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An Analysis of the Operational Costs of Trucking: 2017 Update

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An Analysis of the Operational Costs of Trucking: 2017 Update An Analysis of the Operational Costs of Trucking: 2017 Update October 2017 An Analysis of the Operational Costs of Trucking: 2017 Update October 2017 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 www.atri-online.org ATRI BOARD OF DIRECTORS Judy McReynolds Robert E. Low Chairman of the President and CEO ATRI Board Prime Inc. Chairman, President and CEO Springfield, MO ArcBest Corporation Fort Smith, AR Rich McArdle President David S. Congdon UPS Freight Vice Chairman and CEO Richmond, VA Old Dominion Freight Line Thomasville, NC Gregory L. Owen Head Coach and CEO Michael L. Ducker Ability/ Tri-Modal President and CEO Transportation Services FedEx Freight Carson, CA Memphis, TN Annette Sandberg Rich Freeland President and CEO President and COO Transsafe Consulting, LLC Cummins Inc. Davenport, WA Columbus, IN Rebecca M. Brewster Hugh H. Fugleberg President and COO President and COO American Transportation Great West Casualty Company Research Institute South Sioux City, NE Atlanta, GA Dave Huneryager Chris Spear President and CEO President and CEO Tennessee Trucking American Trucking Association Associations Nashville, TN Arlington, VA Derek Leathers President and CEO Werner Enterprises Omaha, NE ATRI RESEARCH ADVISORY COMMITTEE Scott Mugno, RAC Chairman Sanford Hodes Karen Rasmussen Vice President, Safety, Ryder System, Inc. President and CEO Sustainability and Vehicle Senior Vice President and Deputy HELP Inc. Maintenance General Counsel FedEx Ground Wellington F. Roemer, III Ken Howden President and CEO Jon Blackham Director, 21st Century Truck Wellington F. Roemer Insurance, Policy and Government Affairs Partnership Inc. Canadian Trucking Alliance U.S. Department of Energy Lee Sarratt Amy Boerger Kelly Killingsworth Director of Safety Vice President, Sales VP of Inbound Transportation J.B. Hunt Cummins, Inc. Wal-mart Stores, Inc. Mark Savage Bill Brown Victoria King Deputy Chief Manager of Fleet Telematics VP Public Affairs Colorado State Patrol Southeastern Freight Lines UPS Andrea Sequin Michael Conyngham Dustin Koehl Director, Regulatory Services Director of Research Vice President, Sales and Schneider National, Inc. International Brotherhood of Marketing Teamsters Total Transportation of Mississippi Carl Stebbins Corporate Director of Bob Costello Caroline Mays Admissions and Marketing Senior Vice President and Chief Director, Freight and International New England Tractor Trailer Economist Trade Section Training School American Trucking Associations Texas DOT Harold Sumerford, Jr. Tom Cuthbertson Brian McLaughlin Chief Executive Officer Vice President, Regulatory President J&M Tank Lines Compliance Trimble Transportation Mobility Omnitracs, LLC Minnetonka, MN James E. Ward President and CEO Dennis Dellinger Lisa Mullings D.M. Bowman President President and CEO Cargo Transporters National Association of Truck Stop Tom Weakley Operators Director of Operations Chip Duden Owner-Operator Independent Vice President, Strategic Business Tom Murtha Drivers Association Foundation Analytics Senior Planner Werner Enterprises Chicago Metropolitan Agency for Planning Paul J. Enos Chief Executive Officer Brenda Neville Nevada Trucking Association President Iowa Motor Truck Association Scott George Chief Executive Officer Dean Newell TCW, Inc. Vice President, Safety Maverick, Inc. Mike Golias Director for Research, Steve Raetz Intermodal Freight Transportation Director of Research and Market Institute Intelligence University of Memphis C.H. Robinson Worldwide, Inc. Victor Hart Director of Safety DOT Transportation, Inc. TABLE OF CONTENTS FIGURES AND TABLES ................................................................................................. 2 LIST OF ACRONYMS ..................................................................................................... 3 INTRODUCTION ............................................................................................................. 4 RESEARCH OBJECTIVE ............................................................................................... 5 METHODOLOGY ............................................................................................................ 6 Representativeness ..................................................................................................... 9 RESPONDENT DEMOGRAPHICS ............................................................................... 10 Size of Operation ....................................................................................................... 10 Type of Operation ...................................................................................................... 11 Equipment .................................................................................................................. 12 MOTOR CARRIER COSTS .......................................................................................... 17 Fuel ............................................................................................................................ 17 Equipment .................................................................................................................. 20 Driver Pay .................................................................................................................. 20 FINDINGS ..................................................................................................................... 21 Average Marginal Costs ............................................................................................. 21 Line Item Costs .......................................................................................................... 26 Fuel Costs .............................................................................................................. 26 Equipment Lease or Purchase Payments ............................................................... 28 Repair and Maintenance ......................................................................................... 29 Truck Insurance Premiums ..................................................................................... 31 Permits and Special Licenses ................................................................................. 32 Tires ........................................................................................................................ 33 Tolls ........................................................................................................................ 33 Driver Wages and Benefits ..................................................................................... 33 Costs by Region ......................................................................................................... 35 Straight Trucks ........................................................................................................... 35 CONCLUSION .............................................................................................................. 37 APPENDIX A ................................................................................................................. 38 An Analysis of the Operational Costs of Trucking: 1 2017 Update FIGURES AND TABLES Figure 1: New and Expanded Survey Questions ............................................................. 7 Table 1: For-Hire Industry Sector Breakout ..................................................................... 9 Figure 2: Respondent Fleet Size ................................................................................... 10 Table 2: Respondent Revenue Statistics ...................................................................... 11 Table 3: Survey Respondent Trip Types ....................................................................... 11 Table 4: Survey Respondent Truck VMT and National Truck Registrations by Region 12 Table 5: Survey Respondent Truck/Trailer Type, Average Truck Age, and Average Miles Driven per Year per Truck .................................................................................... 13 Table 6: Survey Respondent Equipment Trade Cycle................................................... 13 Table 7: Survey Respondent Reported Fuel Economy Compared to Typical Operating Weight and Average Operating Speed .......................................................................... 15 Figure 3: Average U.S. On-Highway Diesel Prices, 2008 – 2015 ................................. 18 Figure 4: Average U.S. On-Highway Diesel Prices, 2016 ............................................. 19 Table 8: Average Marginal Costs per Mile, 2008-2016 ................................................. 23 Table 9: Average Marginal Costs per Hour, 2008-2016 ................................................ 23 Table 10: Annual Change of Average Marginal Costs .................................................. 24 Table 11: Share of Total Average Marginal Cost, 2008-2016 ....................................... 25 Table 12: Average Total Marginal Costs by Sector, 2008-2016 .................................... 26 Figure 5: Respondent Fuel Cost per Mile by Fleet Size ................................................ 28 Table 13: Change in Annual VMT per Truck ................................................................. 29 Table 14: Repair and Maintenance Costs by Sector ..................................................... 30 Figure 6:
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