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ATRI Operational Costs of Trucking 2019 1

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We take content rights seriously. If you suspect this is your content, claim it here.
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An Analysis of the Operational

Costs of Trucking: 2019 Update


November 2019
An Analysis of the Operational Costs of Trucking:
2019 Update

November 2019

Dan Murray
Senior Vice President
American Transportation Research Institute
Minneapolis, MN

Seth Glidewell
Research Analyst
American Transportation Research Institute
Minneapolis, MN

950 N. Glebe Road, Suite 210


Arlington, Virginia 22203
TruckingResearch.org
ATRI BOARD OF DIRECTORS

Judy McReynolds Benjamin J. McLean


Chairman of the ATRI Board Chief Executive Officer
Chairman, President and Chief Ruan Transportation Management
Executive Officer Systems
ArcBest Corporation Des Moines, IA
Fort Smith, AR
Dennis Nash
Andrew Boyle Executive Chairman of the Board
Co-President Kenan Advantage Group
Boyle Transportation North Canton, OH
Billerica, MA
Clifton Parker
Hugh Ekberg President and General Manager
President and CEO G&P Trucking Company, Inc.
CRST International, Inc. Gaston, SC
Cedar Rapids, IA
James D. Reed
Darren D. Hawkins President and CEO
Chief Executive Officer USA Truck
YRC Worldwide Van Buren, AR
Overland Park, KS
Annette Sandberg
Dave Huneryager President and CEO
President and CEO Transsafe Consulting, LLC
Tennessee Trucking Association Davenport, WA
Nashville, TN
John A. Smith
Derek Leathers President and CEO
President and CEO FedEx Freight
Werner Enterprises Memphis, TN
Omaha, NE
Rebecca Brewster
Robert E. Low President and COO
President and Founder ATRI
Prime Inc. Atlanta, GA
Springfield, MO
Chris Spear
Rich McArdle President and CEO
President American Trucking Associations
UPS Freight Arlington, VA
Richmond, VA
ATRI RESEARCH ADVISORY COMMITTEE

Karen Rasmussen, RAC Don Lefeve Jeremy Reymer


Chairman President and CEO Founder and CEO
Chief Executive Officer Commercial Vehicle Training DriverReach
PrePass Safety Alliance Association
Lee Sarratt
Michael Ahart Kevin Lhotak Director of Safety
VP, Regulatory Affairs President J.B. Hunt
Omnitracs LLC Reliable Transportation
Specialists Mark Savage
Thomas A. Balzer, CAE Deputy Chief
President and CEO Mike Ludwick Colorado State Patrol
Ohio Trucking Association Bison Transport
Chief Administrative Officer Kary Schaefer
Shawn R. Brown General Manager of Marketing
Vice President of Safety Douglas B. Marcello, Esq and Strategy for Freightliner
Cargo Transporters Transportation Attorney and Detroit Brands
Marcello & Kivisto, LLC Daimler Trucks North
Kenneth Calhoun America, LLC
Fleet Optimization Manager Jaime Maus
Altec Service Group Vice President of Safety and Russ Simpson
Compliance America’s Road Team Captain
Alison Conway, Ph.D. Werner Enterprises, Inc. Holland
Assistant Professor
The City College of New York Caroline Mays Mike Stephens
Director, Freight and Vice President of Finance
Robert P. Costello International Trade Section USA Truck, Inc.
Chief Economist and Senior Texas DOT
Vice President, Collin Stewart
International Trade Policy and Shannon Newton President and CEO
Cross-Border Operations President Stewart Transport, Inc.
American Trucking Arkansas Trucking
Associations Association Sara Walfoort
Manager, Freight Planning
Dan Drella Steve Olson Southwestern Pennsylvania
Director, Safety and Training President and Chief Commission
Schneider National, Inc. Underwriting Officer
Great West Casualty Tom Weakley
James P. Fields Company Director of Operations
Chief Operating Officer Owner-Operator Independent
Pitt-Ohio, LLC Holly Pixler Drivers Association
Senior Director Foundation
Victoria King Transportation, Warehousing
VP, Public Affairs and International Shawn Yadon
UPS MillerCoors Chief Executive Officer
California Trucking
James Langley Mr. John Prewitt Association
President President
Trimble Transportation Tideport Distributing, Inc.

Stephen Laskowski Steven Raetz


President Dir. Research & Market
Canadian Trucking Alliance Intelligence
C.H. Robinson Worldwide, Inc.
ACKNOWLEDGEMENT

The American Transportation Research Institute (ATRI) would like to thank several
organizations for their important contributions to this research. Members of the National
Accounting and Finance Council (NAFC) of the American Trucking Associations provided
subject matter expert review of the data collection forms as well as provision of critical fleet
operational data. Both the National Private Truck Council and ACT Research provided expert
guidance and support on several key analyses used in this year's Ops Costs report.

An Analysis of the Operational Costs of Trucking:


4 2019 Update
TABLE OF CONTENTS

FIGURES AND TABLES........................................................................................................... 6


LIST OF ACRONYMS ............................................................................................................... 7
INTRODUCTION ....................................................................................................................... 8
RESEARCH OBJECTIVE ......................................................................................................... 8
METHODOLOGY ...................................................................................................................... 9
Representativeness .................................................................................................... 10
RESPONDENT DEMOGRAPHICS ......................................................................................... 11
Size of Operation ........................................................................................................ 11
Type of Operation ....................................................................................................... 12
Equipment................................................................................................................... 13
Alternative Fuels ......................................................................................................... 15
Fuel Efficiency ............................................................................................................ 16
MOTOR CARRIER COSTS..................................................................................................... 18
FINDINGS ............................................................................................................................... 18
Average Marginal Costs ..................................................................................................... 18
Line Item Costs .................................................................................................................. 22
Driver Compensation.......................................................................................................... 22
Driver Wages and Benefits ......................................................................................... 22
Driver Bonuses ........................................................................................................... 23
Looking Forward ......................................................................................................... 24
Fuel Costs .......................................................................................................................... 24
Looking Forward ......................................................................................................... 28
Equipment .......................................................................................................................... 28
Truck/Trailer Lease and Purchase Payments ............................................................. 28
Repair and Maintenance ............................................................................................. 29
Looking Forward ......................................................................................................... 31
Truck Insurance Premiums ......................................................................................... 31
Tires ............................................................................................................................ 32
Tolls ............................................................................................................................ 33
Permits and Special Licenses ..................................................................................... 33
Costs by Region ................................................................................................................. 34
Industry Sector in Focus: Tank Trucks ............................................................................... 35
Electronic Logging Device Costs ........................................................................................ 36
CONCLUSION ........................................................................................................................ 36
APPENDIX - OPERATIONAL COSTS OF DATA COLLECTION FORM ............................... 38

An Analysis of the Operational Costs of Trucking:


2019 Update 5
FIGURES AND TABLES

Table 1: For-Hire Industry Sector Breakout ........................................................................ 10


Figure 1: Respondent Fleet Size .......................................................................................... 11
Table 2: Respondent Revenue Statistics............................................................................. 12
Table 3: Respondent Trip Types, 2011 to 2018 Comparison ............................................. 12
Table 4: Respondent Truck VMT and National Truck Registrations by Region ............... 13
Table 5: Respondent Equipment Characteristics ............................................................... 14
Table 6: Respondent Equipment Trade Cycle ..................................................................... 14
Table 7: Use of Alternative Fuel Vehicles ............................................................................ 15
Table 8: Respondent Reported Fuel Economy Compared to Typical Operating Weight 17
Table 9: Average Marginal Costs per Mile, 2010-2018 ........................................................ 19
Table 10: Average Marginal Costs per Hour, 2010-2018 .................................................... 19
Table 11: Annual Change of Average Marginal Costs ........................................................ 20
Table 12: Share of Total Average Marginal Cost, 2010-2018 ............................................. 21
Table 13: Average Total Marginal Costs by Sector, 2010-2018 ......................................... 21
Figure 2: Driver Wages and Benefits per Mile, 2010-2018.................................................. 23
Table 14: Single Driver Bonus Pay by Type ........................................................................ 24
Figure 3: Diesel Price and ATRI Fuel Cost per Mile Index, 2006-2018 .............................. 25
Figure 4: Monthly U.S. On-Highway Diesel Prices, 2016-2018........................................... 26
Figure 5: Respondent Fuel Cost per Mile by Fleet Size ..................................................... 27
Figure 6: Respondent Lease/Purchase Payments per Mile, 2010-2018 ............................ 29
Table 15: Change in Annual VMT per Truck ........................................................................ 30
Table 16: Repair and Maintenance Costs by Sector, 2010-2018 ........................................ 30
Figure 7: Respondent Repair and Maintenance Cost per Mile by Fleet Size.................... 31
Figure 8: Respondent Truck Insurance Premium Costs per Mile by Fleet Size ............... 32
Figure 9: ATRI Tires and Fuel Cost CPM Indices, 2008-2018............................................. 33
Table 17: Average Marginal Cost per Mile by Region, 2018............................................... 34
Table 18: Tank Truck Average Marginal Costs per Mile, 2018 ........................................... 35
Table 19: ELD and AOBRD Costs ........................................................................................ 36

An Analysis of the Operational Costs of Trucking:


6 2019 Update
LIST OF ACRONYMS

AOBRD Automatic On-Board Recording Device


ATA American Trucking Associations
ATRI American Transportation Research Institute
CFO Chief Financial Officer
CNG Compressed Natural Gas
CPH Cost per Hour
CPM Cost per Mile
CSA Compliance, Safety, Accountability
EIA Energy Information Administration
ELD Electronic Logging Device
FHWA Federal Highway Administration
FMCSA Federal Motor Carrier Safety Administration
FPM Freight Performance Measures
HOS Hours-of-Service
LCV Longer Combination Vehicles
LNG Liquefied Natural Gas
LPG Liquefied Petroleum Gas
LTL Less-than-Truckload
MC Marginal Cost
MPH Miles per Hour
NPTC National Private Truck Council
NDA Non-Disclosure Agreement
NR Natural Rubber
Ops Costs Operational Costs
OS/OW Oversize/Overweight
P&D Pick-up and Delivery
RAC Research Advisory Committee
R&M Repair and Maintenance
SBR Synthetic Butadiene Rubber
TL Truckload
UMTRI University of Michigan Transportation Research Institute
VMT Vehicle Miles Traveled

An Analysis of the Operational Costs of Trucking:


2019 Update 7
INTRODUCTION

In 2008, the American Transportation Research Institute (ATRI) produced its first edition of An
Analysis of the Operational Costs of Trucking to provide accurate average marginal cost data
for the trucking industry. Initially, ATRI’s Research Advisory Committee (RAC) 1 identified the
research need for accurate trucking cost data based on the need to resolve current disparities
in various published documents. Outside sources reported industry costs as low as $22 per
hour and as high as $370 per hour. 2 The large discrepancies in estimated costs were the
result of inaccurate data and subjective metrics, such as “value-of-time” calculations.

