The trucking industry is a multi-billion dollar industry that keeps our economy going. Without freight services, businesses and households would have nothing, from food to toilet paper. However, most people don't really understand how big the industry really is. What's more, big data is critical to helping the trucking industry overcome two huge problems - driver shortages and fuel costs, two major factors driving freight rates. Take a closer look at both areas through big data.
Truck Driving Job Data
The biggest thing we hear from trucking is a shortage of drivers. The number of trucking jobs needed in the U.S. is projected to increase by 2025 so far, but what about the employment of truck drivers? The number of trucking workers has grown from about 1.2 million jobs since January 2010, according to the U.S. Bureau of Labor Statistics. As of May 2018, an estimated 1.5 million people worked in the trucking industry.
Operating cost of freight
Another key area to consider is the overall operating cost of trucking. In the trucking industry, trucking companies of all sizes get a share of the pie when it comes to freight costs. According to the National Transportation Institute, the cost of trucking includes:
- Fuel costs about 40% of the total cost
- 10% payment on truck lease or loan
- 9% for truck maintenance and repairs
- Truck insurance is 4%
- 2% for licenses and permits
- 2% of tires
- 1% charge
- Driver salary is 26%
All of these fees have an impact on the shipping price. For example, when crude oil prices rise, we see diesel prices and freight rates rising. When it comes to fuel, this is by far the largest part of any trucking company's budget. Therefore, it is easy to understand how fuel prices directly affect freight rates.
However, when interest rates rise, these loan payments and lease costs start to rise. The point is, as long as the economy affects the operating costs of trucking, it directly affects the cost that transportation customers pay.
Big Data Bottom Line
A shortage of drivers and rising fuel costs are just some of the reasons for the steady rise in freight rates. As you can see, it's a lot more complicated than any single answer. Other factors driving interest rates soaring include natural disasters, seasons and social disruption. Instead of trying to track the best shipping rates for your heavy equipment shipping needs, we recommend you turn to an expert.
