Trucking costs are going up, especially in the unscheduled maintenance, congestion, and toll sectors. Below is an overview of the current costs plaguing the trucking industry.
Truck Maintenance
According to a recent report released by the American Trucking Associations’ Technology & Maintenance Council and FleetNet America, the costs of truck repairs and maintenance rose to an average of 17.1 cents per mile (a 24% increase) from 2012 to 2018. Furthermore, unexpected roadside mechanical repairs reached an average of $407 in 2019’s third quarter, the highest since 2017, with tires, brakes, and lighting accounting for the greatest repair needs. (1)
The report, which analyzed the truckload, LTL and tank sectors, found a distinct correlation between breakdowns involving the “average” carrier versus the “best-in-class” carrier. The “average truckload fleet” had a greater number of roadside repairs, which also occurred within fewer miles, than “top truckload carriers.” (1) As FleetNet America’s Jim Buell notes, “This is a pretty good indication that our industry has room to reduce maintenance costs by closing the gap between the average and best-in-class fleets.” (1)
When looking for best-in-class local trucking companies, look no further. Those familiar with Road Scholar Transport know that we are an asset-based carrier whose brand is synonymous with security, technology, safety, and on time transportation, serving professionals within a next day service area who are investment grade and risk-adverse. Our core values and beliefs are as follows:
*Our first responsibility is to our customer (as individuals, their product, and their brand).
*We are committed to providing our customers with innovative tracking and security technology solutions at a fair return.
*We are committed to safety at our facilities and on roadways.
*We are committed to protecting the environment and energy efficiency.
Road Scholar Transport runs newer equipment that won’t break down. We do pre- and post-trip inspections and are proud to say that we never had a piece of faulty equipment involved in an accident. Our trucks are equipped with safety technology including electronic stability controls and anti-collision systems, adding an extra layer of safety for our drivers and your products.
Congestion
A report released by the American Transportation Research Institute found that truckers lost 1.2 billion in productivity due to sitting in traffic congestion, resulting in an industry loss of nearly $74.5 billion a year. (2)
The report took into consideration over 1 million heavy-duty trucks and more than 300 corridors, reporting on the top 100 bottlenecks in the country, with Fort Lee, NJ leading the list. (2) What’s worse, the report found that significant congestion rose 92% and traffic congestion 10% in the past five years (2).
While there is no stopping congestion from occurring, Road Scholar Transport incorporates procedures and technology onto our fleet to help prevent further delays.
Road Scholar has the ability to monitor and react to road conditions/reroute equipment. Our ShowMe feature allows us to use the Google Maps traffic congestion overlay to see where our trucks are and where traffic may affect delivery in order to choose the best route to avoid delays so that your product line in not on hold or reputation with your customer is not tainted.
Tolls
Over the last 10 years, the price of tolls has skyrocketed, increasing 72.5% and resulting in $14.7 billion in revenue in 2018, 81% of which derived from 21 toll systems, according to ATRI. Tolls cost CMV drivers an average of 45 cents per mile, so it’s no wonder that it is the second highest cost per mile for the trucking industry. (3)
Are in transit delays from your current carrier becoming an issue of concern? Let us know. Road Scholar Transport will do a free audit of your lanes and offer some suggestions on route optimization. Contact us today!
(1)https://talkbusiness.net/2020/02/unscheduled-repair-costs-continue-to-rise-in-trucking-industry/
(2)https://talkbusiness.net/2020/02/bottlenecks-cost-trucking-industry-more-than-74-billion-annually/
