The marginal cost of trucking was up a bit—0.8%—last year over 2022, according to the American Transportation Research Institute’s Analysis of the Operational Costs of Trucking: 2024 Update. However, costs are now at a record high of $2.270 per mile.
There was some good news in the report; fuel prices declined by 8.8 cents per mile. However, ATRI reported that insurance premiums and truck and trailer payments increased at higher rates.
There are some costs fleets have little control over, such as the cost of a truck and the cost of fuel. The cost of fuel may be beyond the control of a fleet, but there are steps fleets can take to get more miles out of a gallon. Spec’ing aerodynamic devices on the tractor and trailer, using low rolling resistance tires, optimizing engine parameters for fuel economy, limiting speed, and coaching drivers to drive in a fuel-efficient manner are just some of the things fleets can do to improve their mpg.
In the most recent ATRI study, repair and maintenance costs were up 3.1%. Fleets have some control over this area as well. Ensure preventive maintenance schedules are set according to the asset's age and duty cycle, and then ensure that preventive maintenance inspections and services take place as scheduled. In addition, fleets need to reinforce the importance of pre- and post-trip inspections with drivers. Problems that are identified and repaired before the truck leaves the yard help prevent on-road failures, which result in costly repairs.
See also: Industry costs increased more than 6% during freight recession, ATRI says
Margin insurance costs rose by 12.5% in 2023, which will come as no surprise to most fleets. Insurance premiums are based on a variety of factors, including loss history. Fleets can be proactive in reducing the number of accidents and their severity by spec’ing advanced driver assistance systems, such as collision mitigation systems, lane departure warning, blind spot indicators, and adaptive cruise control. In addition, drivers should be trained in safe driving practice, and fleets should have strict policies in place that govern seat belt and cell phone use.
Deadhead miles were also up from 15.4% in 2022 to 16.3% in 2023. Fleets should look for backhaul opportunities to reduce empty miles and optimize routes, which can help save fuel.
ATRI does not see any substantial improvement in the freight markets for the foreseeable future, so fleets need to take action to reduce costs where they can to improve their total cost of ownership.
ATRI’s Analysis of the Operational Costs of Trucking: 2024 Update provides fleets with a good starting point to see how they compare with industry averages and identify areas for improvement.
