If you have been thinking about how to manage your financial records for truckers, a bookkeeping service from companies like Equinox Business Solutions will only be more necessary now that freight costs are increasing in the U.S.
Trucking companies in the country currently struggle to fill vacancies for drivers. This shortage of drivers not only push up prices but also lead to delayed shipments.
Bob Costello, American Trucking Associations (ATA) chief economist, said that a strong demand and tight driver capacity has led to an unprecedented situation for the trucking sector. Freight trucks account for a majority of shipments distributed across the country, so a shortage of 51,000 truck drivers has a significant impact on transportation costs.
The ATA expects the shortage to further increase to almost 100,000 in 2021. Hence, companies that don’t have their fleet of trucks should rethink about keeping their financial ducks in a row. Other factors such as the newly implemented ELD (electronic logging device) mandate serve as another reason for the rising freight prices.
The ELD rule took effect on April 1, and it replaced a manual logbook used by truck drivers to record their hours of service. Trucks will have to be parked once drivers hit their time limits on the road, which should not be more than 11 hours every day.
The new policy further inflates freight prices since there are fewer trucks on the road at certain times. Truck drivers also dislike the idea of something monitoring their every move, which already led some people to quit their jobs. Some experts said that this partly caused prices to increase between 6% and 10% over the previous year.
Trucking firms need to be more conscious about their financial records due to the high cost of transportation prices today. How do you keep tabs on your expenses, assets, and liabilities?