Through conversations with industry experts, ATRI identified key components of the trucking
industry’s cost structure, and then developed a standard approach that quantified carrier costs
by fleet size, sector and region of operation. The objective of the research was to provide real-
world documentation of direct carrier costs for use as both a high-level benchmarking tool for
industry professionals and to provide reliable information for public sector freight planning
activities.

Based on the large number of requests for the first Analysis of the Operational Costs of
Trucking reports, ATRI now annually updates the “Ops Costs” data – making minor
adjustments and adding new metrics to the methodology as needed. Over the years, ATRI
has attempted to streamline the process for obtaining sensitive and proprietary fleet cost data
by expanding the options for submitting data. This report includes the most recent 2018 cost
data.

RESEARCH OBJECTIVE

ATRI’s Ops Costs research, first initiated in 2008, derives from the need for more accurate
trucking industry operational cost data by motor carriers and government transportation
planners. The primary metrics focus on marginal line item costs associated with per-mile or
per-hour operational costs. While previous outside studies have provided operational cost
measurements, many relied on modeled data and subjective value-of-time metrics that were
considered by industry experts to be inaccurate or subjective.
Minor modifications to the 2019 data collection process include ELD cost impacts. One of the
most valuable components of the Ops Costs research is the ability of users to monitor changes
in line item costs over time – based on the inclusion of historical cost data going back a
decade. Furthermore, the published data can be analyzed by sector, fleet size and other
industry stratifications. ATRI also uses these data in related ATRI analyses such as truck
parking, congestion impacts and the annual Top Truck Bottleneck Report.

1 ATRI’s Research Advisory Committee RAC is comprised of industry stakeholders representing motor carriers, trucking

industry suppliers, federal government agencies, labor and driver groups, law enforcement, and academia. The RAC is
charged with annually recommending a research agenda for the Institute.
2 Trego, Todd. “An Analysis of the Operational Costs of Trucking”. American Transportation Research Institute. Arlington,

VA. 2008

An Analysis of the Operational Costs of Trucking:


8 2019 Update
METHODOLOGY

ATRI continues to use a standardized data collection methodology. One question was added
to this year’s data collection form to provide insight into the financial burden placed on motor
carriers as a result of the Federal Motor Carrier Safety Administration (FMCSA) regulation
requiring the use of Electronic Logging Devices (ELDs). 3 Additionally, two questions were
modified to account for the growing utilization of truck driver bonuses and incentives.

The specific additions and changes to the 2019 data collection form were:

• New Question #1: Respondents were asked to submit their fleet’s use of electronic
logging technology. This question was added to provide information about the use and
cost of electronic logging technology in order to maintain compliance with the ELD
mandate.
• Expanded Question #1: Two response blocks for “Other Bonuses paid to single truck-
tractor drivers” were added to collect additional information about bonuses paid to solo
drivers.
• Expanded Question #2: Two response blocks for “Other Bonuses paid to team truck-
tractor drivers” were added to collect additional information about bonuses paid to team
drivers.

The 2019 data collection form can be found in the Appendix.

In addition to carrier and driver demographic information, the Ops Costs data collection form
asks for line item operational and financial metrics that relate to standard costs across carriers.
The data collection form is annually pretested with confidential stakeholders to determine its
reliability and applicability across the industry.

Due to the highly competitive nature of the trucking industry and the extreme sensitivity
associated with corporate finances and expenditures, the Ops Costs information was collected
confidentially from motor carriers, and the data is presented in aggregate form only. ATRI also
provided respondents with non-disclosure agreements (NDAs) when requested.

ATRI initiated the newest data collection process in April of 2019, with electronic forms being
distributed to a diverse group of for-hire industry stakeholders in all sectors of trucking,
including truckload (TL), less-than-truckload (LTL) and specialized fleets. To increase carrier
response rates, ATRI utilized targeted industry mailings and emails, news alerts, and coverage
in major industry news outlets. Many of the 50 State Trucking Associations also solicited
carrier participation from their respective memberships. Participants were able to submit data
via an online response form, email or fax. Each submission was carefully reviewed by the
research team; if any response was unclear, ATRI followed up with the respondent.
Responses were collected through the end of August 2019.

3 Federal Motor Carrier Safety Administration. General Information about the ELD Rule. Retrieved from Federal Motor Carrier

Safety Administration website: https://www.fmcsa.dot.gov/hours-service/elds/general-information-about-eld-rule

An Analysis of the Operational Costs of Trucking:


2019 Update 9
The Ops Costs research calculates an average marginal cost per mile (CPM) and average
cost per hour (CPH). These two primary metrics allow for year-over-year analyses, as well as
inter-industry comparisons. The CPH metric is converted from the CPM metric using an
industry-vetted 39.42 miles per hour (MPH) derived from industry GPS-generated data. 4 This
speed calculation is based exclusively on moving trucks, and is applicable to all roadways, not
just highway speeds.

To ensure representative data from Ops Costs submissions, ATRI weights survey responses
to reflect industry sector percentage shares of TL, LTL and specialized carriers. When
comparing ATRI’s response sample to the U.S. trucking industry, TL carriers were
underrepresented, while both LTL and specialized carriers were overrepresented (Table 1).

Table 1: For-Hire Industry Sector Breakout


ATRI Ops Costs U.S. Trucking
Industry Sector
Respondents Industry 5
Truckload 37% 55.7%
Less-than-Truckload 42% 28.7%
Specialized / Other 21% 15.6%

Cost metrics were also weighted, as necessary, using fleet sector type, fleet size and region of
operation. This process provides more accurate insight into subsets of the Ops Costs data,
such as the cost of operations by region or by industry sector. As with all data reported in this
study, these subsets were only presented in aggregated form to protect the confidential
information submitted by individual carriers.

Representativeness

The Ops Costs data collection form was completed by relevant and knowledgeable company
officials, including presidents, chief financial officers (CFOs), managers and accountants – all
with working knowledge of fleet costs, revenue and other pertinent information. Fleet trip types
include local pick-ups and deliveries (less than 100 miles) through national deliveries (greater
than 1,000 miles), and fleets carry a multitude of commodities in all regions of the United
States (U.S.) and Canada. In addition to geographic and commodity diversity, carrier fleet size
ranged from single-truck operations to fleets well over 1,000 trucks.

In summary, submissions to the annual Ops Costs research provide a representative industry
sample, encompassing all fleet sizes, commodities and business models within the for-hire
industry.

4 ATRI derived this speed using data from the ATRI Freight Performance Measures (FPM) program. ATRI analyzed one full

week of national FPM data in each of the four quarters in 2017 (February, May, August, October). This dataset consisted of
nearly 500 million truck speed data points. The 39.42 MPH figure is an update to the 39.98 MPH figure used in previous
iterations of this report, which was based on truck speed data from 2010. The average speed figure was also validated by
multiple motor carriers from various sectors of the industry. This speed figure more accurately represents an average
operational speed since it includes speeds in all types of operational conditions.
5 2018 Current Employment Statistics. United States Department of Labor, United States Bureau of Labor Statistics.

Available online: https://data.bls.gov/PDQWeb/ce

An Analysis of the Operational Costs of Trucking:


10 2019 Update
RESPONDENT DEMOGRAPHICS

Size of Operation

The carriers that submitted information for An Analysis of the Operational Costs of Trucking:
2019 Update consisted of 119,633 truck tractors, 6,232 straight-trucks and 460,825 trailers,
and accrued over 10 billion total operating miles. A decrease in non-revenue, or “deadhead,”
miles occurred with 16.6 percent of traveled miles being deadhead miles in 2018 compared to
20.7 percent in 2017. In terms of fleet size, approximately 39 percent of respondents operate
more than 250 power units while approximately 50 percent of respondents operate 100 power
units or less (Figure 1). Overall, the average fleet size is 1,271 power units.

Figure 1: Respondent Fleet Size

Less than 5 Power


Greater than 1,000 Units, 6%
Power Units, 18%
5 - 25 Power
Units, 15%

251 - 1,000 Power


Units, 21%
26 - 100 Power
Units, 29%

101 - 250 Power


Units, 11%

The gap between median fleet revenue ($25,995,161) and mean revenue ($403,334,886)
exemplifies the large variation in size distribution from carrier respondents – again reflecting
the higher percentage of small fleets (Table 2). Median metrics are provided as a secondary
measure to account for unintended bias associated with the impact that large carriers have on
the mean of the sample.

An Analysis of the Operational Costs of Trucking:


2019 Update 11
Table 2: Respondent Revenue Statistics

Percentile Revenue

75th Percentile $120,367,567


50th Percentile (Median) $25,995,161
25th Percentile $6,954,085
Average (Mean) $403,344,886

Type of Operation

Since 2011, the trucking industry has experienced a seven percentage point increase in short
trips, with 63 percent of all trips being less than 500 miles in 2018 (Table 3). Inter-regional
length hauls (500-1,000 miles) decreased five percentage points and national length hauls
(over 1,000 miles) decreased three percentage points over the 7-year period. This almost
certainly reflects e-commerce and driver shortage strategies (of shifting freight to shorter urban
trips) first identified by ATRI in its “E-Commerce Impacts on the Trucking Industry.”6

Table 3: Respondent Trip Types, 2011 to 2018 Comparison

2011 2018

Local pick-ups and deliveries (less than 100 miles) 19% 26%
Regional pick-ups and deliveries (100-500 miles) 36% 37%
Inter-regional pick-ups and deliveries (500-1,000 miles) 26% 21%
National (over 1,000 miles) 19% 16%

ATRI’s 2018 vehicle miles traveled (VMT) by region continues to be comparable to U.S. truck
registrations by region, with a slight overrepresentation of the Midwest and Southwest regions
of the U.S. (Table 4). The ATRI dataset is underrepresented by VMT in the West, where
longer trips may divert to rail, and in the Northeast, which may indicate a reluctance to operate
in areas with higher fixed costs created by traffic congestion, tolling and higher taxes. It may
also indicate the favorable tax and registration environment associated with base-stating trucks
in certain states, independent of the states in which they operate.

The most commonly reported commodities hauled in 2018 were construction and building
materials, general freight, agricultural products and automotive parts.

6 Hooper, A., & Murray, D. E-Commerce Impacts on the Trucking Industry. American Transportation Research Institute.

February 2019. Arlington, VA.

An Analysis of the Operational Costs of Trucking:


12 2019 Update
Table 4: Respondent Truck VMT and National Truck Registrations by Region

Ops Costs Respondent Share of U.S. Truck


Region
Share of Miles Traveled 7 Registrations 8

Midwest 27% 24%


Northeast 13% 16%
Southeast 27% 26%
Southwest 15% 11%
West 14% 23%

Equipment

The trucking industry hauled 11.49 billion tons of domestic freight in 2018, which is 71.4
percent of freight tonnage shipped in the U.S. 9 To haul that freight, truck tractors were
reported as the primary power unit used by the majority of Ops Costs participants, with 28-foot
and 53-foot trailers listed as the predominant trailer types. A total of 287,530 trailers were 28-
foot and 53-foot trailers, which is over half of the 460,825 total reported trailers. On average,
these trailers were 9.6 years old and 6.4 years old, respectively. The average annual miles
driven for truck tractors in 2018 was 91,506 miles and the average age of the tractors was 4.4
years (Table 5). While larger fleets typically turn tractors over more frequently than smaller
fleets, the preponderance of small fleets in the data scales the average tractor age upward.

