What Is the Average Cost-Per-Mile in the Trucking Industry?

Cost-per-mile is a key metric for any trucking or freight company and can be a great indicator of financial performance and success. This metric incorporates multiple data points that include fuel costs, driver wages, maintenance costs, and more to break your total operating costs down into a more manageable metric. And with that in mind — it is important to have a benchmark to aim for and the average cost-per-mile in the trucking industry is a good aimpoint. Freight companies interested in tracking their cost-per-mile may want to know what the average cost-per-mile is in the trucking industry and we hope this quick overview will answer your questions. 

Cost-per-mile is a valuable metric that can be calculated with a simple formula. It is calculated by dividing the total operational expenses over a specific period of time by the total number of miles driven during that same period. The basic formula is:

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Cost-Per-Mile = Total Operating Costs ÷ Total Miles Driven 

Total operating costs in trucking include a wide range of factors that fit into a pair of primary categories — fixed costs and variable costs. Key cost factors include fuel expenses, driver wages and benefits, truck and trailer lease or purchase payments, repair and maintenance costs, insurance premiums, tires, tolls, permits, and additional overhead expenses.

According to the latest data available from the American Transportation Research Institute (ATRI) in 2023, the average operational cost-per-mile reached a record high of $2.27 per mile. While this represents a slight 0.8% increase over the average cost in 2023, it has been noted that when you exclude the variable cost of fuel, the marginal cost-per-mile actually increased by 6.6% — driven by increases in driver wages, equipment payments, maintenance, and insurance premiums.

Will Cost-Per-Mile Go Down in 2025?

Predicting cost-per-mile trends for 2025 and beyond is complicated to do with any kind of certainty and involves navigating multiple economic factors and industry-specific pressures. While the drop in fuel prices seen in 2023 and early 2024 provided some relief for trucking and helped moderate the overall cost increase, several other factors could cause costs to increase.

Key factors that will influence cost-per-mile in 2025 include:
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• Fuel Prices: Although fuel prices have continued to get lower, fuel remains a major variable cost that is dependent on global markets and geopolitical events.
• Driver Wages: The ongoing driver shortage and competition for qualified drivers may continue to push wages and benefits higher in 2025.
• Insurance Premiums: Increased equipment values and risk of legal implications contributed to double-digit insurance cost increases in 2023, a trend that may continue.
• Maintenance Costs: An aging truck fleet and the increasing complexity of newer vehicles may continue to drive up repair and maintenance expenses.
• Equipment Costs: Higher interest rates and manufacturing costs impact the price of new trucks and trailers for freight companies.
• Economic Conditions: Freight demand influences rates and truck use, impacting revenue relative to fixed costs.
• Regulations: Environmental regulations, safety mandates, and hours-of-service rules can impact operational costs.
• Potential Tariffs: Proposed or enacted tariffs on international trade, particularly those applied to raw materials used in truck manufacturing or maintenance, could lead to increased equipment and operational costs. Tariffs may also disrupt freight volumes by impacting consumer prices and shifting supply chain dynamics.

While lower fuel costs may provide potential savings for trucking and freight companies, the combined costs of insurance, maintenance, equipment, and the impact of potential tariff makes a significant decrease in the average cost-per-mile unlikely in the near future. This means that proactive cost management remains critical for trucking and freight companies.

How Does a TMS Improve Cost-Per-Mile?

Regardless of industry averages — trucking and freight companies can be proactive and work to lower their own cost-per-mile with a variety of strategies and the right tools. Technology plays a key role in optimizing performance and reducing waste.

Here are four effective strategies to help reduce your cost-per-mile:
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1. Employ Technology to Optimize Operations

Modern technology provides a wealth of operational benefits for trucking companies. Transportation Management System (TMS) platforms — like TransPlus TMS — automate workflows, optimize load planning, improve dispatch efficiency, and provide powerful analytics to help identify opportunities to reduce costs. Integrating telematics into your TMS allows for real-time tracking of vehicle location, speed, fuel consumption, and driver behavior, providing you with critical data to help further reduce fuel use and improve safety.

2. Prioritize Route Optimization and Fuel Efficiency

Fuel is consistently one of the largest variable costs for trucking and freight companies. More efficient route planning can help you reduce fuel costs. Utilizing a Transportation Management System with advanced route planning capabilities helps find the most efficient routes based on distance, traffic, tolls, and fuel prices. This helps minimize out-of-route miles, reduce idle time in congested traffic, and optimize speed, to save on fuel and lower your cost-per-mile.

3. Improve Maintenance

Unexpected breakdowns lead to costly repairs, towing fees, and significant downtime that incurs high costs, which all have a negative impact on cost-per-mile metrics. Employing a more proactive maintenance schedule that can be tracked and managed via a TMS with maintenance reminders and repair logs, helps prevent major failures, extends the lifespan of fleet vehicles, and keeps your trucks on the road.

4. Better Manage Driver Wages and Carrier Rates

For carriers, optimizing driver schedules and routes reduces time where drivers may not be as productive. For freight brokers and shippers, a TMS can provide additional visibility into carrier performance and market rates, helping find reliable transportation partners at competitive prices. Efficient carrier sourcing helps ensure capacity needs are met without overpaying and can directly impact the cost of moving freight.

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READ MORE: Top 5 Ways a TMS Reduces Cost-Per-Mile in Trucking 

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While the average cost-per-mile in the trucking industry provides a valuable benchmark, understanding and actively managing your own operational costs is critical for success. If you have been asking — what is the average cost-per-mile in the trucking industry — we hope this overview has answered your questions and highlighted how you may be able to combat rising costs with the right tools and strategies.

Take control of your costs and optimize your trucking operations with TransPlus TMS. Contact TransPlus today for a demo of our transportation management system platform!

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