Online freight marketplace Truckstop.com revealed that the rates per mile in all three major truckload sectors went up further in January 2018.
Following the implementation of the ELD rule, Truckstop.com data shows that spot market rates leaped to record-highs in January.
As you must know, the ELD mandate requires the use of an FMCSA-compliant electronic logging device by non-exempt commercial drivers.
Flatbed rates went up by 3 cents in January to $2.44 per mile or an increase of 40 cents from January 2017, according to Truckstop.com data.
It was the sector’s highest average since September 2014.
Even dry van and reefer rates achieved highs never seen since 2011.
Reefer rates jumped 29 cents from December to $2.80 per mile, equivalent to an increase of 71 cents from the same month last year, and the highest since Truckstop.com began distributing the information in 2011.
Van rates rose 14 cents to $2.54 per mile, which is a 60-cent increase over last January, and the highest per-mile monthly average for the sector.
During the second half of 2017, Truckstop.com noted that the market stood 10 points higher than the 5-year average, not including the difficulties caused by hurricanes Harvey, Irma, and Maria that devastated the U.S. during that period.
The gap then swelled to 25 points, before receding to past levels after the impact of the three storms diminished.
The gap then widened to 25 points in the last two weeks of 2017 and the whole of January 2018.
Noel Perry, Chief Economist at Truckstop.com, said that the time frame coincided precisely with the implementation of the ELD mandate, so “one can conclude that people posting on Truckstop.com care about ELDs. Nothing else has changed during that time to cause such a response.”
Perry also said that rate data showed the same results.
Noel told the latter half of 2017 saw a hike in rates, the hurricane surge in weeks 35 to 40, and another big jump in the 51st week that continued into this year.
“As always, rates fall in January, but the 30 percent increase in rates, year-over-year, remains,” Perry added.
Perry said that after the implementation of the ELD mandate, “we have strong evidence of specific market effects.”
“It is possible that the mechanism is more emotionally based than diligent enforcement of, or compliance with, hours of service laws. We will know if that is true after April, once the novelty wears off and full enforcement begins.”
Truckstop.com reported that spot market rates reached record levels in January — right after the ELD mandate took effect.