Summer Freight Risks Deriving From Trucking Costs' Inflation

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.

Trucking Costs Related to Operational Shortfalls

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:

• No insight into freight risks – Knowing what risks are the most likely or most pressing risks helps truckers manage resources and keep up with transportation costs.
• Overspending left unchecked – Without regular audits and end-to-end checks, it is easy for little overspending to go unnoticed, which only builds up over time.

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.

Cost-to-Cost Trucking Factors Related to Market Trends

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:

• No insight into carrier performance – It is important for truckers to know the high versus low performing carriers and which loads are best for which available driver.
• Limited capacity access – Without easy and accessible capacity, truckers will be forced to deal with higher rates and expenses, even with the most basic shipments.

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.

Direct Trucking Business Decisions Affecting Costs

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 automation – Poor back-office management, lack of insights, and not automating mundane tasks can add to expenses at every step of the transportation process.
• Poor training and onboarding protocols – The industry is constantly changing, and failure to keep up increases the overall cost- to- cost trucking rates and expenses.

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.

Insights to Help Trucking Companies Lower Impact of Inflation

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:

• Leverage clear and direct actionable analytics and insights to give team members a clear picture of what steps and actions to take.
• Implement data-driven decision-making and real-time responses to trucking service disruptions, exceptions, and issues.
• Use advanced specialized shipping options such as hub injection, zone skipping, and last-mile delivery.
• Ensure standardized anomaly detection processes, cost-effective response protocols, and real-time correction during uncertainty.

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.

Overcome Major Freight Risks and Get a Hold on Inflation by Partnering With Intelligent Audit Today

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.