Why the costs could go way up to ship anything

(This post originally appeared on The Washington Post)

A few months ago I wrote about a study that warned of a dearth of capacity faced by trucking companies and how these constraints could likely contribute to rising transportation costs over the coming year. Now a new regulation could add even more pressure to the cost of shipping goods.

According to this report in the Gainesville Times, a federal rule passed in 2015 that mandates the electronic tracking of truck activity goes into effect April 1. The rule — which began for semitrailers last December — will pretty much hit all commercial trucking operators.

The regulation requires any truck traveling more than 150 miles a day to have an electronic logging device installed or the truck’s owner will face fines and could potentially lose its license to operate. The idea is to replace the manual logbooks that truckers have kept since the days of yore with something more real time and automatic.

Supporters of the law say it will increase safety for both the drivers and the public. Why? Because electronic records of drivers’ hours are more reliable and less susceptible to manipulation. Another big benefit is the data compiled by the devices, which can prove useful to configure more efficient routes and provide better customer service.

However, there are issues that could very well add more costs to a customer’s freight bill.

The devices will track all hours of a truck at work, even while it’s going to pick up cargo, which means less time could be available for the actual delivery before a break is required. In addition, the time logged by the devices would include when a driver is waiting — sometimes for hours — for cargo to be taken off a truck. Some say these changes will require more time to complete a delivery. Many small businesses are also reporting new headaches in monitoring the vast amounts of data collected, which is forcing them to hire outside firms to do the work and make sure they’re in compliance.

“It’s a terrible, terrible bill,” said Butch Miller, a Georgia state senator and the part owner of an auto dealership. “It’s going to drive up the cost of groceries. It’s going to drive up the cost of dry goods. It’s going to drive up the cost of appliances. It’s going to drive up the cost of clothes. It’s going to drive up the price of every single consumer product.”