Supply Chain Optimization

Obvious Yes— But It Still Hurts

by Tom Moore on Aug 16, 2022 10:01:00 AM

American Transportation Research reports trucking operating costs = $1.855 per mile, a 12.7% year-over-year increase only slightly offset by a 14.8% decrease in deadhead mileage
 
Trucking companies hired about 73,000 new workers in the 12 months ended in July. In a time of shortage, how did they do that? Econ 101 says — “simply pay more money”:
  • In-house fleets managed by companies like Walmart Inc., Sysco Corp., and PepsiCo Inc., driver wages reached about $69,700 last year, up 11% from the previous year. Add to those fringes, and you see the issues. And it is not just over-the-road full truckload carriers — Old Dominion Freight Line Inc. says salaries, wages, and benefits increased nearly 20% in the year's first half from the year-earlier period.
  •  The average referral bonus hit $1,150, up $150 from the previous survey
Topics: #cost #supplychain Supply Chain Load Building Optimization SaaS #Transport #economy

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