In comparing year-over-year changes in equipment trade cycles (which is different from


average equipment age), motor carriers indicated that truck tractors were traded after seven
years (6.96 years) in 2018, compared to 7.6 years in 2017. While the trade cycle of truck
tractors decreased by 0.6 years, the average mileage of a tractor increased slightly from
89,804 miles in 2018 to 91,506 miles in 2019, a two percent increase from the previous year.

7 Column total will not sum to 100 percent since roughly 4 percent of VMT were reported in Canada.
8 “Table MV-9: Truck and Truck-Tractor Registration - 2017”; 2017 Highway Statistics Series. Office of Highway Policy
Information, Federal Highway Administration, United States Department of Transportation. April 2018. Available online:
https://www.fhwa.dot.gov/policyinformation/statistics/2017/pdf/mv9.pdf
9 “American Trucking Trends 2019.” American Trucking Associations. Arlington, VA. 2019.

An Analysis of the Operational Costs of Trucking:


2019 Update 13
Table 5: Respondent Equipment Characteristics

Number of Average Average Miles Driven


Equipment Type
Trucks / Trailers Age (Years) per Year per Truck

Straight Trucks 6,232 8.5 25,720


Truck Tractors 119,633 4.4 91,506
Total Trucks 125,865

28' Trailers 168,436 9.6


33' Trailers 633 5.7
45' Trailers 2,799 10.8
48' Trailers 22,159 7.2
53' Trailers 119,094 6.4
Tank Trailer 17,652 15.8
Flatbed Trailer 5,390 5.9
Auto Trailer 2 0.4
Refrigerated Trailer 18,869 3.9
Other Trailers 105,791 9.4
Total Trailers 460,825

In 2018, the trucking industry experienced a large increase in contract rates. 10 Generally
speaking, the gross revenue increases were used to increase driver compensation, reduce the
average fleet age, and cover the increasing costs of fuel and insurance. Ultimately, 2018
contract price increases were slightly higher than the rising costs, providing a slight
improvement in carrier operating margins from 2017 to 2018. Research published in ACT
Research’s “For-Hire Public TL Carrier database” corroborates that average carrier revenue
per mile increased 12 percent from 2017 to 2018 – more than offsetting the increased per mile
costs identified in this report. The delta between these figures directly enhanced carriers’
operating margins.

Table 6: Respondent Equipment Trade Cycle


Average Number of Average Miles Driven
Equipment Type
Years Until Replacement Until Replacement
Truck Tractors 7.0 700,000
Trailers 13.3

The continuing decline in truck tractor age is a direct result of record truck and trailer sales
over the last few years. Class 8 tractor sales skyrocketed in 2018, experiencing a 32.1 percent

10 Broughton, D. “Can Rates rise in 2019?” FreightWaves. December 12, 2018. Available online:

https://www.freightwaves.com/news/economics/will-trucking-rates-continue-rising

An Analysis of the Operational Costs of Trucking:


14 2019 Update
increase in year-over-year sales. 11 This trend began reversing in the 2nd quarter of 2019,
when the economy – and freight movement in general – softened. Class 4 through Class 6
trucks did not experience the same increase in year-over-year sales, rising only 2.5 percent
from 2017-2018. 12 The relatively small increase for straight truck sales is surprising given the
strong growth rate of e-commerce sales over that same time period. In terms of trailer sales,
according to ACT Research, trailer sales hit 385,794 in 2018 – a healthy 15.3 percent increase
over 2017 figures.

Alternative Fuels

In 2018, 13 percent of carriers reported using alternative fuel vehicles (fuels other than diesel
or biodiesel), a three percentage point increase from 2017. Compressed natural gas (CNG)
was the predominant alternative fuel – accounting for 76 percent of the respondents’
alternative fuel truck tractors. Other fuels such as liquefied natural gas (LNG) and liquefied
propane gas (LPG) were also reported, but represented a small percentage of the total
sample. When the Ops Costs alt fuel data is compared to a 2016 fuel economy study jointly
developed by ATRI and the University of Michigan Transportation Research Institute (UMTRI),
the Ops Costs alt fuel vehicles are comparable, further confirming the representativeness of
ATRI’s sample of alt fuel vehicles (Table 7).

Table 7: Use of Alternative Fuel Vehicles


Percent of ATRI Ops Percent Fuel Type Usage
Alternative Fuel Type Costs Respondents by Fleets in ATRI/UMTRI
Using Alternative Fuels Research 13
CNG 10.1 18.5
LNG 4.0 5.1
Electric 1.0 3.8
LPG 1.0 2.6

Despite the increased usage of alt fuel vehicles, alt fuel truck tractors only accounted for, on
average, six percent of any given carrier’s fleet that reported using them. The high initial
investment costs combined with relatively low diesel prices since 2016 presented little
incentive to switch to alternative fuels. The elevated interest in alternative fuels that existed
prior to 2013 waned with major decreases in fuel prices. 14 For many fleets, diesel truck
tractors provide consistent and reliable operations that were favorable to investing in alt fuel
vehicles. While LPG maintenance is similar to diesel maintenance, CNG storage and
maintenance requires specialized mechanics and CNG certifications for maintenance
11 “Class 8 Trucks Sales Rise 21.8% in November.” Transport Topics. December 13, 2018. Available Online:

https://www.ttnews.com/articles/class-8-truck-sales-rise-218-november
12 “American Trucking Trends 2019.” American Trucking Associations. Arlington, VA. 2019.
13 Schoettle, B., Sivak, M., & Tunnell, M. “A Survey of Fuel Economy and Fuel Usage by Heavy-Duty Truck Fleets.” University

of Michigan Transportation Research Institute. Ann Arbor, MI. October 2016


14 Avila, Larry. “Trucking Companies Remain Committed to Alternative Fuels Despite Low Diesel Prices.” Transport Topics.

February 6, 2017. Available online: https://www.ttnews.com/articles/trucking-companies-remain-committed-alternative-fuels-


despite-low-diesel-prices

An Analysis of the Operational Costs of Trucking:


2019 Update 15
facilities. 15,16 The alt fuel versus diesel considerations may change, as diesel prices continue
to rise. In January 2019, diesel fuel averaged $2.98 per gallon, while the equivalent amount of
CNG cost $2.48 and the equivalent amount of LNG cost $2.71. 17

Government agencies continue to promote shifts to alternative fuels, primarily through


incentives, disincentives and information sharing. In 2019, California introduced a voucher
program, providing up to $60,000 per truck tractor for eligible carriers to ease the higher cost of
alternative fuel trucks. 18 Construction of new CNG fueling stations also increased, totaling
more than 1,000 in 2019. 19 These factors, alongside decreasing transport distances and
recovering diesel prices, may spur the purchase of alternative fuel trucks.

Additionally, the dramatic increase in e-commerce has increased local truck trips, making
overnight recharging of electric trucks much more feasible and making electric trucks more
viable. As such, electric trucks (as well as alt fuel trucks) are being increasingly utilized in the
local delivery market. 20

Even though alternative fuel vehicles only represent a small portion of vehicles in carrier fleets,
their increasing use indicates that the competitive margins with diesel trucks are narrowing.

Fuel Efficiency

Although more sophisticated engineering and technology components play a key role in
improved fuel efficiency, the overall fuel economy of trucks continues to lag in ATRI’s sample.
There was no improvement in average miles per gallon (MPG) from 2017 to 2018 – remaining
at 6.4 MPG. Rising fuel prices should continue to encourage investment in more efficient
vehicles; however, high upfront purchase costs make the incremental fuel savings a
speculative investment. Based on the mean age of tractors in the sample and the dramatic
increase in trucks sales in 2018, fuel economy is certain to improve over the next few years.

Close management of truck speeds can help with fuel economy. Speed governors (along with
adaptive cruise control) can increase MPG when utilized effectively. The large majority of Ops
Costs participants that utilize speed governors (90%, up from 86% in 2017) saw a nearly one
MPG improvement (from 5.6 MPG to 6.4 MPG) in fuel economy. Of those respondents using
speed governors, 88 percent utilized speed limiters on their entire fleet. The continuing

15 Ibid.
16 LeSage, Jon. “Alternative Fuel Vehicles Study.” Metropolitan Government of Nashville and Davidson County, Department of
General Services, Office of Fleet Management. Retrieved from
https://www.nashville.gov/Portals/0/SiteContent/GeneralServices/docs/fleet/Alternative%20Fuel%20Vehicles%20Study%205-
15-15.pdf
17 U.S. Department of Energy, Energy Efficiency & Renewable Energy. “Clean Cities Alternative Fuel Price Report.”

Washington, D.C. January 2019.


18 “2019 Voucher Incentive Program, On-Road Heavy Duty Vehicles.” South Coast Air Quality Management District. May

2019. Diamond Bar, CA. Available Online: http://www.aqmd.gov/docs/default-source/VIP/vip_brochure_english.pdf?sfvrsn=23


19 Natural Gas Fueling Stations. Alternative Fuels Data Center, Office of Energy Efficiency & Renewable Energy, U.S.

Department of Energy. September 2019. Available online: https://afdc.energy.gov/fuels/natural_gas_stations.html


20 Roberts, Jack. “Why Electric Trucks? Why Now?” Truckinginfo. August 2018. Available Online:

https://www.truckinginfo.com/312230/why-electric-trucks-why-now

An Analysis of the Operational Costs of Trucking:


16 2019 Update
increase in use of speed limiting devices will have a positive effect on fuel economy as more
fleets move toward installing devices in 100 percent of power units.

While fuel economy remained stagnant from 2017 to 2018, a breakout by operating weight
(Table 8) shows MPG rose for trucks operating over 80,000 pounds, seeing an increase to 5.5
MPG (from 4.9 MPG in 2017). Interestingly, trucks operating between 20,001 and 60,000
pounds saw a decrease in fuel economy of 0.4 MPG on average (from 7.0 MPG in 2017 to 6.6
MPG in 2018).

Table 8: Respondent Reported Fuel Economy by Typical Operating Weight

Typical Operating Weight MPG

Less than 20,000 lbs 6.4


20,001 - 40,000 lbs 6.6
40,001 - 60,000 lbs 6.6
60,001 - 80,000 lbs 6.3
Greater than 80,000 lbs 5.5

An Analysis of the Operational Costs of Trucking:


2019 Update 17
MOTOR CARRIER COSTS

There are numerous factors that can influence motor carrier operational costs – and numerous
direct and indirect relationships between line item costs – making cost analyses challenging
and complex. In the case of driver compensation, labor costs shift up or down based on driver
experience, safety performance, and different compensation models. Similarly, insurance is
another highly variable cost center within the industry due to rate structures that vary between
industry segments and different risk models across motor carriers. However, ATRI has worked
closely with motor carriers and panels of industry experts to identify those driver and vehicle
costs that effectively represent a motor carrier’s marginal costs (MC).

