Transportation Costs Rising
Transportation costs are rising – faster than we’ve seen it in years.
Over the past several months, we’ve seen a steady increase in international trade. The global economy is growing. While the demand for goods is increasing, so are the transportation costs for getting those goods to market. Space availability, supply and demand, new regulations and fuel costs all play key roles.
Electronic Logging Devices
One of the newest regulations is the ELD mandate. ELDs – Electronic Logging Devices – automatically record driving time, and provides a more accurate record of a vehicle’s Hours of Service. ELD’s are required to be used by commercial trucking companies and drivers under the MAP-21 regulations.
Under this new mandate, truckers are allowed a certain number of hours per day for travel. Any diversion from the laws may mean fines and penalties for the trucking company and the drivers.
How could this affect your business? It could cause a shortage of available drivers, reducing the supply of available trucks, making it harder to book deliveries or even raising transportation costs.
You can find more information about the Hours of Service at FMCSA web page. Combined with the issue of port congestion and the time it takes to retrieve containers from the terminals, the new ELD mandate will create delays in getting your goods delivered. You may see increases in transportation costs of up to 5 – 10% or more. Unknown for now is whether or not trucking companies will charge for waiting in the terminal to retrieve containers, or if there be a decrease in the time allotted an importer to unload his cargo from the container.
Going forward, there will be many changes and we want you to be prepared. Call your C J account manager to discuss any questions or concerns.