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 total marginal costs rose by 3.9% in the truckload sector and remained flat in the specialized