Rising Transportation Costs – Time to Try a New Approach?

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With the costs of running and maintaining a fleet consistently rising, when does it make sense to look at a new approach? The average cost per mile increased 7.7% in 2018 for motor carriers. The cost of equipment continues to rise. Trucks get more and more complex due to both regulation and safety each year. They become more difficult to diagnose and repair.

The industry also faces a shortage of qualified technicians and the cost of maintenance is rising. The average cost per mile has risen to 17.1 cents per mile in 2018. Not only are the trucks more complex but wages are rising as the industry tries to recruit and retain quality technicians.

Experts agree that costs will continue to rise in 2019 and beyond. Fleets should begin to ask themselves if it makes sense to leverage the buying power and expertise of a leasing and maintenance provider? Can the economies of scale help reduce transportation costs?

 

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