In order to remain consistent with the previous operational cost analyses, marginal costs were
divided into two general categories, vehicle- and driver-based, comprised of the following
major line item cost centers:

• Vehicle-based
o Fuel
o Truck/Trailer Lease or Purchase Payments
o Repair and Maintenance
o Truck Insurance Premiums
o Permits and Special Licenses
o Tolls

• Driver-based
o Wages
o Benefits

FINDINGS

Average Marginal Costs

With the exception of tires, all line item cost centers measured in ATRI’s Ops Costs report
experienced increases from 2017 to 2018. The overall CPM increased 7.7 percent to $1.821
(Table 9). The two highest cost centers, fuel and driver compensation, continue to exert
upward pressure on the overall CPM as both experienced large increases in 2018. The cost
per hour increased to $71.78 in 2018 (Table 10). These costs represent the highest to date in
ATRI’s Ops Costs data collection history.

An Analysis of the Operational Costs of Trucking:


18 2019 Update
Table 9: Average Marginal Costs per Mile, 2010-2018
Motor Carrier Costs 2010 2011 2012 2013 2014 2015 2016 2017 2018
Vehicle-based
Fuel Costs $0.486 $0.590 $0.641 $0.645 $0.583 $0.403 $0.336 $0.368 $0.433
Truck/Trailer Lease or Purchase
$0.184 $0.189 $0.174 $0.163 $0.215 $0.230 $0.255 $0.264 $0.265
Payments
Repair & Maintenance $0.124 $0.152 $0.138 $0.148 $0.158 $0.156 $0.166 $0.167 $0.171
Truck Insurance Premiums $0.059 $0.067 $0.063 $0.064 $0.071 $0.074 $0.075 $0.075 $0.084
Permits and Licenses $0.040 $0.038 $0.022 $0.026 $0.019 $0.019 $0.022 $0.023 $0.024
Tires $0.035 $0.042 $0.044 $0.041 $0.044 $0.043 $0.035 $0.038 $0.038
Tolls $0.012 $0.017 $0.019 $0.019 $0.023 $0.020 $0.024 $0.027 $0.030
Driver-based
Driver Wages $0.446 $0.460 $0.417 $0.440 $0.462 $0.499 $0.523 $0.557 $0.596
Driver Benefits $0.162 $0.151 $0.116 $0.129 $0.129 $0.131 $0.155 $0.172 $0.180
TOTAL $1.548 $1.706 $1.633 $1.676 $1.703 $1.575 $1.592 $1.691 $1.821

Table 10: Average Marginal Costs per Hour, 2010-2018


Motor Carrier Costs 2010 2011 2012 2013 2014 2015 2016 2017 2018
Vehicle-based
Fuel Costs $19.41 $23.58 $25.63 $25.78 $23.29 $16.13 $13.45 $14.50 $17.07
Truck/Trailer Lease or Purchase
$7.37 $7.55 $6.94 $6.52 $8.59 $9.20 $10.20 $10.39 $10.45
Payments
Repair & Maintenance $4.97 $6.07 $5.52 $5.92 $6.31 $6.23 $6.65 $6.58 $6.72
Truck Insurance Premiums $2.35 $2.67 $2.51 $2.57 $2.89 $2.98 $3.00 $2.95 $3.32
Permits and Licenses $1.60 $1.53 $0.88 $1.04 $0.76 $0.78 $0.88 $0.92 $0.95
Tires $1.42 $1.67 $1.76 $1.65 $1.76 $1.72 $1.41 $1.50 $1.50
Tolls $0.49 $0.69 $0.74 $0.77 $0.90 $0.79 $0.97 $1.05 $1.17
Driver-based
Driver Wages $17.83 $18.39 $16.67 $17.60 $18.46 $19.95 $20.91 $21.97 $23.50
Driver Benefits $6.47 $6.05 $4.64 $5.16 $5.15 $5.22 $6.18 $6.78 $7.10
TOTAL $61.90 $68.21 $65.29 $67.00 $68.09 $62.98 $63.66 $66.65 $71.78

An Analysis of the Operational Costs of Trucking:


2019 Update 19
Between 2017 and 2018, total average marginal costs in the trucking industry continued to far
outpace inflation – growing at 7.7 percent overall (Table 11). 21 These costs were pushed
upward by rising diesel fuel prices, insurance premiums, toll rates, and higher driver wages.
Table 11: Annual Change of Average Marginal Costs
2017-2018
Motor Carrier Costs
Change
Vehicle-based
Fuel Costs 17.7%
Truck/Trailer Lease or Purchase Payments 0.4%
Repair & Maintenance 2.4%
Truck Insurance Premiums 12.0%
Permits and Licenses 4.3%
Tires 0.0%
Tolls 11.1%
Driver-based
Driver Wages 7.0%
Driver Benefits 4.7%
TOTAL 7.7%

Driver wages and benefits continue to be the number one cost for motor carriers, accounting
for 43 percent of the costs per mile (Table 12). The driver wages increase in 2018 represents
the sixth yearly increase in driver wage CPM. Fuel costs increased to 24 percent of total
costs, a two-percentage point increase from 2017. While fuel and total driver compensation
account for 67 percent of costs, it is important to monitor cost growth rates; year-over-year
insurance cost increases of 12 percent are second only to fuel at 17.7 percent (Table 11).

Recognizing the different operating conditions for each industry sector (e.g. truckload, less-
than-truckload and specialized), this analysis breaks out motor carrier costs by sector (Table
13).

Carriers in the specialized sector (e.g. tank trucks, flatbeds) have the highest cost per mile.
Factors such as HazMat and OS/OW permit costs, complex maintenance requirements and
higher driver compensation all contribute to the increased costs when compared to TL and LTL
carriers. In contrast, truckload carriers have the lowest operating cost of $1.71 CPM, despite a
14.8 percent increase from the previous year. This large increase was driven primarily by
driver compensation, as carriers continue to vie for drivers.

21 “CPI-All Urban Consumers (Current Series).” U.S. Bureau of Labor Statistics, U.S. Department of Labor. 2018.

An Analysis of the Operational Costs of Trucking:


20 2019 Update
Table 12: Share of Total Average Marginal Cost, 2010-2018

Motor Carrier Costs 2010 2011 2012 2013 2014 2015 2016 2017 2018

Vehicle-based
Fuel Costs 31% 35% 39% 38% 34% 26% 21% 22% 24%
Truck/Trailer Lease or
12% 11% 11% 10% 13% 15% 16% 16% 15%
Purchase Payments
Repair & Maintenance 8% 9% 8% 9% 9% 10% 10% 10% 9%
Truck Insurance Premiums 4% 4% 4% 4% 4% 5% 5% 4% 5%
Permits and Licenses 3% 2% 1% 2% 1% 1% 1% 1% 1%
Tires 2% 2% 3% 2% 3% 3% 2% 2% 2%
Tolls 1% 1% 1% 1% 1% 1% 2% 2% 2%
Driver-based
Driver Wages 29% 27% 26% 26% 27% 32% 33% 33% 33%
Driver Benefits 10% 9% 7% 8% 8% 8% 10% 10% 10%
TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100%

Table 13: Average Total Marginal Costs by Sector, 2010-2018

Sector 2010 2011 2012 2013 2014 2015 2016 2017 2018

LTL $1.76 $1.93 $1.79 $1.84 $1.83 $1.60 $1.74 $1.84 $1.90
Specialized /
$1.61 $1.79 $1.73 $1.67 $1.85 $1.72 $1.83 $1.95 $2.02
Other
TL $1.43 $1.57 $1.51 $1.60 $1.58 $1.50 $1.42 $1.49 $1.71

An Analysis of the Operational Costs of Trucking:


2019 Update 21
Line Item Costs

Driver Compensation

Driver compensation, including wages, benefits and bonuses, has been the biggest line item
cost for carriers since 2014, even during periods of decreasing overall marginal cost.

The truck driver shortage, which is the primary force behind the compensation growth, ranked
as the top issue in ATRI’s 2019 Top Industry Issues Report. 22 For reference, the American
Trucking Associations (ATA) estimated that the driver shortage was 60,800 at the end of 2018,
and if current trends were to continue, the shortage could grow over 160,000 drivers by
2028. 23 The ongoing shortage continues to plague the trucking industry by limiting carriers’
ability to accept freight due to lack of available drivers.

Exacerbating the current shortage, the trucking industry has experienced a relatively low
success rate for attracting new drivers into the industry. ATRI’s 2014 study on driver
demographic trends identified that the trucking industry was failing to attract young drivers to
replace retiring baby boomers. 24 A more recent ATRI analysis of census data on employment
sectors documents that the trucking industry has the lowest percentage of young entrants and
the highest percentage of aging workforce entrants. 25

With 55.3 percent of trucking’s workforce being 45 and older, and less than five percent of
drivers in the 20 to 24 year old age range, the driver shortage will continue to worsen as older
drivers approach retirement. 26 Together, these two factors create a severe strain on nearly all
motor carriers as they struggle to fill their ranks with qualified drivers.

Driver Wages and Benefits

Since 2012, driver wages and benefits have steadily increased in an effort to attract and retain
qualified drivers, as well as to compensate for detention times, traffic congestion, and
regulations that negatively impact a driver’s income (Figure 2). Wages are currently at 59.6
cents per mile – a 43 percent increase since 2012. In the same time period, drivers saw a 55
percent increase in benefits, for a total driver compensation of 77.6 cents per mile on average.
This compensation includes medical, dental, vision coverage, and in some cases, 401(k)
matching. This suggests that carriers see the necessity of including benefits similar to other
industries to attract new drivers.

22 “Critical Issues in the Trucking Industry – 2019.” American Transportation Research Institute. Arlington, VA. October 2019.
23 Costello, Bob and Alan Karickhoff. “Truck Driver Shortage Analysis 2019.” American Trucking Associations. July 2019.
24 Short, Jeffrey. “Analysis of Truck Driver Age Demographics Across Two Decades.” American Transportation Research

Institute. Arlington, VA. December 2014.


25 “Employed persons by detailed industry, sex, and age, Annual Average 2018” U.S. Census Bureau – Current Population

Survey.
26 Ibid.

An Analysis of the Operational Costs of Trucking:


22 2019 Update
Figure 2: Driver Wages and Benefits per Mile, 2010-2018
$0.90

$0.80

$0.70

$0.60

$0.50

$0.40

$0.30

$0.20

$0.10

$0.00
2010 2011 2012 2013 2014 2015 2016 2017 2018

Driver Wages Driver Benefits

When broken out by sector, LTL drivers received the highest total compensation at 94.7 cents
per mile. Specialized drivers received 77.8 cents per mile in total compensation, reflecting the
additional skill and credentials required to move non-standard equipment, such as tank-trailers
or oversized flatbed trailers. Truckload carriers reported the lowest compensation, totaling
68.2 cents per mile.

Driver Bonuses

Seventy percent of carriers offered some type of bonus in 2018. The most common incentives
were safety, starting, and retention bonuses.

