase for shippers, the price of the goods we buy on a daily basis will go up. This year we will see the added costs of trucking trickled down to the consumers across all industries.
Food prices expected to rise due to ELD mandate
The produce industry is one which has a large concern about being able to find the truckload capacity to move their produce around the country.
The prices of fresh produce is expected to rise in the wake of the ELD mandate (Source: Pexels) Ever since the ELD mandate in December, there has been a discussion about the inevitability in the inflation of food prices across the country. It does not take an economist to understand the scenario – ELDs enforce hours-of-service (HOS) rules, which is widely seen as a restriction on the trucking community and a limit on the number of hours drivers are on the road, thereby increasing the time it takes for freight delivery. It also reduces the profit margins of fleets and drive up rates, which has been quite evident across the industry over the last couple of months. The FMCSA defends the introduction of ELDs, saying it helps keep the roads safer by reducing truckers from going behind the wheel when they are fatigued. Data collected by FMCSA on ELD usage in 2014 showed a 12% reduction in the total crash rate. But the report also noted that there was a visible skewing in data towards larger fleet companies, which made the results questionable. Food prices expected to rise due to ELD mandate
thumbnail courtesy of freightwaves.com
How RC Transport can help your company
As a company that moves freight on a daily basis, RC Transport is seeing the tight capacity concern throughout our customer base. The increasing rates have made it hard for customers to move their products. In order to help with the increased truckload prices, we are offering Flat-Rate Shipping Services for all Partial and Full Truckload shipments. We also have discounts on our LTL Freight services. If your company is looking for better pricing and excellent service, contact us today.