Pricing Dynamics in the Truckload Sector: The Moderating Role of the Electronic Logging Device Mandate

This study investigated the potential moderating role of the 2017 electronic logging device (ELD) mandate in the relationship between spot market prices and contract prices for the truckload sector. The authors hypothesized that the ELD mandate should increase market participants' abilities to utilize spot price movements in contracting pricing. They created a database combining monthly spot price data from DAT Solutions with monthly contract pricing data from the Bureau of Labor Statistics for January 2013 through November 2019. They used a series of finite distributed lag time series regression models to observe the effects of spot price changes before and after the ELD mandate took effect. The results showed that contract prices have become more sensitive to changes in spot prices since the ELD mandate was implemented. It was concluded that spot prices have become a more influential leading indicator for contract prices. This development implies that carriers should pay close attention to spot price movements, as these changes are now more predictive of how contract prices will shift and are signs of a more efficient market for truckload services..

• Record URL:
  http://dx.doi.org/10.1111/jbl.12256
• Record URL:
  https://onlinelibrary.wiley.com/doi/abs/10.1111/jbl.12256
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/4304746
• Authors:
  • Miller, Jason W
  • 0000-0001-5731-640X
  • Scott, Alex
  • 0000-0003-1709-6654
  • Williams, Brent D
• Publication Date: 2021-10

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: pp 388-405
• Serial:
  • Journal of Business Logistics
  • Volume: 42
  • Issue Number: 4
  • Publisher: Wiley-Blackwell Publishers Limited
  • ISSN: 0197-6729
  • EISSN: 2158-1592
  • Serial URL: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)2158-1592

Subject/Index Terms

• TRT Terms: Contracts; Logging (Recording); Markets; Pricing; Time series; Trucking
• Subject Areas: Economics; Freight Transportation; Motor Carriers; Planning and Forecasting;

Filing Info

• Accession Number: 01831834
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 28 2021 9:37AM