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Tracking the trends
Benchmarking
Success
TCA’s Profitability Program helps
carriers survive, even thrive,
regardless of market conditions
By Kris Rutherford
There’s no doubt about it: The cost of trucking is on
the rise.
While increasing prices are pretty much par for the
course, recent cost increases have exceeded those
recorded in previous years.
The American Transportation Research Institute (ATRI)
reports that the average cost of operating a truck in 2022
was $2.251 per mile. That was the first time this average
crossed the $2 mark since the organization began tracking
data in 2008. Year over year, operating costs in 2022 increased
21.3% over 2021.
Why? The reasons are many: Freight rates have fallen.
Fuel costs have spiked. The cost of maintenance and repair
on trucks has risen. In addition, driver wages are on the
increase — which is not a bad thing in itself.
Like ATRI, the Truckload Carriers Association (TCA) also
tracks costs; however, TCA does so on a more frequent basis
through its Profitability Program (TPP). The program is
designed to share vital information with member carriers
on a timely basis so companies can compare in-house results
with how the rest of the industry is performing. These
comparisons allow carriers to set benchmarks — standards
against which companies’ performance is measured.
Carriers tend to keep an eye on the successes of the
top performers and learn what changes can be made in
operations to move themselves into the “Best in Class”
competition.
As noted by Dave Broering, president of NCI Integrated
Logistics, “In a softening market, with costs rising at an
unparalleled pace, carrier benchmarking becomes more
critical than ever.”
In a February TCA webinar, “The Benefits of TCA’s Profitability
Program and Benchmarking,” Jack Porter, TCA’s
Profitability Program managing director, provided some
insight into the association’s program, current trends,
and suggestions for cost containment.
The foundation of the TPP is for carriers to seek continuous
improvement, set benchmarks for comparison,
challenge business comfort zones, and navigate trucking
cycles and challenges.
Carriers that participate in the program share a primary
component that is vital to improving a company’s profitability
— a set of stated core values. Those core values go beyond
simply making a profit; they set strategies and develop
action items that stimulate progress. In addition, company
management is dedicated to consistency. Everyone in these
18 Truckload Authority | www.Truckload.org TCA MAY/JUNE 2024