An Analysis of the Operational Costs of Trucking: 2018 Update
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An Analysis of the Operational Costs of Trucking: 2018 Update October 2018 An Analysis of the Operational Costs of Trucking: 2018 Update October 2018 Alan Hooper Research Associate American Transportation Research Institute Atlanta, GA Dan Murray Vice President, Research American Transportation Research Institute Minneapolis, MN 950 N. Glebe Road, Suite 210 Arlington, Virginia 22203 TruckingResearch.org ATRI BOARD OF DIRECTORS Ms. Judy McReynolds Mr. Rich McArdle Chairman of the ATRI Board President Chairman, President and Chief UPS Freight Executive Officer Richmond, VA ArcBest Corporation Fort Smith, AR Mr. Benjamin J. McLean Chief Executive Officer Mr. Andrew Boyle Ruan Transportation Management Co-President Systems Boyle Transportation Des Moines, IA Billerica, MA Mr. Dennis Nash Mr. Mike Ducker Executive Chairman of the Board President and CEO Kenan Advantage Group FedEx Freight North Canton, OH Memphis, TN Mr. Gregory L. Owen Mr. Rich Freeland Head Coach and CEO President and COO Ability/Tri-Modal Transportation Cummins Inc. Services Columbus, IN Carson, CA Mr. Darren D. Hawkins Mr. James D. Reed Chief Executive Officer President and CEO YRC Worldwide USA Truck Overland Park, KS Van Buren, AR Mr. Dave Huneryager Ms. Annette Sandberg President and CEO President and CEO Tennessee Trucking Association Transsafe Consulting, LLC Nashville, TN Davenport, WA Mr. Derek Leathers Ms. Rebecca Brewster President and CEO President and COO Werner Enterprises ATRI Omaha, NE Atlanta, GA Mr. Robert E. Low Mr. Chris Spear President and CEO President and CEO Prime Inc. American Trucking Associations Springfield, MO Arlington, VA ATRI RESEARCH ADVISORY COMMITTEE Karen Rasmussen, RAC Mike Golias Brenda Neville Chairman Director for Research, President Chief Executive Officer Intermodal Freight Iowa Motor Truck Association HELP Inc. Transportation Institute University of Memphis Dean Newell Jon Blackham Vice President, Safety Policy and Government Affairs Victor Hart Maverick, Inc. Canadian Trucking Alliance Director of Safety DOT Transportation, Inc. Steve Raetz Amy Boerger Director of Research and Vice President, Sales Sanford Hodes Market Intelligence Cummins, Inc. Ryder System, Inc. C.H. Robinson Worldwide, Inc. Senior Vice President and Bill Brown Deputy General Counsel Wellington F. Roemer, III Manager of Fleet Telematics President and CEO Southeastern Freight Lines Ken Howden Wellington F. Roemer Director, 21st Century Truck Insurance, Inc. Bob Costello Partnership Senior Vice President and U.S. Department of Energy Lee Sarratt Chief Economist Director of Safety American Trucking Kelly Killingsworth J.B. Hunt Associations Vice President of Inbound Transportation Mark Savage Tom Cuthbertson Wal-mart Stores, Inc. Deputy Chief Vice President, Regulatory Colorado State Patrol Compliance Victoria King Omnitracs, LLC Vice President Public Affairs Andrea Sequin UPS Director, Regulatory Services Dennis Dellinger Schneider National, Inc. President Dustin Koehl Cargo Transporters Vice President, Sales and Carl Stebbins Marketing Corporate Director of Chip Duden Total Transportation of Admissions and Marketing Vice President, Strategic Mississippi New England Tractor Trailer Business Analytics Training School Werner Enterprises Caroline Mays Director, Freight and Harold Sumerford, Jr. Paul J. Enos International Trade Section Chief Executive Officer Chief Executive Officer Texas DOT J&M Tank Lines Nevada Trucking Association Lisa Mullings James E. Ward Thomas Fansler President and CEO President and CEO President National Association of Truck D.M. Bowman Trimble Transport Mobility Stop Operators Tom Weakley Scott George Tom Murtha Director of Operations Chief Executive Officer Senior Planner Owner-Operator Independent TCW, Inc. Chicago Metropolitan Agency Drivers Association for Planning Foundation TABLE OF CONTENTS FIGURES AND TABLES ........................................................................................................... 5 LIST OF ACRONYMS ............................................................................................................... 6 INTRODUCTION ....................................................................................................................... 7 RESEARCH OBJECTIVE .......................................................................................................... 8 METHODOLOGY ...................................................................................................................... 9 Representativeness .................................................................................................... 11 RESPONDENT DEMOGRAPHICS ......................................................................................... 12 Size of Operation ........................................................................................................ 12 Type of Operation ....................................................................................................... 13 Equipment................................................................................................................... 14 Alternative Fuels ......................................................................................................... 16 Fuel Efficiency ............................................................................................................ 17 MOTOR CARRIER COSTS ..................................................................................................... 18 FINDINGS ............................................................................................................................... 18 Average Marginal Costs ..................................................................................................... 18 Line Item Costs .................................................................................................................. 22 Driver Compensation .......................................................................................................... 22 Driver Wages and Benefits ......................................................................................... 22 Driver Bonuses ........................................................................................................... 23 Moving Forward .......................................................................................................... 24 FuelCosts ........................................................................................................................... 24 Moving Forward .......................................................................................................... 28 Equipment .......................................................................................................................... 28 Truck/Trailer Lease and Purchase Payments ............................................................. 29 Repair and Maintenance ............................................................................................. 30 Moving Forward .......................................................................................................... 31 Truck Insurance Premiums ................................................................................................ 32 Tires ................................................................................................................................... 33 Tolls .................................................................................................................................... 33 Permits and Special Licenses ............................................................................................ 34 Costs by Region ................................................................................................................. 34 Industry Sector in Focus: Tank Trucks ............................................................................... 36 CONCLUSION ......................................................................................................................... 37 APPENDIX A ........................................................................................................................... 38 An Analysis of the Operational Costs of Trucking: 4 2018 Update FIGURES AND TABLES Figure 1: New and Expanded Survey Questions ....................................................................... 9 Table 1: For-Hire Industry Sector Breakout ............................................................................. 11 Figure 2: Respondent Fleet Size ............................................................................................. 12 Table 2: Respondent Revenue Statistics ................................................................................. 13 Table 3: Respondent Trip Types, 2011 to 2017 Comparison .................................................. 13 Table 4: Respondent Truck VMT and National Truck Registrations by Region ....................... 14 Table 5: Respondent Equipment Characteristics ..................................................................... 15 Table 6: Respondent Equipment Trade Cycle ......................................................................... 15 Table 7: Respondent Reported Fuel Economy Compared to Typical Operating Weight ......... 17 Table 8: Average Marginal Costs per Mile, 2009-2017 ............................................................ 19 Table 9: Average Marginal Costs per Hour, 2009-2017 .......................................................... 19 Table 10: Annual Change