In 2018, safety bonuses averaged $1,238, a surprising six percent decrease from the $1,317
reported in 2017 (Table 14). Starting bonuses saw an 11.5 percent increase to $1,562 in
2018, which is understandable as sign-on bonuses are a leading tool used to recruit new
drivers.

An Analysis of the Operational Costs of Trucking:


2019 Update 23
Table 14. Single Driver Bonus Pay by Type

Annual
Bonus Type 2017 2018
Change (%)
Safety $1,317 $1,238 -6.0%
Starting $1,401 $1,562 11.5%
Retention $836 27 $672 -19.6%

The average increase in starting bonuses provides further evidence that carriers are struggling
to attract new drivers, and are using incentives beyond base compensation to appear more
attractive to prospective applicants.

Recognizing that driver retention was the number two issue for motor carriers on ATRI’s 2019
Top Industry Issues report, 28 retention bonuses are a primary tool for keeping good drivers. In
2018, truck driver retention bonuses averaged $672, down 19.6 percent from the $836
reported in the 2018 report. It appears that larger fleets maintained or increased retention
bonuses from 2017 to 2018, but small-to-medium fleets decreased retention bonuses in that
same time period. Among the smaller fleets, it appears that the retention bonus revenue was
wrapped into higher driver base pay. This is likely a positioning strategy for addressing the
driver shortage among smaller fleets, albeit a potentially risky strategy when economic
conditions soften.

Looking Forward

With continued demand for freight, contract prices should maintain stability in 2019; however,
spot market prices will remain volatile. External economic and geopolitical issues will create
enough uncertainty that longer-term economic predictions will be challenging.

Presuming that issues such as trade agreements are positively resolved, there is an
expectation that a recession can be avoided and growth will recover in the latter half of 2019
through 2020. In that “freight rebound” scenario, driver compensation is expected to rise in
response to the high demand for truck drivers, and will be a large part of overall costs that a
carrier incurs. As noted above, starting bonuses are one tool used to attract drivers, but until
the driver shortage is quelled by an increase in new entrants, wages and benefits increases
may only serve to increase driver “churn” across carriers.

Fuel Costs

Fuel costs are the second highest line item for carriers behind driver compensation. In
providing data for fuel CPM, carriers were asked to exclude any fuel surcharges because the
introduction of recoverable expenses would result in an inaccurate representation of the

27 Revised from figure published in 2018 report to address mid-year changes.


28 “Critical Issues in the Trucking Industry – 2019.” American Transportation Research Institute. Arlington, VA. October 2019.

An Analysis of the Operational Costs of Trucking:


24 2019 Update
carriers’ per mile costs. After excluding surcharges, the revenues spent on fuel per mile can
be compared across the trucking industry.

ATRI’s carrier fuel cost index links closely with diesel prices, which has been consistent since
the first ATRI study in 2008 (Figure 3). After relatively low diesel pricing in 2016 and early
2017, the diesel market regained pricing in the fourth quarter of 2017 and through 2018, with
only a slight dip in market prices during November and December of 2018. As trucking is
heavily dependent on diesel fuel, carriers are negatively impacted by market volatility. Small-
to medium-sized carriers are particularly vulnerable as they usually do not hedge prices nor
justify large-volume pricing discounts from fuel stops. In 2008, carriers paid more than 63
cents per mile as diesel prices skyrocketed. 29 In contrast, carriers only paid 33.6 cents per
gallon in 2016 as prices fell considerably. 30

Figure 3: Diesel Price and ATRI Fuel Cost per Mile Index, 2006-2018
160

150

140

130
Index (100 = 2006)

120

110

100

90

80

70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Diesel Price Index ATRI Fuel CPM Index

There has generally been an upward trend in fuel prices since February of 2016, which peaked
in October of 2018 at $3.394 (Figure 4). From 2017 to 2018, the average weekly price of
diesel increased from $2.650 to $3.179 – a 20 percent increase. Consequently, in this latest
report, fuel CPM increased by 17.7 percent for carriers, from 36.8 cents per mile in 2017 to
43.3 cents per mile in 2018 (Table 9).

29 Gasoline and Diesel Fuel Update. U.S. Energy Information Administration. Available Online:

http://www.eia.gov/petroleum/gasdiesel
30 Ibid.

An Analysis of the Operational Costs of Trucking:


2019 Update 25
Starting in February of 2016, fuel prices rose steadily throughout the year, reaching a peak of
$2.54 per gallon in the last week of December 2016. 31 Nonetheless, diesel prices remained
well below the average from the previous 10 years ($3.31 per gallon). 32

Figure 4: Monthly U.S. On-Highway Diesel Prices, 2016-2018

$3.50

$3.30

$3.10

$2.90

$2.70

$2.50

$2.30

$2.10

$1.90
Mar 04, 2016

Mar 04, 2017

Mar 04, 2018

Sep 04, 2018

Nov 04, 2018


Sep 04, 2016

Nov 04, 2016

Sep 04, 2017

Nov 04, 2017


May 04, 2016

May 04, 2017

May 04, 2018


Jul 04, 2016

Jul 04, 2017

Jul 04, 2018


Jan 04, 2016

Jan 04, 2017

Jan 04, 2018

Since that time, a number of factors have contributed to the continued increase in diesel fuel
prices. The U.S. economy in 2017 and 2018 would be described as robust, with GDP growth
rates exceeding 2.5 percent in both years (with the first quarter of 2019 exceeding 3.2
percent). As a result, diesel prices climbed based on growing demand and consumption.

In 2018, renewed sanctions on Iranian oil restricted the supply of oil to the U.S. and domestic
production did not ramp up quickly enough to offset rising prices. 33 In addition, political
uncertainty in Venezuela and the related U.S. embargo also had a likely role in oil price
volatility. 34 However, prices are still well below the $4.50 per gallon experienced in July 2008.

Diesel costs peaked in 2013 as the largest expenditure for motor carriers in ATRI’s Ops Costs
research data. Since then, driver wages have continuously surpassed fuel as the highest cost
center.

31 Ibid.
32 Ibid.
33 Jaffe, Amy M. “What Effects Will Tighter U.S. Sanctions on Iran’s Oil Have?” Council on Foreign Relations. April 25, 2019.
34 Salama, Vivian. “U.S. Expands Sanctions Against Venezuela Into an Embargo.” Wall Street Journal. August 5, 2019.

An Analysis of the Operational Costs of Trucking:


26 2019 Update
Within the ATRI data, multiple factors influence fuel CPM, including industry sector, vehicle
configurations, commodities hauled and average truck age. Specialized carriers experienced
the highest fuel costs at 48.6 cents per mile, followed by TL carriers at 42.5 cents per mile and
LTL carriers at 42.1 cents per mile.

Larger fleets have more bargaining power, and are able to better leverage their position and
capital to maximize routes through efficient planning. They also often have newer equipment.
These impacts are shown in Figure 5, where fleets with over 100 power units have lower fuel
costs per mile.

Figure 5: Respondent Fuel Cost per Mile by Fleet Size

$0.600

$0.506 $0.498
$0.500 $0.482
$0.446
$0.417
$0.391
$0.400

$0.300

$0.200

$0.100

$0.000
Less than 5 5-25 Power 26-100 Power 101-250 Power 251-1,000 Greater than
Power Units Units Units Units Power Units 1,000 Power
Units

An Analysis of the Operational Costs of Trucking:


2019 Update 27
Looking Forward

International embargos and trade restrictions could possibly restrict the supply of imported oil,
which could drive up the price of diesel fuel and petroleum futures in the U.S. The forecast is
highly speculative as the ability to turn up domestic production is contingent on minimum
prices per barrel; $50 per barrel is often considered a necessary target price. 35

Equipment

Carriers’ equipment-related purchase or lease decisions have direct effects on several other
cost centers. Equipment purchasing decisions and trade cycles directly affect lease and
purchase payments, repair and maintenance costs, and fuel efficiency. These same decisions
will likely impact insurance rates, as replacement costs on newer vehicles are typically higher.
As equipment prices increase, carriers may have to forego other expenditures such as optional
onboard safety systems. All of these actions will directly impact the average marginal CPM for
equipment costs.

Truck/Trailer Lease and Purchase Payments

Truck and trailer payments are classified as a quasi-operational cost, since equipment
purchases made during 2018’s strong economy must still be paid for using operating revenue,
even if the truck is not operated due to a decrease in demand. Consequently, purchase costs
are included since per-mile IFTA-related revenue is necessary to cover this line item. Carriers
have reported increasing lease or purchase payments since 2013, which continues into 2018.
Lease or purchase payments increased from 26.4 cents in 2017 to 26.5 cents per mile in 2018
(Figure 6).

More specifically, growth of lease or purchase payments is almost certainly related to the
higher costs for heavy duty trucks. Since 2010, heavy duty truck prices have steadily
increased; however, in 2018 prices remained stagnant from the previous year. 36 The relatively
small increase from 2017 to 2018 is masked by the larger cost increases experienced in the
previous three years. By 2018, it appears that a price balance between high equipment
demand and willingness-to-pay has been reached. Based on preliminary 2019 data and the
economic softening of the 3rd quarter, this price stability will likely continue.

35 Jaffe, Amy M. “What Effects Will Tighter U.S. Sanctions on Iran’s Oil Have?” Council on Foreign Relations. Washington,
D.C. April 25, 2019.
36 “Producer Price Index by Industry: Heavy Duty Truck Manufacturing.” Federal Reserve Bank of St. Louis. St. Louis, MO.

Retrieved September 25, 2019. Available Online: https://fred.stlouisfed.org/series/PCU3361203361202

An Analysis of the Operational Costs of Trucking:


28 2019 Update
Figure 6: Respondent Lease/Purchase Payments per Mile, 2010-2018
$0.300
$0.264 $0.265
$0.255
$0.250 $0.230
$0.215

$0.200 $0.184 $0.189


$0.174
$0.163

$0.150

$0.100

$0.050

$0.000
2010 2011 2012 2013 2014 2015 2016 2017 2018

The strong demand for trucking capacity in 2018, and requisite carrier confidence in higher
spot and contract pricing had a considerable impact on Class 8 truck purchases.
Manufacturers received a record number of orders in 2018, as fleets primarily sought to
replace current truck tractors, with only marginal increases in new capacity. Purchases were
stable for the first half of 2019 but dramatically declined, starting in the 3rd quarter, due to a
softening economy. 37

Specialized carriers reported the highest lease or purchase CPM in 2018 with costs over 30
cents per mile, surpassing truckload carriers, who reported 28.8 cents a mile. LTL carriers
reported the lowest CPM, at 20.4 cents per mile for 2018.

Repair and Maintenance

Repair and maintenance (R&M) costs are considered a bellwether of everything from aging
equipment to operating in regions with poor infrastructure. In addition, two major components
of rising R&M costs include:

• Higher expenses associated with diagnosing and repairing / maintaining highly


sophisticated components found in new trucks; and
• Labor costs buried in the R&M line item for the severe shortage of diesel technicians. 38
As equipment becomes more complex, the ability to train and recruit this labor force will
become extremely challenging.

