Of all the factors trucking companies have to juggle and contend with, cost control management and tracking rising trucking costs, primarily fueled by widespread inflation and price increases, remain the most pressing and concerning. According to trucking cost research highlighted by Heavy Duty Trucking, shipping expenses are likely to hit an estimated $8,000 to $9,000 increase on trailers and systems that were already costing trucking around $30,000. This projection feeds into the current rise in the average trucking cost per mile and other pressures the industry feels today. The worker shortage and increase in consumer demand will also impact the trucking company's costs, capital budget, and finances. Cost-to-cost trucking financial plans won't go as far and will require more frequent tweaking and adjusting to remain valid in volatile markets. This would be a great time to mention the importance of having quality tech for their business. It can remove the stress of having to rely on people, and help predicts costs that may occur ahead of time.Proper freight analytics and real-time response make all the difference.
When trucking companies try to determine the average cost to operate a semi-truck per mile and what pricing increases to try and manage costs and inflations rates, several operational factors come into play:
Trucking and transportation service expenses can significantly increase without proper auditing and checks because of these operational costs, especially when they go unchecked and unmonitored.
Planning for trucking costs and short or long term budgeting concerns, no matter how small they may seem, can hit roadblocks with poor monitoring of market trends and influences, including inflation rates and market-driven insights such as:
Customer demands and business logistics can significantly impact transportation rates, the final semi-truck cost per mile, and what rates truckers are forced to pass on to their customers.
The rise in average trucking cost per mile, unfortunately, is a complicated combination of multiple poor trucking business decisions that have a far-reaching impact on companies, drivers, supply chains, and customers due to the following:
Lack of industry collaboration and a trucking business's failure to adjust cost management protocols accordingly can lead to higher trucking costs and more disruptions across the entire network.
Management teams looking for practical ways to control rising trucking costs, particularly in the wake of increased inflation and expenses, the following options are worth considering:
With practical insights and real-world applications, the average cost to operate a semi-truck per mile, increasing shipping costs, and inflating interest rates can all be better managed and offset.
Before the COVID-19 pandemic and panic, inflation was rising, but the jump in trucking costs associated with many aspects of supply chain management and logistics are likely to continue growing. Truckers must keep current market and company trends in mind, from basic daily operations such as routine freight auditing to more complex processes like planning average trucking cost per mile. Contact Intelligent Audit today for expert insights into semi-truck cost per mile, driver and customer-related expenses, and other industry and company-driven factors impacting the trucking industry's response to increased inflation rates.
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Use this freight audit checklist to guide shipping audits. You'll learn the best ways to carry out an audit for companies of different sizes.