ELDs’ Capacity Squeeze Assumption #2 -Flight From The Industry

(Last Updated On: January 6, 2018)


From Todd Dills, Overdrive:

Owner-operator-controlled businesses will leave the industry in large enough numbers to produce a significant capacity shortage in the spot market, driving up rates.

DAT analysts heard what Overdrive saw upon release of the ELD mandate Notice of Proposed Rulemaking in early 2014 — an alarmingly large number of operators noting an intention to exit the industry if the mandate went through. Overdrive’s initial survey about the mandate yielded percentages as high as 71 percent of nonleased independents saying they’d hang up the keys for good.

How much among those threats, DAT’s Ken Harper asks, is bluster? “We’re playing with fire” when trying to draw real conclusions from such polling, Harper says.

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