A new report from the American Transportation Research Institute (ATRI) reveals that while the average cost of operating a truck decreased slightly in 2023, the industry continues to be burdened by high expenses and low freight rates. In its “Analysis of the Operational Costs of Trucking” released on July 1, ATRI noted that the average cost to operate a truck dropped by 0.4% year-over-year to $2.260 per mile. However, when adjusting for lower fuel costs, marginal operating expenses actually rose by 3.6% to $1.779 per mile, marking the highest non-fuel costs ever recorded.
This reflects an industry still grappling with increased operational expenses, weak freight demand, and shrinking margins. “The trucking industry is facing the most challenging freight market in years, with loads down and costs increasing,” said Greg Hodgen, CEO of Groendyke Transport. He added that ATRI’s benchmarking tools have become more critical as companies face rising costs and shrinking profits.
Rising Expenses Despite Fuel Relief
Fuel and maintenance costs did drop in 2023, easing the burden slightly. However, other major expenses climbed. Driver wages increased by 2.4%, slightly below the rate of inflation, but continued to be a leading cost driver since the COVID-19 pandemic began. Additionally, truck and trailer payments surged by 8.3%, averaging 39 cents per mile — an all-time high. Driver benefit costs rose by 4.8%, nearing 20 cents per mile.
These escalating costs coincided with a 6.8% reduction in non-driver staff, signaling attempts by carriers to reduce overhead as margins tighten.
Low Freight Rates and Weak Margins
ATRI reported that carrier profitability has eroded across nearly all sectors, with average operating margins falling below 2% industrywide — with the exception of the less-than-truckload (LTL) sector. Truckload carriers fared the worst, posting an average operating margin of negative 2.3%. The ongoing freight recession, particularly in dry van, flatbed, and refrigerated markets, has suppressed both spot and contract rates throughout the year.
Compounding the challenge, truck capacity shrank by 2.2%, as companies sold or parked underutilized vehicles. The average number of drivers per truck dropped to 0.93, and empty miles climbed to 16.7%, reducing overall efficiency.
Signs of Resilience
Despite economic pressures, the report highlights some areas of operational improvement. Average truck age decreased, while dwell time per stop and mileage between breakdowns improved — signs that fleet operators are maintaining strong performance in the face of adversity.
Still, as ATRI notes, without significant improvements in freight demand, trucking companies are likely to remain under pressure from both high operational costs and declining revenue, making strategic planning and cost management more important than ever.
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