The cost of operating a truck

Based on the American Transportation Research Institutes report on cost of operating a truck(18 wheeler) in 2017, the cost was 6% higher than the previous year or $0.10 a mile more than in 2016.  That is a very sharp increase, since from 2009 to 2016 the cost only went up 10.6% over that span of 7 years.

Here are the numbers based on location in the United States.

Cost to Operate per Mile:

Northeast $1.735

West $1.616

Midwest $1.591

Southeast $1.553

Southwest $1.556

Due to the current landscape in the country, and the industries inability to attrack enough new drivers, wages have increased 33% over the last 5 years.

Salaries account for more than 40% of the cost of operating, while fuel is higher than 20%, payments for equipment is aproximately 22% of the cost, with about 10% going to vehicle maintence, with the balance going to other cost, such as insurance, tires, tolls, and unpaid freight bills.

So it is getting more difficult to be profitable, even as the carrier side of the industry is seeing increased rates.  The one thing you can control, is not getting burned with an unpaid freight bill.  If you do get in a situation where a broker isn’t paying, or not even responding, make sure you reach out to me to get that freight bill paid.  Thanks

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