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

June 25 Webinar; OUtlook for Freight and trade with Bob Costello

Register here At the end of last year, looking ahead to 2025, the trucking industry was cautiously optimistic about the potential for freight rates and demand to rebound. The first quarter of the year, however, was rougher than expected due to a number of adverse...

DOT issues dozens of deregulatory notices

Mark Schremmer The U.S. Department of Transportation is taking the first steps toward decreasing the regulatory burdens on trucking and other applicable industries. This week, the DOT announced more than 50 proposals or final rules aimed at streamlining the Code of...

DOT recommends rescinding or amending numerous FMCSA regs

The U.S. Department of Transportation last week announced 52 deregulatory actions across Federal Highway Administration (FHWA), Federal Motor Carrier Safety Administration (FMCSA), and National Highway Traffic Safety Administration (NHTSA). Of the 52 deregulatory...

Crash Causal Factors Program (CCFP)

The Crash Causal Factors Program (CCFP) is a detailed crash data collection and analysis effort intended to: Identify the key factors that contribute to crashes involving commercial motor vehicles (CMVs), Inform countermeasures to prevent these crashes, and Establish...

CATEGORIES