37 “Most Recent Class 8 Orders.” FTR Transport Intelligence. Retrieved September 25, 2019. Available Online:
https://ftrintel.com/news/latest-orders/index.php
38 “Diesel technician shortage a perfect storm gathering for decades.” Equipment World. March 18, 2019. Available online:

https://www.equipmentworld.com/diesel-tech-shortage-part-1-call-it-the-perfect-storm-one-thats-been-gathering-for-decades/

An Analysis of the Operational Costs of Trucking:


2019 Update 29
Overall, the R&M CPM has increased by 66 percent from 2008 to 2018.

While long term R&M cost increases can be attributed to the more complex R&M and
technician shortages noted above, a likely explanation for the 2.4 percent growth from 2017 is
increased equipment usage. From 2017 to 2018, the average increase in miles driven per
truck was nearly two percent (Table 15). This increased mileage directly impacts preventative
maintenance and repairs on equipment

Table 15: Change in Annual VMT per Truck


Average Miles Driven Percentage Change in
Per Year Per Truck Miles Driven Per Year
Equipment Type 2017 2018 Per Truck
Truck Tractors 89,804 91,506 1.9%

The different industry sectors experience repair and maintenance costs differently. Specialized
carriers consistently pay more for R&M than both LTL and TL, paying 23 cents for R&M per
mile (Table 16).

Table 16: Repair and Maintenance Costs by Sector, 2010-2018

Sector 2010 2011 2012 2013 2014 2015 2016 2017 2018

LTL $0.15 $0.18 $0.18 $0.18 $0.19 $0.17 $0.23 $0.19 $0.18
Specialized
$0.14 $0.16 $0.14 $0.13 $0.18 $0.17 $0.18 $0.22 $0.23
/ Other
TL $0.11 $0.14 $0.11 $0.14 $0.13 $0.14 $0.13 $0.13 $0.15

Fleet size is another of the many factors that can contribute to R&M costs due to economies of
scale in purchasing, as well as differences in equipment and trade cycles. Smaller fleets, for
instance, are more likely to have older equipment that requires more frequent and intensive
repairs and maintenance. Smaller fleets also face higher costs to employ outside R&M
services. As a result, fleets with fewer than 100 power units paid the highest rates among fleet
size categories (Figure 7).

An Analysis of the Operational Costs of Trucking:


30 2019 Update
Figure 7: Respondent Repair and Maintenance Cost per Mile by Fleet Size

$0.300

$0.250 $0.239
$0.225

$0.200
$0.176 $0.176

$0.147 $0.142
$0.150

$0.100

$0.050

$0.000
Less than 5 5-25 Power Units 26-100 Power 101-250 Power 251-1,000 Power Greater than
Power Units Units Units Units 1,000 Power
Units

Looking Forward

R&M costs are expected to increase in 2019, despite the erroneous assumption that new truck
tractor acquisitions will lower maintenance costs. As integrated technology has become more
prominent in truck tractors, the cost of maintaining a new truck in 2018 was more expensive
than maintaining a new truck in 2008. Increasing diesel technician wages also contribute to
rising R&M costs, particularly with advanced technology requiring specialized technicians for
maintenance.

Truck Insurance Premiums

Commercial trucking insurance is a volatile cost center for motor carriers, independent of fleet
size. There are many external factors that affect carrier rates, and several are not related to a
fleet’s safety rating or crash history. Carriers are continuously evaluating their insurance costs
and risk liability, trying to effectively manage the balance of risk and cost.

Based on data provided by motor carrier respondents, insurance CPM increased by 12


percent, to 8.4 cents per mile in 2018. Specialized carriers paid the highest cost, reporting
10.4 cents per mile. These costs reflect the higher risk associated with specialized carriers,
such as tank trucks and oversized/overweight trucks that haul non-standard cargo.

The principle reasons for increased premiums include growing litigation, increased traffic
associated with the expanding economy, as well as increasing vehicle prices. With more
people on the road as a result of a growing economy, the likelihood of a crash increases.
Seemingly independent of increasing traffic-related crash risk, truck-involved crashes are
generating dramatic increases in both the number of civil litigation case filings as well as

An Analysis of the Operational Costs of Trucking:


2019 Update 31
increases in jury awards and out-of-court settlements. Figure 8 shows a trend line that has
now become commonplace: insurance costs increasing across the board; increasing fastest
among small to medium fleets that do not have the ability to increase financial risk; and larger
carriers maintaining insurance cost stability, through high deductibles and/or self-insurance. In
most cases, carriers have increased coverage beyond the FMCSA-required minimum
coverage of $750,000. In any case, these and many other factors force insurance companies
to dramatically increase premiums across the entire base of insured carriers, regardless of
sector or fleet size.

Figure 8: Respondent Truck Insurance Premium Costs per Mile by Fleet Size
$0.180
$0.165
$0.160 $0.152

$0.140

$0.120

$0.100 $0.092

$0.080 $0.069 $0.069

$0.060 $0.049

$0.040

$0.020

$0.000
Less than 5 5-25 Power Units 26-100 Power 101-250 Power 251-1,000 Power Greater than
Power Units Units Units Units 1,000 Power
Units

The growing cost and sophistication of repairing damaged truck tractors also requires the
insurance companies to distribute high repair costs across all carriers.

Ultimately, insurance costs become one of the most complex line items to assess since
carriers continuously modify deductible levels, coverage amounts, and self-insurance and re-
insurance coverage levels.

Tires

As both tires and fuel derive from petroleum, they typically share a strong cost correlation
(Figure 9). However, after the Great Recession, tire prices climbed to some of the highest
levels in ATRI’s tenure of collecting operational cost data – in spite of low petroleum prices.
The primary cause was high tire demand (needed for the record truck/trailer sales) outstripping
supply amid low tire inventories coming out of the recession. The slight decline in tire prices
over the last four years – and stable tire pricing across 2017 and 2018 – is likely due to the

An Analysis of the Operational Costs of Trucking:


32 2019 Update
large U.S. surplus of styrene butadiene rubber (SBR), a synthetic rubber used to replace
natural rubber (NR) in tires. 39,40

Not surprisingly, carriers in the specialized category continue to experience higher tire costs
than both TL and LTL carriers. In 2018, specialized carriers expended 0.046 cents per mile on
tires, while LTL TL carriers experienced similar per mile tire costs at $0.037 and $0.036 cents
per miles respectively.

Figure 9: ATRI Tires and Fuel Cost CPM Indices, 2008-2018


160

140

120

100

80

60

40

20

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ATRI Tires CPM Index ATRI Fuel CPM Index

Tolls

Toll costs have continued to rise since the first publication of this report in 2008. Among the
factors contributing to this increase is the pricing power that many U.S. toll authorities have,
allowing for inflation or above-inflation toll increases. 41 Additionally, in some U.S. markets
there are limited alternatives to tolled routes, especially in major urban areas with tolled bridge
systems. These factors likely contributed to the 11 percent increase in toll CPM in 2018.

Permits and Special Licenses

The average permit and licensing CPM for all carrier respondents was 2.4 cents per mile in
2018. While there was a small increase from 2017, 2018 permit costs remain low compared to
2010 and 2011. Permit and license fees can differ greatly by sector. As would be expected,

39 Raleigh, Patrick. “Tire Materials costs trending higher”. European Rubber Journal. October 1, 2018. Available Online:

https://www.european-rubber-journal.com/2018/10/01/tire-materials-costs-trending-higher/
40 “Four key factors shaping the tire materials market to 2021” Smithers. Retrieved September 23, 2019. Available online:

https://www.smithers.com/resources/2016/mar/four-key-factors-shaping-the-tire-materials-market
41 Global Infrastructure & Project Finance. Fitch Ratings. Spring 2019. Available online: https://tollroadsnews.com/wp-

content/uploads/2019/04/Fitch_US-Transportation-Trends_Spring-2019.pdf

An Analysis of the Operational Costs of Trucking:


2019 Update 33
specialized carriers experience fees greater than the average TL or LTL carrier for this line
item. In 2018, both TL and LTL carriers paid 2 cents per mile for permits and licenses, while
specialized carriers paid 4.8 cents per mile – more than double the permit costs of TL and LTL.

Other factors that affect permit and licensing fees are geography and state economic
conditions. While ATRI is presently researching the degree to which toll revenue is returned to
infrastructure maintenance and reconstruction, there is little understanding of the use or
designation of permit and licensing fees to infrastructure.

Costs by Region
Carriers operating predominantly in the Southwest and Southeast reported the lowest
operating costs in 2018, a recurrence of previous years. The highest Ops Costs were incurred
by carriers operating predominantly in the West and Northeast (Table 17). Operations in the
West are known for longer trip lengths and above-average traffic congestion on the coast. The
Northeast experiences heavy population concentrations and requisite traffic congestion and
truck bottlenecks; these traffic conditions often come with increases in truck-involved crashes –
which generate higher repair and maintenance and insurance costs. There is also a
preponderance of toll roads in the Northeast – which raises that particular line item cost.

Table 17: Average Marginal Cost per Mile by Region, 2018

Motor Carrier
Midwest Northeast Southeast Southwest West
Costs

Vehicle-based
Fuel Costs $0.404 $0.457 $0.390 $0.405 $0.466
Truck/Trailer
Lease or
$0.274 $0.288 $0.244 $0.260 $0.272
Purchase
Payments
Repair &
$0.148 $0.193 $0.155 $0.139 $0.199
Maintenance
Truck Insurance
$0.073 $0.080 $0.074 $0.077 $0.091
Premiums
Permits and
$0.028 $0.030 $0.022 $0.029 $0.033
Licenses
Tires $0.033 $0.040 $0.035 $0.040 $0.043
Tolls $0.033 $0.049 $0.029 $0.027 $0.025
Driver-based
Driver Wages $0.566 $0.598 $0.553 $0.467 $0.495
Driver Benefits $0.168 $0.229 $0.229 $0.132 $0.187
TOTAL $1.727 $1.962 $1.679 $1.577 $1.810

An Analysis of the Operational Costs of Trucking:


34 2019 Update
Industry Sector in Focus: Tank Trucks

ATRI continues to expand the annual Operational Cost of Trucking analysis with its “Industry
Sector in Focus” section. When ATRI determines that an industry sector submits sufficient
data to produce a targeted assessment of line item average marginal costs, it attempts to
isolate and emphasize unique industry sectors. In this report, Tank Truck fleets provided
sufficient data to analyze their operational costs.

Table 18: Tank Truck Average Marginal Costs per Mile, 2018
Average Share of Total
Motor Carrier Costs Marginal Cost Average Marginal
per Mile Costs per Mile
Vehicle-based
Fuel Costs $0.515 24%
Truck/Trailer Lease or Purchase
$0.310 14%
Payments
Repair & Maintenance $0.279 13%
Truck Insurance Premiums $0.105 5%
Permits and Licenses $0.035 2%
Tires $0.055 2%
Tolls $0.015 1%
Driver-based
Driver Wages $0.699 32%
Driver Benefits $0.142 7%
TOTAL $2.155 100%

ATRI’s tank truck dataset included 10,082 trucks and 17,652 trailers in 2018. Respondents
reported an average marginal cost of $2.16 in 2018 – 18.4 percent higher than the average
marginal cost of truck tractors overall (Table 18). This increase is likely due to higher costs in
key cost centers as noted below.

