Research
6.6% Increase in Trucking Operational Costs During Freight Recession
Adriana Pulley · June 28, 2024 · 1 min read
New research from ATRI shows costs are climbing quickly during this freight recession.
Key Stats:
Overall marginal costs hit $2.270 per mile in 2023
Non-fuel costs jumped 6.6% to $1.716 per mile
Truck insurance premiums leapt 12.5% to $0.099 per mile
What's Driving the Increase?
Rising Equipment Costs: Truck and trailer payments jumped up 8.8% to $0.360 per mile. With supply chain issues still lingering, don't expect prices to downshift anytime soon.
Driver Wages Accelerate: Paychecks grew by 7.6% to $0.779 per mile. Good news for drivers, but it's putting the squeeze on carriers.
Maintenance Costs Creep Up: Repair and maintenance expenses inched up 3.1% to $0.202 per mile. Every penny counts in this tight market.
Operational Headaches: Deadhead mileage hit 16.3% for non-tank operations, and driver turnover is on the rise.
Profits in the Slow Lane: With freight rates stuck in neutral, most fleets are seeing razor-thin margins. ATRI President Gregg Troian warns, "The current economic environment makes cost management essential to successful operations."
What's Next? If these trends continue, we might see smaller carriers merging or getting bought out. M&A activity is on the up and up.
Source: ATRI
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