NEWS & REPORTS

Mileage between breakdowns rises, but so do repair costs

Sep 20, 2021 | Articles

Jim Stinson

Dive Brief:

  • Labor costs for repair and maintenance increased 2.6% between Q1 and Q2, according to Decisiv’s and the American Trucking Associations’ Technology & Maintenance Council’s North American Service Event Benchmark Report. Overall, cost of parts increased by 2.8% in the same time period, with tires increasing 10.7% and the cost of transmission parts rising 9%.
  • But time between breakdowns is improving. TL carriers averaged 23,769 miles between breakdowns, up 8.8% from Q1, according to a survey by TMC and FleetNet America.
  • LTL carriers bettered their performance by 4.1% from Q1 to Q2, increasing to 46,186 miles from 44,380 miles, according to the TMC/FleetNet America survey. The tank sector had a 4.7% improvement, running 18,241 miles in Q2, up from 17,420 in Q1.

Dive Insight:

Unscheduled maintenance and breakdowns have been a rising cost issue since early 2020, but now the issue of inflation appears to be rearing its head. Costs have been spiraling upward for quite some time.

In June 2020, FleetNet reported Q1 2020’s cost for a mechanical repair was $491, 30% higher than repairs in Q4 2019.

The arrival of COVID-19 worsened the costs, not because the raw materials behind steel and rubber became more rare, but because the supply chain slowed at first and is now currently experiencing congested ports and backed-up orders.

Costs for actual parts are also going up, along with the labor costs associated with breakdowns and even regularly scheduled maintenance.

“The increases in costs for parts and labor reflect the changes taking place in the North American economy,” said Dick Hyatt, Decisiv president and CEO. “Ongoing economic growth has led to a rise in freight volume and demand for carrying capacity. That is also being driven higher by the need to replenish supply chains that have been depleted due to manufacturing and distribution shutdowns during the pandemic.”

Hyatt said increased transport demand pushed up vehicle mileage and usage.

The heavy parts, as well as the electrical parts, went up by doubles digits. Lighting systems increased 17.4% in Q2 from a year earlier, transmissions costs were up 16.4% in the same time frame, and brakes costs increased 11.1%.

Emily Hurst, manager of data and analytics at FleetNet, said fleets seeking to cut costs need to mimic the habits of the best-in-class fleets in the TL, LTL and tanker divisions.

Such habits could include reinforcement and better insulation put around electric wiring and lighting lines to prevent problems that put out lights.

The Decisiv/TMC North American Service Event Benchmark measures results in 7 million commercial vehicles operating in the United States and Canada, serviced by Decisiv’s SRM platform. The surveys on unscheduled maintenance and general costs were both released before TMC’s fall meeting.

About the Author

NEWS & REPORTS

TOP 5 ACCIDENT RESPONSE TIPS FOR DRIVERS

Doug Marcello - My colleague, Tiffany Peters, addresses what drivers should do after the accident. Accidents happen unexpectedly, even to the best drivers. Knowing what to do beforehand is critical. Proper accident response will better position you to defend yourself...

Navigating the aftermath: How to handle a truck-involved crash

Mark Murrell When one of your trucks is involved in a crash event, it’s a stressful situation. There’s a lot to manage between helping your driver and working with the other parties involved. The first thing that sets people on edge is the number of players involved....

THE ONLY ROAD TO TORT REFORM

THERE IS A ROAD TO TORT REFORM...AND WE ARE NOT ON IT.   Doug Marcello WHY IT MATTERS:  We have the power and ability to bring real tort reform by radically changing our approach and flexing our electoral power. WHY WE ARE FAILING:  Our current course for tort...

CVSA’s Upcoming Training Courses for Industry

Hazardous Materials Instructor Training Overview Virtual Courses CVSA will hold two Hazardous Materials Instruction Training (HMIT) Overview Courses. These virtual courses will introduce participants to a 10-step process that can be used to set up and implement an...

AT&T outage leads to ELD, tech concerns for truckers

Mark Schremmer A large-scale AT&T outage on Thursday, Feb. 22 raised questions about how truck drivers can remain compliant if their electronic logging device stops working. The short answer is that truckers may have to turn to paper logs to track hours of...

CATEGORIES