The per-mile price of Cleveland trucking reached a record high last year, according to the American Transportation Research Institute.

Given that fuel costs actually went down, the trucking rate increases were mainly thanks to rises in insurance premiums (up about 12.5%) and driver compensation.

Big trucks are also more expensive than ever, and this industry isn’t any more immune to inflation than others. Equipment costs for trucks and trailers is up about 9%.

One silver lining: For the first time ever, driver safety bonuses (part of the driver pay calculation) eclipsed starting bonuses. Translation: We’ve got more experienced, safer drivers on the road as a whole, meaning fewer accidents, safer roads, and fewer supply chain disruptions.

Its also worth noting that the reported increases weren’t actually as hefty as the hikes we saw in previous years.

For example, although truck driver pay climbed by 7.6% last year, that was actually about half the increase as the year before, when it rose 15.5%. Driver compensation has seen double-digit upticks annually over the past few years – particularly truckers operating in the less-than-truckload / LTL sector (which rose 12% this past year). But the ATRI opines such increases are likely to level off within the next year or so.

Minimizing Your Cleveland Trucking Bill

There are more than 1.86 million companies in the U.S. with a tractor-trailer, straight truck, or hazmat truck. Of those, about 1.1 million are for hire, or what we call “motor carriers.”

Although $2.27 per mile is the highest trucking costs have ever been, that’s still a less than 1% increase. Not all trucking companies are equally impacted; it depends on their location, industry, fleet type, and services. But most have experienced it to an extent, and some of that inevitably get passed on.

Customers who need Cleveland trucking services to keep their supply chains moving may be wondering where they might find an offset.

First keep in mind that a good trucking carrier delivers cost savings on its own. A company with streamlined operations, skilled drivers, high-tech tracking, and a well-maintained fleet will minimize delivery times, reduce transport and storage costs, keep you in the loop, and keep your customers happy. These impacts aren’t always easily quantified in dollars and cents, but you’d quickly notice a negative impact if your trucking services were subpar.

So even if your rates increased a bit, you’re often still better off with a trucking company that you can trust to do the job right than one that may cost a little less but slips on service.

Secondly, we recommend regularly evaluating your existing truck services plan to determine if any adjustments could be beneficial. The trucking contract that worked well for your business last year may not be precisely what you need now or next year. If you’re a firm that experiences a fair amount of supply or demand fluctuation, there are a myriad of flexible trucking logistics approaches that may better fit your needs compared to a rigid, flat-rate plan.

At On Time Delivery & Warehouse, we take Cleveland trucking seriously. Our third-party logistics (3PL) experts who work closely with customers to refine their logistics strategies and ensure they’re only paying for what they need and getting the most for their money.

We help companies sidestep the most common sources of excess trucking service costs by constantly improving:

• Efficiency in route planning. We use route optimization software to shorten routes, reduce fuel consumption, and lower labor costs. We cut out excess empty miles, effectively managing backhauls and return trips.
• Operational practices. We focus on efficient loading and unloading, strict regulatory compliance, and proactive fleet maintenance to reduce breakdowns, delays, and higher insurance premiums.
• Fuel management. Even though fuel costs weren’t among the expenses increased this past year, that doesn’t mean we’re free to ignore it. We carefully monitor our fuel usage (and failure to use fuel-efficient driving practices). We’re also careful about how we negotiate fuel surcharges with suppliers so we can keep it affordable for our own clients.
• Staffing and labor practices. We strive for low employee turn over and optimal use of driver hours. Frequent staff turnover can increase all kinds of costs and disrupt operations. We value our staff. Drivers, logistics exerts, warehousing workers – we couldn’t do what we do without them. We take the time to ensure they have what they need to do their jobs safely, effectively, and with a smile.
• Equipment and technology. It would be impossible to provide premium trucking services without the right technology. So much in this industry has changed and evolved and advanced in recent years. We have done our part to keep pace with that, while still staying true to our core customer service principles.

If you have questions about our Cleveland, Ohio truck services, give us a call at (440) 826-4630 or request a quote!

Additional Resources:

How trucking costs reached a new high in 2023, By David Taub, July 11, 2024, Trucking Dive

More Trucking Blog Entries:

Last Mile Cleveland B2B Delivery: Why Customer Experience Still Matters, June 17, 2024, Ohio Trucking Company Blog