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Trucking Costs Surge: Insurance & Wages Squeeze Profits
6 Dec
Summary
- Insurance premiums have risen for five consecutive years, reaching $10.2 per mile.
- Driver compensation is increasing, with companies struggling to find and retain talent.
- Truck and trailer payment costs have seen a 52.3% jump since 2019.
Trucking companies are currently navigating a challenging economic landscape characterized by increased operating costs, stagnant freight rates, and declining freight volumes. Shippers are pressuring carriers to reduce rates, resulting in significant margin compression for fleets.
Insurance costs represent a major expense, with premiums rising for the fifth year in a row. From 2023 to 2024, these rates increased by 3% to a record $10.2 per mile. Driver wages are also on the rise as companies compete to attract and retain qualified personnel, often offering higher pay and incentives, though securing top talent remains difficult.
Further exacerbating these financial pressures, the cost of new trucks and trailers has seen a substantial increase. Payment costs for these assets rose 8.3% between 2023 and 2024 and have climbed an astonishing 52.3% since 2019, marking the most significant cost upheaval in any expense category for carriers.
