Learn about current trucking rates and learn about industry conditions.
What is the going rate for trucks per mile?
To continue to offer competitive trucking rates per mile, you need to understand how much trucking companies charge per mile. The cost per mile is influenced by factors such as:
- gas price
- Car workshopand maintenance costs.
- truck insurance.
- Death.
Financing is also a cost factor that can affect cost per mile. The cost of financing trucks and trailers ranges from 0% to 30% of sales.
Vonjulio 2021las tasas de kilometraje de camiones se mantienen estables. Estas son las tarifas actuales para los tipos de camiones más populares:
- Average van rates range from $2.30 to $2.86 per mile.
- Refrigeration rates average $3.19 per mile, with the lowest rates in the Northeast at $2.47 per mile.
- Average flat rates are $3.14 per mile.
Fuel prices have risen steadily over the past year and are a big variable when calculating transportation costs.
The domestic diesel price was $3.34 per gallon with an increase of $0.05 from June 2021 to July 2021. However, in 2023 prices have risen sharply with high rates of volatility in the price and availability of supply.
Average price per mile for self-driving
Unlike company drivers, entrepreneurs are truckers who own or lease their own trucks. These people often work with a trucking company to provide administrative support and find trucking jobs.
Owner/operators typically earn 70-80% of the loads they move. For example, if van transportation costs $3.14 per mile, the owner/operator can earn up to $2.51 per mile. If they travel frequently, they can earn up to $156,000 a year.
Where does the rest of your price per kilometer go? The remaining 20 to 30 percent goes to your shipping company. An owner-operator of a trucking company benefits from access to load orders, in-house mechanics, and optimization of the service station location.
Being an owner-operator is a great way to earn more money, but it also means dealing with stress and finances on your own.
For example, you may have to pay for truck maintenance, health insurance, and other business expenses.
If you are not willing to take the additional risks and costs, becoming a professional driver is always a viable option.
Transportation Mileage Rates 2023 Frequently Asked Questions:
Here are the top questions truckers have in 2023:
- Do transport companies pay for empty kilometers?
- What is a good price per kilometer for trucking companies?
- What is the going rate for trucks per mile?
- Why are road transport rates so low?
- How much do owners earn per mile?
- How much does a freight forwarder charge per load?
Do transport companies pay for empty kilometers?
Empty miles, also known as no revenue miles or inactive miles, are miles earned by the truck when it is not generating revenue.
This happens when there is a payload at the destination but no payload coming back. The empty miles range from33 – 40 %of total miles driven, making it a huge waste for your trucking business.
To avoid empty trips, try to minimize unnecessary freight movements and improve your schedule so your trucks move cargo as quickly as possible.
If you can't avoid an empty mile, it's best to add a portion to your transportation cost per mile.
What is a good price per kilometer for trucking companies?
While it's hard to calculate an average truck mile rate, keeping up with industry news will always give you a good idea of average truck rates.
To answer your question, what is the current truck mile rate? Current truck mile rates in 2023 are:
- Van fares are $2.76 per mile.
- Refrigerator rates are $3.19 per mile.
- Table rates are $3.14 per mile.
Please note that these are only average truck kilometer figures and your business may benefit from a different rate. Offering the lowest rates may not be enough to generate your income, but a rate that is too high can set you apart from the competition.
The same goes for how much you offer your drivers. You need to know what the average rate per mile is for truckers in your area so you can be fair and competitive at checkout.
What is the going rate for trucks per mile?
The average truck rates per mile are:
- Average truck prices: Between $2.30 and $2.86 per mile on average.
- Refrigerated Truck Rates: Average $3.19 per mile.
- Van Rates: Average $3.14 per mile.
Truck freight rates are affected by many things. Some key factors are:
- Distance to the destination, including detours where applicable.
- Shipping weight, with heavier loads generating higher rates per mile.
- Shipping density affecting the amount of space you need on the truck.
- Cargo Class, a measure of portability defined by the National Motor Freight Classification (NMFC).
- Delivery time.
- Additional costs such as loading and unloading, as well as storage fees.
