State of the Industry – Quarterly Review

Take a look at the state of the logistics industry at the close of Q2. The market dealt with impacts from new hours-of-service violations and is already seeing affects from tariffs. Additionally, the beginning of the quarter brought high numbers between the balance of spot market demand and capacity. Here’s a look at how that all impacted load-to-truck ratios, fuel costs, tonnage, and rate trends.
  • As of April 1, new violations associated with the Federal Motor Carrier Safety Administration’s (FMCSA) electronic logging mandate are now associated with the Hours of Service Compliance BASIC category in the Compliance, Safety, Accountability (CSA) program’s Safety Measurement System. The violations will not be applied retroactively. With the most recent update, several new violations have been implemented and severity weights associated with them in the internal safety-scoring program have been determined and newly published.
  • Uncertain trade policy and the threat of tariffs will have an impact on future expansion in the trucking industry. Tariffs typically lead to a higher price in steel and other commodities used to build trucking equipment. According to ATA Economist, Bob Costello, there are 50,000 full-time trucking jobs needed to support North American Free Trade Agreement (NAFTA).
  • Load-to-truck ratios, fuel cost, and rates all increased from this time last year.