Rising costs squeeze trucking industry, leading to struggles with profitability

According to ATRI’s latest operational costs of trucking report, the industry’s average cost of operating a truck declined slightly to $2.260 per mile, but non-fuel operating costs increased to $1.779, the highest ever recorded by ATRI. Truckload carriers were hit hardest, with many struggling to maintain positive profitability.

Trucking companies faced rising costs, with truck and trailer payments hitting a record high of $0.390 per mile, driver benefits costs increasing to $0.197 per mile, and driver wages rising modestly at 2.4%. To manage costs, carriers made operational adjustments such as reducing truck capacity and non-driver staff.

Despite the challenges, the report showed improvements in average truck age, dwell time per stop, and mileage between breakdowns. However, the freight market continued to deteriorate, with ACT Research’s For-Hire Trucking Index showing decreasing freight volumes and capacity. The report also highlighted uncertainties around tariffs and trade decisions impacting economic activity.

Fleets continued to struggle with profitability, as driver availability remained steady but investments in driver training were under pressure. Fleet purchase intentions were below historical norms, with many carriers reducing fleet tractor counts. The Pricing Index showed some improvement attributed to the temporary tightening effect of the annual Roadcheck inspection event.

Private versus for-hire fleet dynamics and rising equipment costs due to tariffs were factors to watch. The supply-side was expected to contract as private fleets decelerated growth, prolonging the recovery in the for-hire sector. The industry faces ongoing challenges as rising costs squeeze profitability.

Read more at Yahoo Finance: Rising costs continue to squeeze trucking industry