Why are road transport rates so low?
Recent trucking rates are low due to higher supply compared to available demand.
When the pandemic started, people needed more stuff, and the car rental market skyrocketed. Trucking companies launched huge recruitment drives and many people decided to start their own trucking business.
But now, with shipping volumes falling to pre-pandemic levels, there are simply too many truckers and too little demand for truck shipments. As the laws of supply and demand dictate, a wide supply means that prices will fall.
However, that is not the only thing holding the trucking industry back. Recent world events, such as the war in Ukraine, which sent fuel prices up, and the resurgence of COVID in China's export hubs, which sent prices of raw materials soaring, have made it difficult for truckers to turn a profit.
However, the fall in demand for consumer goods does not mean that truckers are doing badly. Although shipments of consumer goods have declined, 70-80% of freight is manufactured goods, and manufacturers are still willing to pay for truck shipments.
How much do owners earn per mile?
Owner-operators typically complete 70-80% of their load per mile.
Take van rates as an example: a van owner/operator can earn up to $2.51 per mile off the average price of $3.14 per mile.
The rest of the money goes to the transport company to pay for services such as:
- shipping support.
- Internal Mechanics.
- Tank cards.
Unlike company drivers, who can only earn 38 to 52 cents per mile for the same workload. However, the greater reduction that owner-operators receive carries additional risks.
Although they profit from their trucking company, owner-operators are still independent contractors who have to do everything themselves.
While owner-operators can make more money, they must also set aside more money for auto and life insurance, fuel and maintenance, and taxes.
Because of this, the owners and operators tend to be experienced truckers. Usually those who have worked as a company driver for several years and want more freedom and make their own decisions.
If you are a new truck driver or just don't want to take more risks and responsibilities, you can become a company driver first to gain more experience and confidence.
How much does a freight forwarder charge per load?
Freight forwarders typically charge 25-35% of the freight.
A freight broker is an intermediary between a shipper and the carrier. They pick up the shipment from the customer and contact a fleet carrier to get the shipment to its destination.
Carriers like to work with freight forwarders because the forwarder takes care of everything related to the carrier and becomes the single point of contact for updates. On the other hand, freight forwarders also like to work with freight forwarders because they can optimize routes and offer truckers multiple shipments to reduce idle miles.
Why Truck Rates Matter
Your number one goal is to have a profitable trucking business and tracking average truck mileage rates is the best way to ensure your business continues to grow. The key is getting the cost per mile hauled right for you to win jobs and make a profit.
I hope this article has taught you everything from the average freight shipping rate per mile to standard truck shipping rates per mile.
In summary, the trucking rates you use for your business can be influenced by:
- Distance between the start and end point.
- Shipping weight and density.
- type of truck being driven.
- Current fuel prices.
By becoming an expert on average freight rate per kilometer and keeping up with industry trends, you can offer competitive prices and attract more customers, which means more sales.
Photo Credit: Zetong Li viaUnsplash
FAQs
Will trucking freight rates go up in 2023? ›
Shippers are in the driver's seat as spot and contract rates continue to soften, but industry analysts said rates likely will stabilize throughout 2023.
What is the current freight rate per mile? ›According to the latest data from the American Transportation Research Institute (ATRI), the average cost of trucking in 2021 was $1.855 per mile.
How much should a trucking company charge per mile? ›...
Average Motor Carrier Cost Per Mile 2021 (NPTC)
| 2021 Cost | % of Total | |
|---|---|---|
| VEHICLE-BASED | ||
| Fuel costs | $0.36 | 12% |
| Equipment and maintenance | $0.57 | 20% |
| Truck insurance | $0.11 | 4% |
Experts expect truck prices to continue falling in 2023, thanks to continued downward pressure. Data shows that the average retail price is down a few percentage points, and that trend may continue into at least the first half of 2023. The trend is great news for fleet owners who want to expand in the coming years.
What is the trend for freight rate in 2023? ›In 2023, freight prices get expected to be adjusted and decrease by 30–40%. It's wonderful news that freight charges are declining, especially for importers. It is extremely doubtful that they will return to the 2019 level.