• R&M costs for tank trucks were significantly higher (63.2%) per mile than the average
for all truck tractors. This is attributable in part to the specialized equipment utilized in
hauling corrosive and hazardous materials, which yields increased maintenance and
repair costs. Secondly, tank trailers in the ATRI dataset were, on average, over 15
years old, which would result in higher costs across multiple line items.
• The truck insurance premium cost per mile for tank trucks was $0.105, 25 percent
higher than the average for all truck tractors, reflective of the higher cost to insure
hazardous cargo.
• At $0.699 per mile, the tank driver wage cost per mile was 17.3 percent higher than the
overall driver wage cost per mile. This was likely driven by the higher premium paid for
drivers with a hazmat endorsement on their CDL.

An Analysis of the Operational Costs of Trucking:


2019 Update 35
Electronic Logging Device Costs

As described in the Methodology, the 2019 Ops Costs data collection included questions on
technology deployment and associated costs from FMCSA’s ELD Mandate. Effective
December 2017, the mandate allowed fleets already utilizing Automatic On-Board Recording
Devices (AOBRDs) to wait until December 2019 to transition to Electronic Logging Devices
(ELDs). Therefore, motor carrier respondents were asked to submit fleet usage of both
equipment types as well as associated costs.

The vast majority of 2019 respondents used some type of electronic logging device, with 31
percent of respondents using ELDs and 67 percent using AOBRDs. 42 Based on several
different assessments of carrier transitions from AOBRDs to ELDs, most industry surveys and
anecdotal evidence indicate that the majority of fleets had converted to ELDs by the third
quarter of 2019. 43

On average, the ELDs were approximately $200 cheaper compared to AOBRDs, with only
marginal differences in subscription fees (Table 19). The lower price of ELDs is likely
associated with greater competition among ELD providers versus the much smaller number of
legacy AOBRD providers.

Table 19: ELD and AOBRD Costs

ELD AOBRD

Per Unit Fee $757.81 $960.97


Monthly Subscription Fee $37.32 $39.32

CONCLUSION

In this 2019 report, ATRI documented and updated the marginal operational costs that carriers
experienced in 2018 using financial data provided directly from motor carriers. This research
continues to provide important benchmarking inputs – allowing carriers to discern and compare
their performance against other peer fleets. Additionally, carriers can compare select line item
costs to fleets of similar sizes, operating regions and industry sectors. An additional objective
of this research is to ensure that accurate, real-world data inputs are available for public sector
transportation planning and investment models, in order to generate realistic costs and
benefits that accrue to commercial vehicle operators.

Based on the industry data, the average marginal cost per mile in 2018 was $1.821 for the for-
hire sector of the trucking industry. This was a 7.7 percent increase from 2017. The robust

42These numbers will not add to 100 percent as two percent of respondents reported being exempt from the federal mandate.
43Clevenger, Seth. “Training Key for Smooth Transition From AOBRDs to ELDs.” Transport Topics. October 6, 2019.
Available online: https://www.ttnews.com/articles/training-key-smooth-transition-aobrds-elds

An Analysis of the Operational Costs of Trucking:


36 2019 Update
economy, a longstanding labor shortage, increasing diesel fuel and insurance prices all
contributed to the increasing year-over-year cost per mile of trucking.

Driver compensation continued to be the single largest cost that carriers faced in 2018. If the
driver shortage continues, wages are expected to increase, exacerbating the already large
cost of employee compensation. In addition, if the geopolitical, trade and legislative
environments favorably resolve their issues, 2019 data will likely reflect a solid growth in both
trucking services and related costs.

While ATRI’s Ops Cost research focuses exclusively on the for-hire sector of trucking, the for-
hire data can be juxtaposed with private fleet data to identify interesting comparisons. The
National Private Truck Council (NPTC) produces an annual “Private Fleet Benchmarking
Report” which is based on private fleet operating statistics. In NPTC’s 2019 report, the overall
average operating cost for private fleet trucks ranged between $2.69 and $3.14 – depending
on mileage. This equates to a 48 percent to 72 percent premium over the for-hire average
costs published in this report. Much of the cost differential between for-hire and private fleets
derives from the higher administrative costs associated with managing trucks within a much
larger business enterprise.

Based on NPTC’s $3.14 CPM in the 2019, private fleet costs rose 7.9 percent over the
previous year; ATRI’s year-of-year increase of 7.7 percent indicates an extremely similar
landscape for line item cost pressures.

Starting wages for truck drivers were listed as an average 48.5 cents per mile, with an average
maximum per-mile wage of 51.7 cents. That said, only 34 percent of private fleet truck drivers
were paid on a per-mile basis.

For private fleet bonuses, more than 80 percent of fleets provide some type of safety bonus;
followed by 63 percent of fleets providing new-hire referral bonuses; rounding out the top three
with 52 percent of fleets providing compliance bonuses. Two more relatively common private
fleet bonuses were for fuel economy and reduced idling time.

As expected in a private fleet business model, empty or “dead-head” miles are more common
as only 6 in 10 private fleets have “for-hire operating authority” (to move others’ products).
Consequently, approximately 28 percent of private fleets operated dead-head miles vs.16.6
percent in ATRI’s for-hire sample.

Finally, in comparing for-hire and private fleet trade cycles, NPTC’s private fleet sample had a
trade cycle of 6.5 years as compared to ATRI’s for-hire average trade cycle of 6.96 years.

An Analysis of the Operational Costs of Trucking:


2019 Update 37
APPENDIX

OPERATIONAL COSTS OF TRUCKING DATA COLLECTION FORM


The American Transportation Research Institute (ATRI) is again conducting its annual data collection of
for-hire motor carriers to acquire information on trucking industry operational costs in order to update
ATRI’s ongoing Operational Costs of Trucking report. ATRI is seeking cost data from 2018 associated
with operating a truck. The final report will support studies related to industry productivity, driver issues,
and fuel efficiency. Please note that the questions below are focused on TRUCK TRACTORS. If your
fleet also operates STRAIGHT TRUCKS, you will have an opportunity at the end of the form to submit
separate cost information for the straight trucks in your fleet.

The data collected will be kept completely confidential. Personal, organizational, or financial information
will never be released for public use under any circumstance, and will only be used internally for research
analyses. The final report will only be presented in an aggregated, non-identifying format. As needed,
ATRI will sign a Confidentiality Agreement.

The data collection form can be completed online at: https://atri.checkboxonline.com/OpCosts2019.aspx


or by completing this form and returning it via email to dmurray@trucking.org, via fax to 770-432-0638, or
by mail to ATRI, 2060 Franklin Way SE Suite 201, Marietta, GA 30067.

All respondents submitting a completed, usable data collection form will receive an advance copy of the
2019 Operational Costs of Trucking report.

If you have any questions please contact Dan Murray at dmurray@trucking.org or 651-641-6162 ext. 2.

CONTACT INFORMATION

Please enter your contact information below. Occasionally ATRI will follow up with respondents to clarify answers.
Your information will be kept strictly confidential. All respondents will receive an advance copy of the report.

Company Contact Name

Street Address Position/Title

City, State Zip

Phone Email

ATRI’s Operational Costs of Trucking Data Collection Form Page 1 of 9


DEMOGRAPHIC DATA

1) What was your fleet’s IFTA mileage in 2018? (Include Owner-Operator miles reported for IFTA
purposes)
__________________

2) What was your company’s annual trucking-related revenue in 2018? (Exclude brokerage/logistics
revenue)
$_________________

3) What is your primary for-hire business operation type? (Select one)


Truckload 
Less-Than-Truckload 
Specialized – Oversize/Overweight 
Flatbed 
Tanker 
Express / Parcel Service 
Intermodal Drayage 
Automotive Transportation 
Household Goods Mover 
Other (please specify):

4) What are the three primary types of commodities that your company hauls? (While your company
may haul multiple commodities, select only the top 3 most frequently hauled commodities.)
 Agricultural Products  Livestock
 Automotive Parts  Manufactured Goods
 Construction/Building Materials  Mine Ores
 Finished Vehicles  Modular/Mobile Homes
 Forest Products  Paper Products
 Garbage or Sanitation  Petroleum Products
 General Freight  Refrigerated Food
 Hazardous Materials  Retail Store/General Merchandise
 Heavy Machinery/Equipment  U.S. Mail/Parcel Service
 Household Goods  Other (please specify):
 Industrial Gases ________________________
 Intermodal Containers  Don’t Know

ATRI’s Operational Costs of Trucking Data Collection Form Page 2 of 9


5) Are any of the trucks in your fleet speed limited or governed?
 Yes  No  Don’t Know

If yes, please provide the maximum speed setting and the percent of your fleet governed at that speed.
Maximum Speed (MPH) Percent of Trucks

6) Based on your fleet’s IFTA miles, what percentage of your drivers’ trips were in the following
categories in 2018? (Total must sum to 100%)
Local pickups and deliveries (less than 100 miles)
Regional pickups and deliveries (100 – 500 miles)
Inter-regional pickups and deliveries (500 – 1,000 miles)
National (greater than 1,000 miles)
Total 100%

7) Please estimate the percentage of miles traveled by your fleet (include Owner-Operator miles) in the
following regions during 2018. (Total must sum to 100%)

Region % of Total Miles


Midwest
Northeast
Southeast
Southwest
West
Canada
Total 100%

8) How many drivers did your company employ in 2018 for each type of equipment and employment
arrangement?

Company Driver / Leased Driver /


Owner-Operator
Company Truck Company Truck
Truck-Tractor – Single Driver
Truck-Tractor – Team Drivers
Straight Truck
Other (please specify):

ATRI’s Operational Costs of Trucking Data Collection Form Page 3 of 9


TRUCK-TRACTOR DATA

9) What was your company’s fleet size, average age and average number of miles traveled (including
Owner-Operators) in 2018?
Number of Average Age Average Miles per
Power Unit
Assets (in years) Year per Unit
Truck-Tractor

Number of Average Age


Trailer Type
Assets (in years)
28’ Trailer
33’ Trailer
45’ Trailer
48’ Trailer
53’ Trailer
Tank
Flatbed
Auto Transporter
Refrigerated Trailer
Other (please specify):

Other (please specify):

Other (please specify):

10) For your fleet of TRUCK TRACTORS, what is your typical operating weight in pounds?
____________ LBS

11) While your vehicles were in motion, what was your average TRUCK-TRACTOR travel speed in miles
per hour (MPH)?
______ MPH

12) How long do you typically keep your equipment? (Specify years or miles)
Equipment Type Avg. Trade Cycle Years Miles
Truck Tractors  
Trailers  
13) Are any of the TRUCK TRACTORS in your fleet powered by an alternative fuel (i.e. do not run
exclusively on diesel or gasoline)?
 Yes  No  Don’t Know

If yes, please indicate the number of TRUCK TRACTORS in your fleet that use each of the alternative fuels
listed below.
Alternative Fuel Type Number of Trucks
Compressed Natural Gas (CNG)
Liquefied Natural Gas (LNG)
Battery - Electric
Hybrid Engine
Other (please specify):

14) Based on your fleet’s IFTA data for TRUCK TRACTORS, what was your fuel economy in miles per
gallon (MPG) for 2018 (i.e. real miles driven divided by gallons of fuel purchased)?

