New ATRI Report: High Costs and Weak Demand Squeeze Trucking Profitability

0
1K


A new report from the American Transportation Research Institute (ATRI) highlights the tough financial reality facing the U.S. trucking industry as it continues to grapple with a freight recession and rising non-fuel costs.

Released July 1, ATRI’s “An Analysis of the Operational Costs of Trucking” found that average per-mile operating costs fell slightly — by 0.4% to $2.260 per mile in 2024 — driven mainly by a seven-cent drop in fuel costs. But when fuel is removed from the equation, the real story emerges: non-fuel costs rose 3.6% to $1.779 per mile, the highest ever recorded by ATRI.

Key cost categories hit record levels last year. Truck and trailer payments jumped 8.3%, reaching $0.390 per mile, while driver wages and benefits also increased, up 2.4% and 4.8% respectively. Insurance, tires, tolls, and other overhead costs similarly saw historic highs.

According to ATRI, despite lower fuel expenses, carrier profitability fell sharply in 2024. Average operating margins dipped below 2% in all sectors except less-than-truckload (LTL), while the truckload sector recorded an average operating margin of -2.3%.

The report points to several clear signs of market stress: truck capacity fell 2.2% as fleets sold off equipment, empty miles climbed to an average 16.7%, and drivers per truck dropped to 0.93 as companies sidelined rigs. Many fleets also cut non-driver staff by 6.8% to contain costs.

Despite the pressures, the report notes that fleets are keeping older trucks running longer and seeing improvements in average dwell time per stop and mileage between breakdowns — a sign of tighter cost control and operational discipline.

“The trucking industry is facing the most challenging freight market in years, with loads down and costs increasing,” said Greg Hodgen, President and CEO of Groendyke Transport, Inc. “ATRI’s data and customized benchmarking are more critical than ever as we navigate rising costs and shrinking margins.”

You can follow this link to access the full ATRI report.


Search
Sponsored
Categories
Read More
Trucking News
Empowering Truckers with Knowledge: American Truck Drivers Inc. Taking Important Steps to Promote Safe Driving
Washington, District of Columbia, United States , Jan. 10, 2023 (GLOBE NEWSWIRE) -- American...
By Truck Drivers Life 2023-01-25 14:01:04 1 13K
Trucking News
A stretch of I-40 in Arkansas to close for the weekend
The Arkansas Department of Transportation (ARDOT) will close eastbound I-40 in north Little Rock...
By MEGA MISTAKES 2022-08-21 22:50:07 0 13K
Trucking News
Truckload of bees receives emergency dousing during breakdown
A team of firefighters came to the rescue of some overheated bees when the truck hauling the...
By MEGA MISTAKES 2022-05-13 11:11:20 0 11K
Trucking News
Driver Charged With DWI After Tractor Trailer Carrying Blackberries Overturns on I-95
A tractor trailer hauling blackberries overturned early Wednesday morning on northbound I-95...
By American Truck Drivers 2025-06-19 15:30:55 0 2K
Trucking News
$12k in stolen pork marks 37th Philly cargo theft this year
Twelve thousand dollars worth of pork was stolen from the back of a semi truck on Wednesday in...
By MEGA MISTAKES 2024-04-15 16:23:30 0 14K
Truck Drivers Life | Social Network for Truck Drivers https://www.truckdrivers.life