What is the trend for freight costs in 2023? ›Sea, air, and trucking models all predict dropping volumes, say lower shipping costs could make some goods more affordable. Freight rates on sea, air, and highway routes are on track to drop from their pandemic highpoints during 2023, according to a trio of forecasts released this week.
How much does trucking cost per mile 2022? ›According to The American Transportation Research Institute's (ATRI) 2022 update, the total marginal cost of trucking grew by 12.7% in 2021 to $1.855 per mile, the highest on record.
How much is flatbed trucking per mile 2022? ›In March 2022, the spot rate price for a one mile flatbed drive in the United States was 3.39 U.S. dollars on average.
What is a good cents per mile trucking? ›Average truck driver pay per mile is between 28 and 40 cents per mile. Most drivers complete between 2,000 and 3,000 miles per week.
What do most owner operators make per mile? ›[…] How Much Can You Make As an Owner Operator? Owner operators have the potential to make significantly more money than a company driver. While company drivers make between 38-52 cents per mile, owner operators typically make about 70% of the load, which would be $1.75 on a load paying $2.50, for example.
How much is hotshot trucking per mile 2022? ›
Hot Shot Trucking Rates Per Mile 2022
The hot shot trucking rates per mile can range from anywhere between $1 up to more than $4.00 per mile.
Despite a significant appreciation in diesel prices in 2022, which has curtailed some of the trucking cost declines, we expect spot rates to continue to trend lower year-over-year,” says Krasov.
What will happen to trucking in 2023? ›In 2023, trucking companies' pricing will likely change for the better or worse. If the market continues to decline, trucking companies will have to lower their prices even further. If the industry experiences positive growth, the costs can rise to what they were before the decline.
What is the US freight transportation forecast to 2023? ›FTR forecasts utilization rates will average 95.8% this year and 91.6% in 2023 — still above the 20-year average of 91.2%. During the last freight recession in 2019, utilization rates were much weaker, at 88%.
How much will a 2023 semi cost? ›Average MSRP for heavy duty trucks increased from $152,169 in 2021 to $177,413 in 2023.
What is the forecast of freight rates? ›It is estimated that freight rates will be corrected and will drop by 30-40% in 2022. The fact that freight rates drop is good news, especially for importers. However, it is highly unlikely that they will drop back to the 2019 level.
Are freight rates dropping? ›Freight cost increases 2022 chart
Now two years into the supply chain crisis, rates have dropped significantly – although on some lanes prices are still much higher than they were pre-pandemic.
McCown anticipates that the carriers will be profitable in 2023 with a net income to revenue margin in double digits but with aggregate quarterly profit levels below the Q4 level recorded in 2022. More aggressive capacity management will be a central factor as lines doggedly avoid red ink this year, McCown suggested.
What are flatbed rates for 2023? ›Flatbed Freight Rates – January 17, 2023
National average flatbed rates are currently $2.78 per mile, $. 01 higher than the December average. The Midwest has the highest average flatbed rates at $3.11 per mile; the lowest rates are in the West, with an average of $2.41 per mile.
Arrive Logistics forecast spot truck freight rates to hold “relatively stable” in 2023 (after falling in 2022) and contract rates to “normalize,” falling from pandemic highs as freight tonnage declines as economic conditions move toward pre-pandemic levels.
Why are freight rates so high right now? ›
International shipping rates have peaked. So, many of you might be wondering why shipping has become so expensive recently. The primary reason for this increase is the world's nemesis: COVID-19. The pandemic has destroyed the global supply chain since 2020.
What is the highest pay per mile for truck drivers? ›- Company Team Driver. $0.48 - $0.75. per mile. Up to 6,000 miles per week. Estimated average of $3,154 per week.
- Company Solo Driver. $0.40 - $0.64. per mile. Up to 3,000 miles per week. ...
