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FTR: ELD Rollout Will lead to “Substantial” Capacity Crunch

American transportation consultants FTR Associates is forecasting “steadily-deteriorating conditions” for shipping capacity through 2017, in reaction to stronger demand and the Electronic Logging Device (ELD) mandate.”

This year will carry upside risks to truckload rates because of a tightened market, possible oil price inflation, and the chance of general inflation.

“Although many shippers are saying, ‘We will believe it when we see it,’ our thesis that truck capacity will tighten significantly over the course of 2017 remains intact,” says Gross. “Some may believe that the course of this mainly regulatory-driven event will be altered by the Trump administration, but our expectation is that the key change, namely the mandate for ELDs, will take effect in December as planned.

While the pace and even the magnitude … is still somewhat uncertain, shippers would be wise to lay in contingency plans for dealing with this significant event.”

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