There was some good news in the report; fuel prices declined by 8.8 cents per mile. However, ATRI reported that insurance premiums and truck and trailer payments increased at higher rates.
Margin insurance costs rose by 12.5% in 2023, which will come as no surprise to most fleets. Insurance premiums are based on a variety of factors, including loss history. Fleets can be proactive in reducing the number of accidents and their severity by spec’ing advanced driver assistance systems, such as collision mitigation systems, lane departure warning, blind spot indicators, and adaptive cruise control. In addition, drivers should be trained in safe driving practice, and fleets should have strict policies in place that govern seat belt and cell phone use.
Deadhead miles were also up from 15.4% in 2022 to 16.3% in 2023. Fleets should look for backhaul opportunities to reduce empty miles and optimize routes, which can help save fuel.
ATRI does not see any substantial improvement in the freight markets for the foreseeable future, so fleets need to take action to reduce costs where they can to improve their total cost of ownership.
ATRI’s Analysis of the Operational Costs of Trucking: 2024 Update provides fleets with a good starting point to see how they compare with industry averages and identify areas for improvement.
Gino Fontana, CTP, is COO and EVP at Transervice Logistics Inc. Prior to this, he was VP of operations at Berkeley Division and Puerto Rico. He has more than 35 years of experience in the transportation and logistics industry with both operational and sales experience.