- Owner Operator Driver. $0.94 - $1.79. per mile. Up to 3,000 miles per week.
| Expense Category | Low Range | High Range |
|---|---|---|
| Driver Compensation | $0.48 per Mile | $0.83 per Mile |
| Fuel | $0.40 per Mile | $0.55 per Mile |
| Equipment Financing | $0.00 per Mile | $0.40 per Mile |
| Maintenance | $0.09 per Mile | $0.40 per Mile |
Again, these are just averages to give you an example, and nothing is set in stone. Generally, hot shot load rates sit around $1.50 per mile. Jobs that are more complex or more urgent can pay up to $2 per mile. And, of course, jobs that are easier to complete sometimes pay a minimum of $1 per mile.
What is a good mile price? ›With most frequent flyer programs, it is reasonable to expect to get at least 1.4 cents per mile value. The actual value you get from your miles will vary depend upon how the miles are used. Please also see: What are oddball airline miles worth?
What is a good profit margin for trucking? ›The average net profit margin of a trucking company averages between 2.5% and 6%. That means it can be a profitable business and an industry that you can make a decent living from, provided you get into the trucking business with your eyes wide open.
How do you figure cost per mile? ›Divide your expenses by mileage
Calculating cost per mile becomes a simple equation once you know your mileage and total expenses. Divide your total expenses by the total number of miles driven, and the result is your cost per mile.
Today, retailers have too much inventory and consumer demand has dropped due to inflation and renewed spending on services. The result is weakening demand for truck capacity and falling trucking rates. Truckload spot market rates are below contract prices and 15% lower than a year ago.
What state pays owner operators the most? ›...
10. Oklahoma.
A: Most individual long haul drivers average from 100,000 miles to 110,000 miles a year, with an average daily run of about 500 miles a day.
How much can a 40 ft hotshot haul? ›
Freight Capacity Restrictions
Hot shot trailers can only legally haul 16,500 pounds of freight on their deck and measure 40 feet at their lengthiest.
The highest rates go to Class 500 freight, which is lighter but takes up a lot of space. Nowadays, terms like "LTL" and "hot shot" might be used to describe the same load. You can use the freight class as a starting point to figure out how to price that load, but there's more that goes into the rate.
Are trucking freight rates going up? ›Thus, even with rates generally down to begin 2023, carriers must incorporate that expected return to normalcy - and thus, contract rates are projected to increase slightly for the year - and this applies to both truckload and intermodal.
What is the average freight cost increase for 2022? ›Year-over-year changes in freight rates in 2022
Shipments, freight moved by companies, increased by 0.4% year over year, according to the report, but declined nearly 2% month over month.
- Ice Road Drivers. ...
- Oversized Load. Salary: $71,442 per year. ...
- Specialty Vehicle Haulers. Salary: $82,099. ...
- Team Drivers. Salary: $96,573. ...
- Private Fleet. Salary: $95,999 - $110,000 per year. ...
- Mining Industry Drivers. Salary: $58,862. ...
- Liquids / Tanker. Salary: $88,024. ...
- Hazmat Drivers. Salary: $65,466.
The S&P Global Transearch baseline forecast overall is for freight tonnage to increase 1.36% for 2023. Not all freight modes have the same prospects, however. For rail, the range of 2023 tonnage growth is from a small 0.15% increase for rail carload tonnage up to a rebound of 2.9% for intermodal rail tonnage.
Are freight prices going up? ›Freight cost increases 2022 chart
The past few years have been volatile for shippers around the world. At the beginning of the pandemic, attempts to hedge against dramatic rate drops via capacity management contributed to an increase in prices when consumer demand shot up in the summer of 2020.
Long-distance freight trucking in the U.S. is expected to have good growth through 2025, due to increased retail spending and rising trade volumes, which will increase shipments to and from U.S. ports that require trucking services.
What is the future of trucking? ›Future Trends of the Trucking Industry
According to the American Trucking Association's US Freight Transportation forecast, the freight trucking industry will undergo a 24% increase in 2022. This will also account for a 67% of revenue increase for the trucking industry in general.
A spot rate, also called a spot quote, is a one-time fee that a shipper pays to move a load (or shipment) at current market pricing. Spot rates are a form of short-term, transactional freight pricing that reflect the real-time balance of carrier supply and shipper demand in the market.