HDT Fact Book 2022: High Fuel Prices, Market Shifting Mark Industry Trends - Fleet Management

HDT Truth Ebook 2022: Excessive Gas Costs, Market Shifting Mark Trade Traits – Fleet Administration

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The situations that led to hovering trucking situations, charges, and earnings final 12 months are largely historical past at this level. The place issues go from right here, because the Fed raises rates of interest to sluggish the economic system and handle file inflation, is unclear. Trucking has lengthy been seen as an early indicator of financial cycles, however the pandemic and different world points have clouded the image.

Employment knowledge from latest months recommend that drivers are available for bigger carriers, though a lot of that development is probably going coming on the expense of very small carriers which can be failing as a consequence of file diesel costs and normalizing spot charges. These weaker spot market charges and skyrocketing gas prices throughout the first half of 2022 overshadowed robust freight volumes total and record-high costs for hundreds shifting beneath contract.


Sharp increases in diesel prices in the first half of 2022 are the main reason trucking conditions aren’t soaring like they were a year ago. FTR’s Trucking Conditions Index tracks changes in five areas affecting the U.S. truckload market: freight volumes, freight rates, fleet capacity, fuel price, and financing. FTR’s outlook is for conditions to continue close to neutral territory, with index readings in either low positive or low negative figures from month to month. - Sources: FTR, Energy Information Administration

Sharp will increase in diesel costs within the first half of 2022 are the primary purpose trucking situations aren’t hovering like they have been a 12 months in the past. FTR’s Trucking Situations Index tracks adjustments in 5 areas affecting the U.S. truckload market: freight volumes, freight charges, fleet capability, gas value, and financing. FTR’s outlook is for situations to proceed near impartial territory, with index readings in both low optimistic or low adverse figures from month to month.

Sources: FTR, Vitality Data Administration



Sharp increases in diesel prices in the first half of 2022 are the main reason trucking conditions aren’t soaring like they were a year ago. FTR’s Trucking Conditions Index tracks changes in five areas affecting the U.S. truckload market: freight volumes, freight rates, fleet capacity, fuel price, and financing. FTR’s outlook is for conditions to continue close to neutral territory, with index readings in either low positive or low negative figures from month to month. - Sources: FTR, Energy Information Administration

Sharp will increase in diesel costs within the first half of 2022 are the primary purpose trucking situations aren’t hovering like they have been a 12 months in the past. FTR’s Trucking Situations Index tracks adjustments in 5 areas affecting the U.S. truckload market: freight volumes, freight charges, fleet capability, gas value, and financing. FTR’s outlook is for situations to proceed near impartial territory, with index readings in both low optimistic or low adverse figures from month to month.

Sources: FTR, Vitality Data Administration



The top five costs per mile in 2020 stayed relatively consistent compared to the same numbers in 2019. Most of the costs, except fuel, rose slightly. The largest single line-item cost continued to be driver wages, representing 34% of operating costs. - Source: American Transportation Research Institute, “An Analysis of the Operational Costs of Trucking” Report

The highest 5 prices per mile in 2020 stayed comparatively constant in comparison with the identical numbers in 2019. A lot of the prices, besides gas, rose barely. The most important single line-item price continued to be driver wages, representing 34% of working prices.

Supply: American Transportation Analysis Institute, “An Evaluation of the Operational Prices of Trucking” Report


Shippers are paying traditionally excessive truckload charges to make sure that extra of their hundreds transfer beneath contract, lowering demand for vans on the spot market. The galloping spot market we noticed within the wake of COVID-19 and provide chain challenges led to the expansion of small carriers with their very own authority. However excessive gas costs and the slide in spot charges have had a profound for small trucking corporations and owner-operators that use the spot market, explains DAT. Spot charges don’t embrace a separate gas surcharge, which makes it troublesome for carriers to make sure that the speed they negotiate will adequately cowl their gas prices.


Contract rates and fuel surcharges have risen sharply so far this year, with June seeing record surcharges and contract rates. Spot rates, after a meteoric rise during the pandemic, have softened. Shippers are paying historically high truckload rates to ensure that more of their loads move under contract, reducing demand for trucks on the spot market. - Source: DAT Freight & Analytics

Contract charges and gas surcharges have risen sharply thus far this 12 months, with June seeing file surcharges and contract charges. Spot charges, after a meteoric rise throughout the pandemic, have softened. Shippers are paying traditionally excessive truckload charges to make sure that extra of their hundreds transfer beneath contract, lowering demand for vans on the spot market.

