An Analysis of the Operational Costs of Trucking: 2021 Update

1 An Analysis of the Operational Costs of Trucking: 2021 Update November 2021. An Analysis of the Operational Costs of Trucking: 2021 Update November 2021. Alex Leslie, Research Analyst American Transportation Research Institute Minneapolis, MN. Dan Murray Senior vice president American Transportation Research Institute Minneapolis, MN. 950 N. Glebe Road, Suite 210. Arlington, Virginia 22203. ATRI BOARD OF DIRECTORS. Judy McReynolds Dennis Nash Chairman of the ATRI Board Executive Chairman of the Board Chairman, president and Chief Kenan Advantage Group Executive Officer North Canton, OH. ArcBest Corporation Fort Smith, AR Brenda Neville president and CEO. Andrew Boyle Iowa Motor Truck Association Co- president Des Moines, IA. Boyle Transportation Billerica, MA Srikanth Padmanabhan president , Engine Business Hugh Ekberg Cummins Inc.

2 president and CEO Columbus, IN. CRST International, Inc. Cedar Rapids, IA James D. Reed president and CEO. Darren D. Hawkins USA Truck Chief Executive Officer Van Buren, AR. Yellow Overland Park, KS Lou Rivieccio president , Corporate Transportation Derek Leathers UPS. president and CEO Atlanta, GA. Werner Enterprises Omaha, NE John A. Smith president and CEO. Robert E. Low FedEx Ground president and Founder Moon Township, PA. Prime Inc. Springfield, MO Rebecca Brewster president and COO. Benjamin J. McLean ATRI. Chief Executive Officer Atlanta, GA. Ruan Transportation Management Systems Chris Spear Des Moines, IA president and CEO. American Trucking Associations Arlington, VA. ATRI RESEARCH ADVISORY COMMITTEE. Shawn R. Brown, RAC Steven Garrish Shelly Seaton Chairman vice president of Safety and vice president of Loss vice president of Safety Compliance Prevention Cargo Transporters Old Dominion Freight Line Landstar Michael Ahart Rob Haddock Charles Simpson VP, Regulatory Affairs Group Director, Planning and vice president , Strategic Omnitracs LLC logistics Intelligence Coca-Cola North America Xpress Ben Banks vice president , operations Glen Kedzie Russ Simpson TCW, Inc.

3 vice president , Energy & America's Road Team Captain Environmental Affairs Counsel Yellow Hayden Cardiff American Trucking Associations CEO and Founder Monique Stinson Idelic Kevin Lhotak Computational Scientist Argonne president National Laboratory Joe Darby Reliable Transportation Director, Safety & Risk Control, Specialists Daniel Studdard Transportation & logistics Principal Planner, Transportation Practice Mike Ludwick Access and Mobility Division Aon Chief Administrative Officer Atlanta Regional Commission Bison Transport Bob Elkins Randy Vernon Senior vice president , Industry Steve Olson Chief Executive Officer Vertical operations president and Chief Underwriting Big G Express Ruan Transportation Officer Management Great West Casualty Company Doug Voss Arkansas Highway Commission Brett Fabbri Clay Porter Endowed Chair Assistant Chief Attorney University of Central Arkansas California Highway Patrol Porter, Rennie, Woodard, Kendall, LLP Tom Weakley Gary Falldin Director of operations Sr.

4 Director of Industry Solutions Jeremy Reymer Owner-Operator Independent Trimble Founder and CEO Drivers Association Foundation DriverReach Melanie Feeley John Whittington vice president , General Rob Rhea vice president , Legislative Affairs Business manager Senior vice president and Grammer logistics K-Limited Carrier, Ltd General Counsel FedEx Freight Shawn Yadon James P. Fields Chief Executive Officer Chief Operating Officer Amanda Schuier California Trucking Association Pitt-Ohio, LLC Chief Operating Officer Quality Transport Rickey Fitzgerald manager , Freight and Multimodal Joe Sculley operations president Florida Department of Motor Transport Association of Transportation Connecticut TABLE OF CONTENTS. ACRONYMS .. 6. INTRODUCTION .. 7. RESEARCH OBJECTIVE.

5 7. METHODOLOGY .. 7. RESPONDENT DEMOGRAPHICS .. 10. Size of Operation .. 10. Type of Operation .. 12. Equipment .. 13. Alternative Fuels .. 15. Fuel Efficiency .. 16. MOTOR CARRIER Costs .. 18. FINDINGS .. 19. Regional Costs .. 25. Fleet Size .. 26. Driver Compensation .. 28. Fuel Costs .. 36. Equipment Costs .. 38. Truck Insurance Premiums .. 44. Other Marginal 47. CONCLUSION .. 47. APPENDIX Operational Costs OF DATA COLLECTION FORM .. 50. 4 An Analysis of the Operational Costs of Trucking: 2021 Update FIGURES AND TABLES. Table 1: For-Hire Industry Sector Breakout .. 9. Figure 1: Respondent Fleet Size .. 10. Figure 2: Respondent Revenue .. 11. Table 2: Respondent Trip Types, 2016 to 2020 .. 12. Table 3: Respondent Truck VMT and National Truck Registrations by Region.

