The trucking industry was responsible for the movement of 71.4% of freight tonnage shipped in the US last year. (1) But what many do not know is the actual cost associated with moving these goods. Since 2008, the American Transportation Research Institute (ATRI) has been conducting an annual survey, analyzing the operational costs of trucking. Last week, ATRI released its 2018 fiscal year figures.
The report, “An Analysis of the Operational Costs of Trucking,” consisted of respondents of various fleet sizes. Only 6% of these respondents operated a fleet of less than 5 power units with most ranging in size from 26-100 units (29%) and 251-1000 units (21%). (1) 37% of respondents operated in a 100-500 mile radius and 26% were local, operating under 100 miles. (1)
The Below are ATRI’s Findings:
*The survey separated marginal costs into two categories: vehicle-based and driver-based.
*ATRI found that all line items costs in their survey increased in 2018 with the exception of tires, with fuel and driver compensation being the highest costs.
*Overall CPM increased to $1.821 (up 7.7%) with the cost per mile increasing to $71.78, which ATRI indicates as “the highest to date in ATRI’s Ops Costs data collection history.” Driver wages and benefits accounted for 43% of the CPM.
-Fuel (↑17.7%) Accounted for 24% of total costs.
-Insurance costs (↑12%)
-Driver wages (↑7.0%)
-Driver benefits (↑4.7%)
-Repair and maintenance costs (↑2.4%)
-Permits and licenses (↑4.3%)
*70% of carriers offered drivers some type of bonus with an average safety bonus of $1,238 (a 6% decrease from 2017). Bonuses for new drivers coming onboard, however, increased 11.5% to an average of $1,562.
*With the Dec. 2019 required date to make the switch to ELDs quickly approaching, the survey also inquired about ELD/AOBRD usage and costs. 31% of respondents at the time indicated utilizing ELDs, while 67% were using AOBRDs. This number has changed as recent stats show that the majority of AOBRD users switched to ELDs in the third quarter of 2019. The survey also found ELDs to be less expensive than AOBRDs with the average ELD unit fee being $757.81 with a $37.32/month subscription fee and AOBRD unit costing an average of $960.97 with a $39.32/month subscription fee.
Click here to view a copy of the report.
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*Relay velocity provides longer shelf life for products and more time for customers or distributors to spend with their customers.
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