How to Minimize the Impact of Rising Trucking Costs
How do you lower the costs of freight transportation when trucking industry prices are rising dramatically? Trucking companies are facing skyrocketing prices and cost volatility in the current economy. A recent 2019 update to the “Analysis of the Operational Costs of Trucking” study released by the American Transportation Research Institute (ATRI) shows that almost every carrier cost has risen since 2018.
The average marginal cost per mile for carriers rose to $1.82, a 7.7 percent increase from 2018 to 2019. Fuel costs rose nearly 17.7 percent, marking the highest year-over-year-growth of all trucking costs. The second highest cost growth was the price of insurance, which increased 12 percent. Due to the driver shortage, which is expected to more than double over the next 10 years, wages increased approximately 7 percent while benefits increased around 5 percent. The costs of repair and maintenance also rose to 17.1 cents per mile. While the technology associated with diagnostics and repairs has advanced, there are less technicians versed in the newer equipment. The severe shortage of these technicians has resulted in higher labor costs in this field.
The best way to ensure you’re not overspending is to work with a service provider you can trust. Weigh all the options your provider offers and check to make sure that you’re only paying for what you need. For example, if your cargo doesn’t warrant a full truckload, you can opt for Less Than Truckload (LTL) freight shipping. In this scenario, you only pay for the portion of the trailer that your cargo uses. This option is commonly used by shippers with freight between 150 and 12,000 pounds.
Cross-docking is another strategy for reducing costs while expediting delivery. Cross-docking services involve unloading freight from an incoming truck and loading it onto another vehicle with little to no storage time. This eliminates the need for products to be put away and warehoused, which saves time and money.
Most importantly, be sure to choose a freight company that keeps their fleet up-to-date and focuses on preventive maintenance to reduce the chance of breakdowns during cargo delivery. This minimizes impact on your bottom line and keeps your customers happy.
Visit this link to learn about how Best Yet Express sets itself apart from other California trucking companies.
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