NEWS & REPORTS

Report: Fleet Operating Costs hit Nearly $72 an Hour in 2018

Dec 18, 2019 | Reports, Uncategorized

HDT Staff

Operating costs were up across the board last year, costing fleets an average of $71.78 per hour to run freight, according to the American Transportation Research Institute’s latest Operational Costs of Trucking report.

The 2019 update to ATRI’s report looked at trucking industry operating costs during 2018 which saw a robust economic environment for carriers and drivers. While times were good for fleets overall, the economic boom also put upward pressure on nearly every line-item cost center experienced by carriers, according to ATRI.

ATRI found that a good economy, difficulties in finding and keeping drivers,  and increased fuel and insurance prices all contributed to year-over-year cost increases. The average marginal cost per mile, which includes costs due to fuel, equipment, maintenance, insurance, permits, licenses, tires, tolls and driver wages and benefits, increased 7.7% in 2018 to $1.82 per mile.

Costs went up in every category except tires, and fuel costs saw the largest increase at 17.7%. Not far behind fuel cost increases, were insurance costs at 12%. Driver wages and benefits continued to make up the largest portion of operating costs and 2018 was a year of substantial driver pay increases industry wide.

Driver wages and benefits increased 7.0% and 4.7% respectively as a strategic response to the severe driver shortage that existed in 2018, according to ATRI. On an hourly basis, average costs due to driver wages increased from $21.97 to $23.50 in a single year. Benefits increased from $6.78 to $7.10 per hour. Wages and benefits represented 43% of all marginal costs in 2018.

Repair and maintenance costs increased 24% since 2012 to 17.1 cents per mile on average.

These numbers represent an average of the trucking industry, however ATRI’s report also analyzes costs by sector which can have varying costs due to the type of activity. Specialized carriers have the highest cost per mile at $2.02, with additional factors such as HazMat and OS/OW permit costs, complex maintenance requirements and higher driver compensation contributing to increased costs.

Truckload carriers have the lowest operating cost per mile at $1.71, despite a 14.8% increase from the previous year, mostly attributed to driver pay increases.

About the Author

NEWS & REPORTS

Pennsylvania Lawyer Employs Creative Strategy in Crash Case

Eric Miller The crash occurred on a chilly morning in Bensalem Township, Pa., between a tractor-trailer and a passenger vehicle traveling at what witnesses described as a “relatively fast speed.” The truck driver wasn’t injured, but the driver of the passenger car was...

AI Helps Fleets Navigate Risk Management

Stephen Bennett Insurance companies and brokers are finding the benefits in artificial intelligence to better assist trucking companies with their risk management needs. The technology has helped by quickly collecting and deploying data, enhancing safety and...

Have Trucking Insurance Premiums Peaked?

Mindy Long With the year more than halfway completed, there has been much concern about rising insurance premium costs. However, are we getting close to an environment in which those rates are leveling out or even reversing course? And what are the main factors to get...

GPS in the 1990’s

I friend of mine sent me this clip, mostly to make fun of my 90's computer monitor and 90's hair. Regardless, it's interesting to see how widely accepted #GPS technology has been accepted. Nobody is surprised, we all saw this coming. The same question remains, what...

CVSA Schedules Brake Safety Week for Aug. 20-26

Inspectors Will Focus on Brake Linings and Pad Violations   Eric Miller Inspectors will focus on brake linings and pad violations at this summer’s Brake Safety Week, scheduled for Aug. 20-26. During the special enforcement effort, commercial motor vehicle...

CATEGORIES