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Showing posts from July 19, 2024

Navigating Rising Trucking Costs: Insights and 2024 Outlook

  In 2023, the trucking industry saw the average marginal cost per mile climb to a record $2.27, according to the American Transportation Research Institute (ATRI).   This increase, though less than 1%, marks the continued financial pressure on the industry. Key Factors Behind Rising Costs 1.      Driver Wages : Driver wages rose by 7.6%, a moderation compared to the previous year's 15.5% surge.   Safety bonuses averaged $1,831, surpassing starting bonuses for the first time. 2.      Insurance Premiums : Premium expenses increased by 12.5%, driven by higher equipment costs, litigation risks, and inflation. 3.      Equipment Payments : Payments for trucks and trailers rose by 8.8%, reflecting the higher costs of acquiring and maintaining equipment. 4.      Fuel Costs : Fuel costs decreased from 64 cents per mile to 55 cents, offering some relief.   However, excluding fuel, the ...