Spot market rates continue to go up after the ELD mandate implementation date.
The data on monthly rates from Truckstop.com showed that spot market per-mile rates in all three major truckload segments accelerated further last month.
The data also showed that reefer and dry van rates reached seven-year highs.
The data by Truckstop.com showed reefer rates jumped 29 cents from December to $2.80 per mile, which is a 71-cent hike from the same month in 2017 and the highest since Truckstop.com began sharing the data to CCJ in 2011.
Dry van rates
Van rates, on the other hand, went up 14 cents to $2.54 per mile — a 60-cent increase over January 2017.
Just like with reefer rates, it was the highest monthly per-mile average for the segment since Truckstop.com began providing rate info to CCJ.
Flatbed rates, meanwhile, increased by 3 cents in January to $2.44 per mile, up 40 cents from January 2017 — the segment’s highest average since September 2014.
Truckstop.com said that if you exclude the problems caused by the onslaught of hurricanes Harvey, Irma, and Maria, for most of the second half of last year, the market hovered around 10 points higher than the five-year average.
The gap then expanded to 25 points before going back to previous levels once the hurricane impact subsided.
In the last two weeks of 2017 and throughout last month, data revealed that the gap jumped back to 25 points.
Truckstop.com’s Chief Economist Noel Perry said: “Since that period corresponds exactly to the ELD mandate, one can conclude that people posting on Truckstop.com care about ELDs.”
“Nothing else has changed during that time to cause such a response,” he added.
The ELD mandate requires non-exempt truckers to install FMCSA-compliant electronic logging devices.
Perry pointed out that the rate data showed a similar story.
“We see the second half 2017 increase in rates, the hurricane jump in weeks 35-40, and another large jump in week 51 that has continued into 2018. As always, rates fall in January, but the 30 percent increase in rates, year-over-year, remains,” Perry said.
“After more than a month, we have strong evidence of specific market effects since the mandate took effect,” he added.
Perry believes that the mechanism “is more emotionally based” than diligent enforcement or compliance with hours of service rules.
Spot market rates grew to record levels following the implementation of the ELD rule, according to Truckstop.com’s data.
This is strong evidence of the positive impact of the ELD mandate on the trucking industry and underscores the need for carriers to comply with the law.
If you have any questions about the KeepTruckin ELD, call 844-325-9230.