Supply: DAT Freight & Analytics



Meanwhile, since spot rates don’t have official fuel surcharges and diesel prices have hit record highs this year, carriers on the spot market are likely keeping less of that revenue, according to DAT.  - Source: DAT Freight & Analytics

In the meantime, since spot charges don’t have official gas surcharges and diesel costs have hit file highs this 12 months, carriers on the spot market are possible preserving much less of that income, in accordance with DAT. 

Supply: DAT Freight & Analytics



- Source: DAT Freight & Analytics

Supply: DAT Freight & Analytics


“Shippers are seeing elevated routing information compliance on the similar time truckers on the spot market are contending with excessive volatility in decrease charges and better gas prices,” mentioned Ken Adamo, DAT’s Chief of Analytics. “We count on these situations to proceed. Nonetheless, we now have but to see the glut of capability and total lack of freight that produced a chronic down-cycle in late 2018 and 2019.”


Despite challenges in truck production, the for-hire trucking fleet grew in the past year and a half, mostly among small fleets. The number of carriers grew from 196,228 in January 2021 to 324,609 in July 2022. The number of trucks grew from 1.97 million to nearly 2.6 million. The percentage of one-truck carriers grew some 10 percentage points, from 49% to 59%. Notes: Excludes private fleets that also hold for-hire authority. Excludes parcel carriers such as UPS, FedEx Ground. Includes only carriers holding active FMCSA authority as of the snapshot date. Carriers are required to update their profile only once every two years and do so on a staggered schedule. - Source: FTR analysis of FMCSA MCMIS database snapshots, March 2020 and July 2022

Regardless of challenges in truck manufacturing, the for-hire trucking fleet grew up to now 12 months and a half, principally amongst small fleets. The variety of carriers grew from 196,228 in January 2021 to 324,609 in July 2022. The variety of vans grew from 1.97 million to just about 2.6 million. The share of one-truck carriers grew some 10 share factors, from 49% to 59%. Notes: Excludes personal fleets that additionally maintain for-hire authority. Excludes parcel carriers comparable to UPS, FedEx Floor. Consists of solely carriers holding energetic FMCSA authority as of the snapshot date. Carriers are required to replace their profile solely as soon as each two years and accomplish that on a staggered schedule.

Supply: FTR evaluation of FMCSA MCMIS database snapshots, March 2020 and July 2022



Comparing a snapshot of pre-pandemic numbers from March 2020 with the most recent, July 2022, illustrates the growth among the smallest operations, due mostly to the surge in new carriers as drivers and leased owner-operators left larger carriers and got their own authority in order to take advantage of booming spot rates. In March 2020, one-truck fleets owned just under 6% of the trucks. By July 2022 that was 8.6%. However, even the largest carriers have seen growth. Notes: Excludes private fleets that also hold for-hire authority. Excludes parcel carriers such as UPS, FedEx Ground. Includes only carriers holding active FMCSA authority as of the snapshot date. Carriers are required to update their profile only once every two years and do so on a staggered schedule. - Source: FTR analysis of FMCSA MCMIS database snapshots, March 2020 and July 2022

Evaluating a snapshot of pre-pandemic numbers from March 2020 with the latest, July 2022, illustrates the expansion among the many smallest operations, due principally to the surge in new carriers as drivers and leased owner-operators left bigger carriers and obtained their very own authority to be able to reap the benefits of booming spot charges. In March 2020, one-truck fleets owned slightly below 6% of the vans. By July 2022 that was 8.6%. Nonetheless, even the most important carriers have seen development. Notes: Excludes personal fleets that additionally maintain for-hire authority. Excludes parcel carriers comparable to UPS, FedEx Floor. Consists of solely carriers holding energetic FMCSA authority as of the snapshot date. Carriers are required to replace their profile solely as soon as each two years and accomplish that on a staggered schedule.

Supply: FTR evaluation of FMCSA MCMIS database snapshots, March 2020 and July 2022


The Constrained Freeway System

This knowledge and evaluation first appeared within the August 2022 particular Truth Ebook situation of Heavy Responsibility Trucking.



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