Issue link: https://read.dmtmag.com/i/591411
C arrier spending on fleet equip- ment upgrades and increases in driver pay more than offset lower fuel prices in 2014, according to the annual Operational Costs of Trucking report issued Sept. 28 by the American Transportation Research Institute. The average marginal cost-per-mile for carrier operations rose in 2014 more than three cents to $1.703, according to ATRI's study, up from 2013's $1.676. ATRI surveyed carriers that in total account for 54,833 tractors and/or trucks. See the per- centage breakdown above for respondent fleets' size. Here's where carrier costs shrunk: Fuel still remained carriers' largest per- mile cost, 58.3 cents a mile in 2014, but its share of per-mile spending fell from 38 percent to 34 percent. The per-mile aver- age cost of fuel in 2014 fell 6.2 cents from 2013's 64.5 cents per mile. The only other line item to drop in 2014 was spending on permitting and licensing, which fell half a penny to 2.3 cents a mile, according to the report. Here's where they rose: Driver wages and equipment and main- tenance costs saw significant jumps, with driver pay rising 5 percent from 2013 and a equipment and maintenance costs climbing 41 percent. Driver wages, the second most costly item behind fuel, rose 2.2 cents to 46.2 cents a mile. ATRI attributes the increase to carriers' efforts to mitigate the current and projected driver shortage. Truck and trailer costs, in the form of either lease or purchase payments, jumped more than 5 cents a mile to 21.5, according to the report, up from 2013's 16.3 cents a mile and the highest since 2009's 25.7 cents a mile. Repair and main- tenance costs rose a penny to 15.8 cents a mile, the report says. 2014 was a banner year for Class 8 truck orders, which obvi- ously accounted for the increase in new equipment costs, ATRI says. Combined, fuel costs and driver wages alone made up more than 60 percent of carrier costs. Driver wages and benefits, by James Jaillet Team Feature www.jobsfor teams.com JOBS for TEAMS | 16 Here's where carrier costs rose and shrunk in 2014 (Hint: driver pay up, fuel down) Breakdown of respondent carriers' fleet size