ATRI’s Operational Costs of Trucking Data Collection Form Page 4 of 9


_______MPG

15) What percent of your total annual TRUCK TRACTORS miles were non-revenue/dead-head miles in
2018?
____ % of total 2018 miles

16) What was your average loading/dwell time per trip involving TRUCK TRACTORS at shipper / receiver
facilities in 2018? (Average time in hours)
____ hours per trip

17) Please list the pay per mile ($/mile)* or pay per hour ($/hour) for SINGLE TRUCK TRACTOR drivers in
2018. (If there are multiple pay rates for the same type of driver please use the average pay rate.)

Company Driver / Leased Driver /


Owner-Operator
Company Truck Company Truck
Pay per Mile1
Benefits per Mile2
Pay per Hour1
Benefits per Hour2

1 Pay – Include only base pay. Do not include benefits, incentives and bonuses.
2 Benefits – Include employer contributions to medical insurance, per diem and other financial benefits to the
driver that are a standard part of employment. Do not include incentives and bonuses.
* Note – If your drivers are paid by the load, please convert these costs into a per mile figure. To convert this
figure, calculate Total Driver Pay = (Total Loads Delivered in 2018) x (Pay Rate per Load). Then calculate Pay
per Mile = Total Driver Pay / IFTA Miles.

Please list the benefits you provide to drivers that were included in the calculation above:
____________________________________________________________________________

18) Do you provide any additional financial incentives and/or bonus pay for SINGLE TRUCK-TRACTOR
drivers that are not part of their regular wages?
 Yes  No  Don’t Know

If yes, what was the average incentive and/or bonus pay paid per driver in 2018? (Please report as an
annual average paid per driver.)

Company Driver / Leased Driver /


Type of Bonus Owner-Operator
Company Truck Company Truck
Safety Bonus
On-Time Delivery
Bonus
New / Starting Driver
Retention Bonus
Other (please specify):

Other (please specify):

19) Do you employ team drivers?


 Yes  No  Don’t Know

ATRI’s Operational Costs of Trucking Data Collection Form Page 5 of 9


IF YOU ANSWERED NO TO QUESTION 19, PLEASE SKIP TO QUESTION 22. THE REMAINING
QUESTIONS ON THIS PAGE RELATE TO TEAM DRIVERS ONLY.

20) Please list the pay per mile ($/mile)* or pay per hour ($/hour) rates for the following types of TRUCK-
TRACTOR drivers who drove as part of a TEAM in 2018. (Please use the pay rate for each individual
driver, not the team rate. If there are multiple pay rates for the same type of driver, please use the average
pay rate.)

Company Driver / Leased Driver /


Owner-Operator
Company Truck Company Truck
Pay per Mile1
Benefits per Mile2
Pay per Hour1
Benefits per Hour2

1 Pay – Include only base pay. Do not include benefits, incentives and bonuses.
2 Benefits – Include employer contributions to medical insurance, per diem and other financial benefits to the
driver that are a standard part of employment. Do not include incentives and bonuses.
* Note – If your drivers are paid by the load, please convert these costs into a per mile figure. To convert this
figure, calculate Total Driver Pay = (Total Loads Delivered in 2018) x (Pay Rate per Load per Driver). Then
calculate Pay per Mile = Total Driver Pay / IFTA Miles.

Please list the benefits you provide to drivers that were included in the calculation above:
____________________________________________________________________________

21) Do you provide any additional financial incentives and/or bonus pay for TEAM TRUCK-TRACTOR
drivers that are not part of their regular wages?
 Yes  No  Don’t Know

If yes, what was the average incentive and/or bonus pay paid per individual driver in 2018? (Please report
as an annual average paid per driver.)
Company Driver / Leased Driver /
Type of Bonus Owner-Operator
Company Truck Company Truck
Safety Bonus
On-Time Delivery
Bonus
New / Starting Driver
Retention Bonus
Other (please specify):

Other (please specify):

ATRI’s Operational Costs of Trucking Data Collection Form Page 6 of 9


22) Please list your 2018 average TRUCK-TRACTOR cost per mile for the following key cost centers,
calculated using IFTA miles: (If the amount equals zero, please enter 0. If the line item does not apply to
your operation, please enter N/A.)

2018 Cost
Expense Type
per Mile
Repair & Maintenance
• Include R&M costs for all trucks and trailer; do not include tire-related $
expenses.
Tires
$
• Include all purchase, maintenance, re-treading, and replacement costs.
Fuel Costs
$
• Include all transportation fuel. Do not include fuel surcharge revenue.
Truck Insurance Premiums
• Include all liability, cargo, and excess liability policy premiums related to
$
insuring the truck. Do not include workers compensation costs/insurance,
physical damage, jury awards, or out-of-court settlements.
Truck and Trailer Lease or Purchase Payments
• Include all payment costs, and interest and fees associated with the $
payments. Do not include depreciation tax benefits.
Tolls
$
Permits & Special Licenses
$
• Include permits for oversize/overweight, HazMat, etc.
Other
$
• Please specify: ________________

Total $

23) Please provide the following information regarding the electronic logging technologies utilized by
your fleet in 2018 to maintain compliance with FMCSA’s Electronic Logging Device (ELD) Mandate.
Average Hardware Average Monthly
Electronic Logging Share of Power
Purchase Cost per Subscription Fee per
Technology Units (%)
Unit ($)* Unit ($/month)**
Electronic Logging Device
(ELD)
Automatic On-Board
Recording Device (AOBRD)
Not Applicable (e.g. short
haul exemption)
Total 100%
*Do not include the cost of any add-on services or monthly subscription fees in this calculation.
**Include all add-on subscription services associated with your electronic logging technology.

STRAIGHT TRUCK DATA

24) Does your fleet operate STRAIGHT TRUCKS?


 Yes  No

IF YOU ANSWERED NO TO QUESTION 24, YOU HAVE COMPLETED THE SURVEY. THE REMAINING
QUESTIONS RELATE TO STRAIGHT TRUCK OPERATIONS ONLY. THANK YOU FOR YOUR
PARTICIPATION!

ATRI’s Operational Costs of Trucking Data Collection Form Page 7 of 9


25) What was the number, average age and average number of miles traveled in 2018 for STRAIGHT
TRUCKS in your fleet?
Number of
Power Unit Average Age (in years) Average Miles per Year per Unit
Assets
Straight Truck

26) How long do you typically keep STRAIGHT TRUCKS? (Specify years or miles)
Equipment Type Avg. Trade Cycle Years Miles
Straight Truck  
27) For your fleet of STRAIGHT TRUCKS, what is your typical operating weight in pounds?
____________ LBS

28) While your vehicles were in motion, what was your average STRAIGHT TRUCK travel speed in miles
per hour (MPH)?
______ MPH

29) Are any of the STRAIGHT TRUCKS in your fleet powered by an alternative fuel (i.e. do not run
exclusively on diesel or gasoline)?
 Yes  No  Don’t Know

If yes, please indicate the number of STRAIGHT TRUCKS in your fleet that use each of the alternative
fuels listed below.
Alternative Fuel Type Number of Trucks
Compressed Natural Gas (CNG)
Liquefied Natural Gas (LNG)
Battery - Electric
Hybrid Engine
Other (please specify):

30) Based on your fleet’s IFTA data for STRAIGHT TRUCKS, what was your fuel economy in miles per
gallon (MPG) for 2018 (i.e. real miles driven divided by gallons of fuel purchased)?
_______MPG

31) What percent of your total annual STRAIGHT TRUCK miles were non-revenue/dead-head miles in
2018?
____ % of total 2018 miles

32) What was your average loading/dwell time per trip involving STRAIGHT TRUCKS at shipper / receiver
facilities in 2018? (Average time in hours)
____ hours per trip
33) Please list the pay per mile ($/mile)* or pay per hour ($/hour) for STRAIGHT TRUCK drivers in 2018. (If
there are multiple pay rates for the same type of driver please use the average pay rate.)
Company Driver /
Leased Driver / Company Truck Owner-Operator
Company Truck
Pay per Mile1
Benefits per Mile2
Pay per Hour1
Benefits per Hour2
1 Pay – Include only base pay. Do not include benefits, incentives and bonuses.
2 Benefits – Include employer contributions to medical insurance, per diem and other financial benefits to the driver that are a
standard part of employment. Do not include incentives and bonuses.
* Note – If your drivers are paid by the load, please convert these costs into a per mile figure. To convert this figure, calculate
Total Driver Pay = (Total Loads Delivered in 2018) x (Pay Rate per Load). Then calculate Pay per Mile = Total Driver Pay /
IFTA Miles.

ATRI’s Operational Costs of Trucking Data Collection Form Page 8 of 9


Please list the benefits you provide to drivers that were included in the calculation above:
_______________________________________________________________________________________

34) Do you provide any additional financial incentives and/or bonus pay for STRAIGHT TRUCK drivers
that are not part of their regular wages?
 Yes  No  Don’t Know

If yes, what was the average incentive and/or bonus pay paid per driver in 2018? (Please report as an
annual average paid per driver.)

Company Driver / Leased Driver /


Type of Bonus Owner-Operator
Company Truck Company Truck
Safety Bonus
On-Time Delivery
Bonus
New / Starting Driver
Retention Bonus

35) Please list your 2018 average STRAIGHT TRUCK cost per mile for the following key cost centers,
calculated using IFTA miles: (If the amount equals zero, please enter 0. If the line item does not apply to
your operation, please enter N/A.)

2018 Cost
Expense Type
per Mile
Repair & Maintenance
$
• Include R&M costs for all trucks and trailer; do not include tire-related expenses.
Tires
$
• Include all purchase, maintenance, re-treading, and replacement costs.
Fuel Costs
$
• Include all transportation fuel. Do not include fuel surcharge revenue.
Truck Insurance Premiums
• Include all liability, cargo, and excess liability policy premiums related to insuring the
$
truck. Do not include workers compensation costs/insurance, physical damage, jury
awards, or out-of-court settlements.
Truck and Trailer Lease or Purchase Payments
• Include all payment costs, and interest and fees associated with the payments. Do not $
include depreciation tax benefits.
Tolls $
Permits & Special Licenses
$
• Include permits for oversize/overweight, HazMat, etc.
Other
$
• Please specify: ________________
Total $

Thank you! We greatly appreciate your participation.

Please return completed data collection forms to ATRI via (770-432-0638),


email (dmurray@trucking.org), or mail (ATRI, 2060 Franklin Way SE Suite
201, Marietta, GA 30067)

ATRI’s Operational Costs of Trucking Data Collection Form Page 9 of 9


An Analysis of the Operational
Costs of Trucking: 2019 Update
November 2019

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