2019 Logistics Forecast
2018 Tax Cuts, Regulations, & Innovations
In the freight industry, 2018 was a year for the record books. New corporate tax cuts led to new business investments and the ELD mandate heavily impacted supply chains everywhere. Industry changes included more strategic supply chain planning, tighter capacity across the board, safer driving initiatives, strict enforcement of the ELD, and much more. In addition, the Federal Motor Carrier Safety Administration (FMCSA) developed two measures to ease the transition into the new ELD mandate: 1) issuing waivers to specialized carriers, and 2) granting more time for compliance to fleets with legacy onboard tracking. New innovations also emerged, including the electrification of powertrain components and hydrogen fuel-cell vehicles.
Infrastructure & State Transportation Funding
However, one unaddressed issue in 2018 is federal funding progress on infrastructure. Despite this hold-up, a handful of states—including Nebraska, Michigan, Pennsylvania, and Ohio—implemented major spending infrastructure programs. Minnesota and Connecticut officials also pushed for improved funding. In other states like Colorado, Missouri, and Utah, transportation funding failed to be voted through. Furthermore, California voters decided to further increase their 2017 increase to diesel fuel tax increase from 20 cents per gallon to a much higher 36 cents per gallon.
2019 Supply Chain Implications
Overall, there is a general push by the FMCSA to create safer driving conditions with mandated ELDs. Corporate tax cuts are allowing companies to invest more revenue back into their supply chains to find the qualified help they need to navigate these new FMCSA regulations. There also seems to be a push for a more “green” supply chain. We are sure to see more changes on each of these fronts in 2019.
Furthermore, there seems to be a state-level push for higher infrastructure and transportation funding. Once the political environment cools down after the next tariff deadline with China in March, it is not far-fetched to assume there will be more federal attention to navigating infrastructure issues that the freight transportation industry faces every day.
BM2 Freight Services, Inc.
Phone: (859) 308-5100
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