Okay, here's the deal: After several years of being an owner/operator, then a company owner, to one who has gone into Financial Analysis of the trucking industry as whole, I need some historical information. Specifically what I'm looking for is data from the year 1990 and the year 2000. Not the years in between, but those two years individually.
What I'm trying to find for those two years
- Cost per gallon of fuel
- Cost per tire for new rubber
- Average Monthly Insurance Cost
- Average cost for a new truck
- Average cost for a new trailer
- Average driver pay in CPM and average miles per week
- Average Revenue per Mile to the truck (this one may be the most important to the research)
Why I'm trying to find it
I've have most of that information for 1980 which was the middle of the deregulation process. I'm trying to assemble enough information to write a "White Paper" or study for publication to trucking journals that details the financial implications over time of the industry as a whole.
A primary reason for this research is due the CPI Index, or the value of a dollar over time in our economy. For example, $1.00 in 1990 is worth approximately $1.82. In other words, if you bought goods/services for $1 in 1990, the same goods/services today would cost you $1.82. There are many thousands of products and services included in the CPI market basket including transportation. What I expect to find is that all else equal, prices are fairly constant and verifiable to those increases over time except in the transport/hauling industry. Every single one of our cost inputs has gone up exponentially across the board, and I expect what I will find is that our transport revenues to the truck have not gone up with it.
DAT posts average transportation rates weekly across three segments: Van, Refrigerated, and Flatbed. Last week's averages per mile on traded loads are $1.53, $1.80, and $1.92 respectively. Some will argue that inflation has been fairly flat since 2008, but if you look at the rising input costs even since 2008, that argument isn't valid and won't hold water. In 2008, you could buy a pretty good steer tire, installed, for about $300. Try that today? Won't happen. And, I also know first hand, freight rates in 2008 were similar to last week's rates. What does it all mean? Well, in my opinion, it demonstrates that the transportation industry is an industry of declining revenues. Put another way, it means revenue growth is failing to keep up with the increasing input costs which causes declining revenues and ability to generate profits.
Does this mean trucking is a bad industry? No. But, it does make it increasingly more difficult for smaller companies or owner operators to effectively get in the game because only the big companies can place standing orders for 300 new trucks a month and get mega discounts on the purchase price and even strike bargains on fuel discounts.
What I Intend to do with the White Paper?
In a perfect world? Publish it, send it viral, gain some mainstream attention industry pricing, and hopefully it'll get used for some good to help us little guys across the board.
Why does it matter? Here are some easily verifiable statistics:
How many trucking companies are there in the U.S.?
Estimates of 1.2 million companies in the U.S. Of that figure 97% operate 20 or fewer while 90% operate 6 or fewer trucks.
What is the average operating ratio for trucking companies?
Estimates are the operating ratio is 95.2. This means for every dollar in revenue the trucking company has a cost of 95.2 cents. Leaving them with a profit of 4.8 cents of every dollar.
2008 Average operating costs According to (ATRI)American Transportation Research Institute:
The average cost per mile was $1.73 per mile and $83.68 per hour
Granted, the difference between fuel at $2.25 and fuel at $4.25 will account for a $0.34 per mile cost change at 6 mpg. That number alone is huge, but as soon as fuel prices drops, so does the haul rate. So, who's making the money in the industry? My bet is on the brokers, the companies who lease on owner operators, and certainly the companies who offer the so called Lease Purchase.
So, I know this was long, but I figure the best way to get help finding the info I need is to thoroughly explain why I want it. Help? Please and thank you in advance. Any verifiable info or source for info you can share, I'll be grateful. To be relevant, the information has to be credible and verifiable.
Seeking Historical Information
Discussion in 'Ask An Owner Operator' started by MilkMan, Apr 13, 2016.
-
tommymonza, sawmill, Little Eddy and 3 others Thank this.
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
I love where your going with this, but it doesn't sound like objective journalism... more subjective. Take this where ever the facts lead you, rather than prove a point.
Bean Jr. Thanks this. -
It's not subjective at all except that it's subject to the proof by data. As for journalism, eventually I may use it for my dissertation topic. The point will prove itself if I can find the data.TheDude1969 Thanks this.
-
Trucks are more expensive, but last longer and get better fuel milage. DEF was not available in 1990 the industry is more efficient today, An owner op can subscribe to a load board and can find his/her own freight, where in 1990 it was a telephone call to a broker you knew or looking at the load board at the Truckstop. Comparing to 1990, the wages and rates of today are far behind inflation.
MilkMan Thanks this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.