ATRI's Latest Operational Costs Data: High Costs, Low Rates

Operational Costs Squeeze Trucking Profits in New ATRI Report

Trucking companies in the U.S. are under growing pressure from high non-fuel expenses and shrinking profit margins. The latest update from the American Transportation Research Institute (ATRI), An Analysis of the Operational Costs of Trucking: 2025 Update, shows how sharply operational costs are impacting the trucking industry.

Operational Costs Rise Despite Fuel Price Relief

In 2024, the average cost of operating a truck was $2.260 per mile, according to ATRI. That’s a slight 0.4% drop from 2023, mostly because of lower diesel prices. But when fuel is excluded, operational costs jumped 3.6% to $1.779 per mile—the highest non-fuel cost ever recorded by ATRI.

The biggest increase came from truck and trailer payments, which rose 8.3% to $0.390 per mile. Driver benefits climbed 4.8%, and driver wages—while increasing by just 2.4%—still remained a major cost at $0.798 per mile. Together, these trends show that trucking’s financial challenges run deeper than fuel prices alone.

Trucking Profit Margins Fall Under Weight of Operational Costs

ATRI’s report highlights how these rising operational costs are squeezing profits. In 2024, the average operating margin across most sectors dropped below 2%. Truckload carriers were hit hardest, posting an average margin of -2.3%.

Freight volumes remained weak, and contract and spot rates continued to slide. That drop in revenue, paired with rising expenses, left many carriers in the red.

Managing Operational Costs Through Capacity Cuts

Carriers responded to rising operational costs by cutting capacity. Fleet size shrank by 2.2% as companies sold trucks. The average number of drivers per truck dropped to 0.93. Non-driver staffing was reduced by nearly 7%.

Still, there were some positive signs. The average truck age fell to 3.4 years, and trucks were used more often—running an average of 82,677 miles over 268 operating days. Dwell time per stop and breakdown rates improved slightly, indicating that carriers are doing more with less.

Regional Costs Show Stark Differences

Regional differences in operational costs widened in 2024. The Northeast remained the most expensive region, with costs averaging $2.461 per mile. That was due in part to high driver wages and the nation’s highest insurance premiums.

Meanwhile, the South Central region saw the biggest drop in costs—down 9.2 cents per mile—thanks to lower fuel and wage expenses. Across sectors, less-than-truckload (LTL) carriers faced the highest costs overall at $2.49 per mile, followed by specialized ($2.32) and truckload ($2.13). When fuel was excluded, operational costs rose more than 5% for both the truckload and specialized sectors.

Small Fleets Struggle Most With Operational Costs

Small fleets and owner-operators were hit especially hard. While they benefited from falling fuel prices, they faced higher insurance premiums and rising costs for truck payments and benefits. Fleets with fewer than 26 trucks reported some of the largest increases in benefit costs per mile.

Owner-operator contract rates dropped slightly to $2.09 per mile, slipping below the average operational cost of $2.260. That gap pushed many out of the market, contributing to a 1.3% drop in single-truck carrier registrations.

Outlook: Costs Expected to Remain High in 2025

Data from early 2025 shows that key components of operational costs are still trending upward. Insurance premiums rose 5.8%, toll costs increased 4.3%, and equipment payments climbed another 3.9% in the first two months of the year. Driver benefits went up another 3.5%.

Fuel costs are expected to stay relatively stable through 2025. However, global events like the Israel-Iran conflict and new tariffs could still create fuel price volatility. If diesel remains steady, fleets may get some breathing room, but costs overall are likely to stay high.

Greg Hodgen, President and CEO of Groendyke Transport, emphasized the value of ATRI’s benchmarking: “The trucking industry is facing the most challenging freight market in years, with loads down and costs increasing.”

Operational Costs Benchmark Critical for Trucking’s Future

ATRI’s report underscores the importance of understanding and managing operational costs. For many carriers, every penny counts. With freight volumes still soft and key expenses rising, accurate cost data is essential for survival and strategy in 2025.