Skip to content
Search AI Powered

Latest Stories

ATRI: most trucking operating margins were 6% or lower in 2023

Soft freight market delivered slumping revenues and rising costs for all sectors except LTL.

ATRI Screenshot 2024-06-26 at 2.53.37 PM.png

The soft freight market of 2023 continued to pose many challenges for operational efficiency in the trucking business, as low freight rates strained profitability across the industry, according to a report from The American Transportation Research Institute (ATRI).

The annual report by ATRI—which is the nonprofit research arm of the American Trucking Associations (ATA)—found that average operating margins were 6% or lower in all fleet sizes and sectors other than less than truckload (LTL).


Those margins were squeezed for two reasons. First, income is down: the truckload and specialized sectors in particular experienced drops in per-mile or per-truck revenue.

And secondly, costs are up: 2023 expenses rose across most categories. Fortunately, the increase was moderate; average costs across line-items increased at less than half the rates experienced during 2021 and 2022. But still, truck and trailer payments grew by 8.8% to $0.360 per mile, driver wages grew by 7.6% to $0.779 per mile, and repair and maintenance costs grew by 3.1% to $0.202 per mile. And truck insurance premiums grew much faster, rising 12.5% to $0.099 per mile after two years of negligible change.

Other costs also piled on to compound those pains. Deadhead mileage, a critical financial drain, rose to an average of 16.3% for all non-tank operations, and driver turnover rose by five percentage points in the truckload sector, ATRI found.
 

 

 

 

Recent

More Stories

undersea fiberoptic cable

U.S., U.K., and Australia boost supply chain defenses

The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.

The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.

Keep ReadingShow less

Featured

port managers counting shipping containers

Oracle says AI drives “smart and responsive supply chains”

Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.

To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.

Keep ReadingShow less
e-commerce order fulfillment platform software

U.S. shoppers embrace second-hand shopping

Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.

The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.

Keep ReadingShow less
Earth globe with location pins

CMA CGM offers awards for top startups

Some of the the most promising startup firms in maritime transport, logistics, and media will soon be named in an international competition launched today by maritime freight carrier CMA CGM.

Entrepreneurs worldwide in those three sectors have until October 15 to apply via CMA CGM’s ZEBOX website. Winners will receive funding, media exposure through CMA Media, tailored support, and collaboration opportunities with the CMA CGM Group on strategic projects.

Keep ReadingShow less
Hurricane Francine threatens supply chains

Hurricane Francine threatens supply chains

Businesses were preparing to deal with the effects of the latest major storm of the 2024 hurricane season as Francine barreled toward the Gulf Coast Wednesday.

Louisiana was experiencing heavy rain and wind gusts at midday as the storm moved northeast through the Gulf and was expected to pick up speed. The state will bear the brunt of Francine’s wind, rain, and storm damage, according to forecasters at weather service provider AccuWeather.

Keep ReadingShow less