6 13. Table 4: Respondent Equipment Characteristics .. 14. Table 5: Respondent Equipment Trade Cycle .. 14. Table 6: Trailer-to-Truck Ratio .. 15. Table 7: Use of Alternative Fuel Vehicles .. 16. Figure 3: Average MPG by Year .. 17. Figure 4: Annual Speed Governor Usage by Diesel Price .. 18. Table 8: Average Marginal Costs per Mile, 2011-2020 .. 21. Table 9: Average Marginal Costs per Hour, 2011-2020 .. 22. Table 10: 2019-2020 Annual Change of Average Marginal Costs per Mile Among For-Hire and Private 24. Table 11: Share of Total Average Marginal Cost, 2012-2020 .. 24. Table 12: Average Total Marginal Costs by Sector, 2011-2020 .. 25. Table 13: Average Marginal Cost per Mile by Region, 2020 .. 26. Table 14: Average Marginal Cost per Mile by Fleet Size.

7 27. Table 15: Company Driver Wages per Mile by Fleet Size .. 28. Figure 5: Driver Wages per Mile by Fleet Sector and 29. Figure 6: Driver Benefits per Mile by Fleet Sector and Size .. 30. Figure 7: Truckload Driver Wages and Benefits per Mile by Fleet 32. Table 16: ATRI Ops Costs Respondent Driver Benefits Offered .. 33. Table 17: Contracted Owner-Operator Pay per 34. Table 18: Single Driver Bonus Pay by Type .. 34. Figure 8: Diesel Prices and ATRI Fuel Cost per Mile Index, 2008-2020 .. 36. Figure 9: Monthly On-Highway Diesel Prices, 2016-2021 .. 37. Figure 10: Respondent Fuel Costs per Mile by Fleet Sector and 38. Figure 11: Lease and Purchase Payment Costs per Mile by Fleet Sector and Size .. 39. Figure 12: Repair and Maintenance Cost per Mile by Fleet Sector and Size.

8 41. Figure 13: ATRI Tire and Fuel Cost per Mile Indices, 2008-2020 .. 42. Figure 14: Insurance Premium and Out-of-Pocket Costs per Mile by Fleet Size .. 45. An Analysis of the Operational Costs of Trucking: 2021 Update 5. ACRONYMS. ATRI American Transportation Research Institute ATA American Trucking Associations CNG Compressed Natural Gas CPM Cost per Mile CPH Cost per Hour EIA Energy Information Administration ELD Electronic Logging Device FMI Freight Mobility Initiative IFTA International Fuel Tax Association LNG Liquefied Natural Gas LPG Liquefied Propane Gas LTL Less-than-Truckload MPG Miles per Gallon MPH Miles per Hour NPTC National Private Truck Council OEM Original Equipment Manufacturers Ops Costs Operational Costs of Trucking QCEW Quarterly Census of Employment and Wages RAC Research Advisory Committee SIRs Self-Insurance Retentions STA State Trucking Associations TL Truckload VMT Vehicle Miles Traveled 6 An Analysis of the Operational Costs of Trucking.

9 2021 Update INTRODUCTION. The American Transportation Research Institute (ATRI) published the first iteration of An Analysis of the Operational Costs of Trucking in 2008 with the goal of providing accurate marginal cost data for the trucking industry. The need for this data in the trucking industry was originally identified by ATRI's Research Advisory Committee (RAC) 1 as a top priority in 2008. In conjunction with industry experts, ATRI developed a comprehensive methodology to calculate key cost centers in the trucking industry. ATRI has continued to publish an annual Update , streamlining methodologies and promulgating the marginal Costs of trucking on a yearly basis. This year's report, based on marginal cost data from 2020, analyzes cost metrics by fleet size, sector, and region of operation to a greater degree than ever before.

10 Though the COVID-19 pandemic made 2020 a historically unprecedented year in economic terms, ATRI's Operational Costs report (Ops Costs ) documents consistent trends in many cost centers and provides interpretations for volatility in others. As such, this research continues to serve as a high-level benchmarking tool for motor carriers, and data-driven resource for freight planning. RESEARCH OBJECTIVE. ATRI's Operational Costs of Trucking research addresses the ongoing need for accurate trucking industry Operational cost data among motor carriers and government transportation agencies. The primary metrics focus on marginal line-item Costs associated with per-mile or per-hour Operational Costs . While previous outside studies have provided Operational cost measurements, many relied on modeled data and subjective value-of-time metrics that were considered by industry experts to be inaccurate or subjective.