“The numbers never lie!”
The wise and seasoned accounting personnel, as well as business owners, shareholders, and stakeholders around the world shout to the rooftops.
“The Numbers never lie!”
Even in business, either as a fleet owner, owner-operator, independent, CEO, and even down to the business of one’s self—I will agree– The numbers never lie.
I found some interesting information this month, in the Aug 2019 issue, of FleetOwner magazine (fleetowner.com) In their article titled, “Trucking by the Numbers; Decision-shaping facts, statistics, and trends”; they give some pretty great insight and knowledge—so important that it is best I give you the details here!
Direct from their statistics of analysis
1. 5.8% of all full-time jobs are related to trucking.
2. 70% of all goods in US are transported by trucks.
3. 90,000 new drivers are needed every year to keep up with demand.
4. In 2017, the American Trucking Industry posted more revenue than the GDP of more than 150 nations.
5. Projected growth from 2015 through 2045, in all sectors of transportation-truck, rail, water, and air- is expected a 40% increase overall, with trucking showing 44% growth, and Aviation showing 234% growth– the only two projecting over the average rate expected.
6. 84% of America’s Import and Export freight goes through only 10 ports. The top 5 are, New Orleans at 97.2 million tons, Los Angeles with 38.7 million tons, Long Beach with 35.6 Million tons, NY/NJ at 36.7 million tons, and Savannah with 23.7 Million tons– The last 5 only account for 65.1 million tons collectively.
7. Median wage annually for truckers in 2018 was $43,680.
8. 40.6% of all trucking jobs are held by minorities. Outpacing national average when all jobs are compared; overall, minorities hold only 22% of jobs in the country.
9. Professional drivers are 10x more likely to be killed on the job, and nearly 9x more likely to be injured on the job compared to the average worker.
10. Fatalities in crashes involving large trucks increased by 9% from 2016-2017. Combination trucks involved in fatal crashes increased by 5.8% and single unit straight trucks involved in fatal crashes also increased by 18.7% in same period.– This is further expounded by 94% involving driver related factors such as impaired driving, distraction, and speeding or illegal maneuvers. Speeding caused 10,000 highway fatalities, and 82% of victims in fatal large truck crashes were not an occupant of the truck(s) involved.Aug2019 Fleetowner Magazine pg 24-38
While these numbers show pretty good results overall; I am now questioning whether the ELD’s, are really helping our industry. The numbers are showing increases in crashes since implementation. Not only are we seeing these increases, but I am seeing the desperate need to increase driver capacity at a feverish rate along training, just to keep up with demand.
Meanwhile, we overall are actually showing a decrease in productivity–with the increase of overall regulation mandates that the FMCSA has implemented. That tell’s me once again–that the government did not realize the substantial loss of delivery volume that the new rules would cause. Guess that is what happens when you have people in charge that have ZERO experience with the industry. We may be old-salty road dogs–however– we know how to get the job done!
Some more numbers for you
All of the numbers are as of 2017, behind at least 1 yr- in full.
Quoted from Aug2019, FleetOwner Magazine (fleetowner.com)
Average Marginal Costs per Hour $66.65– carrier costs
Average Marginal Costs per Mile $1.691 – carrier costs
Average By Region-
North East- $1.735
South East- $1.553
South West- $1.536
West- $1.616pages 38, 37, and 30 respectively- Aug2019 FleetOwner Magazine
As you all know, I have been a huge proponent for charging more for detention than most others. The reason are these numbers here. At a $66.65 Cost per hour; a standard rate of some Volume Carriers and many “Container” Carriers- is in the $65 per hour rate; after the first 2 free hours. This is losing money- PERIOD!
When you see this number on charts from major publications around the country; and do these number analysis for yourself, other carriers- and known these are pretty standard—then the reality really takes home.
This is why I tell independents- JUST BECAUSE YOU ARE IN THE TRUCK DOES NOT MEAN YOU CAN TAKE CHEAPER FREIGHT- YOU MUST ACT AS IF SOMEONE IS DRIVING OTHER THAN YOURSELF, AND PAY YOURSELF ACCORDING TO THE JOB(S) PERFORMED.
These guys that are selling freight to you at anything below the break-even point–are doing nothing but damaging the industry. Even $2 per mile; when you add in technology needs, now days- $2 is almost a necessity, no matter, what you are hauling.
This is also a reason why I didn’t pull from certain regions- usually the cost to move will increase your overall; by simply moving to a better area 150 miles away-.
I would rather spend the costs to move the truck to better rates, than take a loss moving peoples cheap freight; when more people realize the truck numbers of doing business, and suddenly their freight does not move– then and only then will you see this practice change.
You cannot blame anyone for the matter, either; it is not just the brokers, customer base, nor anything in between– It is caused by the basic knowledge and education that should be sought out by the up and coming owners, independents, and owner operators. The people, who need the education and understanding of the basic foundation to run just one truck; before you buy 2-3-4-110-2000 trucks.
As my Granddad would have said, “The Foundation will always tell you how large a building can be.”
Build the foundation first– then and only then will you know how big you could go.
This website has always, and will continue to be dedicated to the owners and future fleet owners — the 80+% of carriers that are below 150 trucks in their fleet– Build that foundation–then boost your growth past the small fleet status —The Sky is as big as you can dream; learn; grow ; and prosper!
Til Next time
To Clear Desert Nights and beautiful backroads,