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Reports Show Things Looking Up For Trucking As Costs Go Down
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Fuel and transportation costs and fuel costs rose for the trucking industry during the 2008-2011 recession, which lead to a gradual increase in the costs of operating an intermodal trucking company like Calhoun Truck Lines.
Fortunately, a new report shows that costs eased somewhat in 2012. Overall average costs to operate a truck fell 4 percent in 2012, down from a 10 percent increase from 2010 to 2011. The report, titled “An Analysis of the Operation Costs of Trucking 2013 Update” showed that while the average costs of operation for a truck fell slightly, increasing fuel prices and more pressure to raise truckers’ pay is contributing to a higher level of costs for the trucking industry.
Costs per mile fell to $1.62/mile from 2011’s $1.71/mile. Additionally, the study also showed that costs for those LTL (less than truckload) carriers dropped to nearly $180/mile, from 2011’s $1.93/mile.
While the lower average costs would initially indicate a forward progress for trucking, these are being offset with high costs of operation for other areas. Increased tire costs, higher fuel costs, and costs of traveling through tolls are still higher.
For most carriers, the majority of costs still come from fuel costs and driver wages. All of this comes at a time when many trucking companies are looking at the cost-savings benefits to switch to natural gas, writes the Dallas Business News. The industry is always seeking qualified drivers, and Calhoun Truck Lines is no exception. High fuel prices, more freight needs, tighter regulations on the trucking industry, and an older workforce adds up to higher costs across the board for truckers.
The American Transportation Research Institute manages this study on an annual basis, contributing essential economic research to encourage trucking firms to manage their trucking fleets and fuel costs accordingly.
On the heels of the ATRI report, the American Trucking Associations (ATA) recently released its U.S. Freight Transportation to 2024 Report that focuses on growth aspects of trucking for the next decade.
The report highlights the continuing importance of trucking and intermodal transportation in the United States. Among the highlights from the report include:
- Larger share of tonnage – Trucking’s share of tonnage will continue to rise over the next decade, moving to an expected 70.8% by 2024 from 68.5% in 2012.
- Higher Year-on-Year freight revenues – By 2024, overall freight revenue will grow nearly 64% to $1.3 trillion each year for the next 10 years.
- More growth for truckloads – Volumes will grow 3.2% through 2018, and in smaller percentages for the following years.
- Rail freight to Grow – The fastest growing freight mode will be intermodal rail. It’s expected to grow about 5% a year to 2018, then a bit less through to 2024.
At Calhoun Truck Lines, we are excited to hear more about growth issues in our industry. We consider it an important area of our nation’s economy. Calhoun Truck Lines’ operational facilities at our five Midwest trucking facilities are fully equipped to handle intermodal trucking needs. Contact us for more info on our business at http://calhountrucklines.com.
Article Source: Calhoun Truck Lines
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