"Maximizing Profitability: Why Calculating Your Cost Per Hour is Key for Trucking Success"

Trucking profitability is more than just cost per mile. Cost per hour is crucial, measuring delays, traffic, and inefficiencies. Understanding this metric separates operators from true business owners. Calculating your cost per hour accurately guides dispatch decisions and pricing, making you a more efficient and profitable business.

Comparing two carriers, it’s clear that time efficiency matters. Carrier B, with fewer miles but less time spent on the road, made more money per hour and operated more efficiently. Understanding your cost per hour allows for better decision-making and smarter business practices.

Calculating cost per hour involves fixed and variable costs divided by engine hours. This metric gives you a clear picture of your operational expenses regardless of whether the truck is moving or not. Knowing your cost per hour allows you to negotiate rates with brokers and shippers more effectively, positioning yourself as a professional business owner.

Tracking your cost per hour is essential for making informed pricing and dispatch decisions. Utilize tools like TMS or ELD time tracking to monitor your costs consistently. By understanding your business’s cost per hour, you can avoid taking on loads that may seem profitable but ultimately eat into your bottom line.

Read more at Yahoo Finance: How to Calculate Your Cost Per Hour Not Just Per Mile