Wednesday, November 25, 2009

Operational Metrics- The Business of Trucking

Insurance agents generally really do not understand the financial benchmarks that allows truckers to assess their viability and profitability. Here are 4 tools courtesy of RLI Marine:


1. Average length of haul.

Shorter lengths of haul frequently involve higher rates per mile from customers, fewer miles per truck, and a greater percentage of non-revenue miles caused by re-positioning of equipment.

2. Average freight revenue per total mile (excluding fuel surcharges).

Average freight revenue per loaded mile + Non-Revenue miles (excluding fuel surcharge revenue).

3. Average miles per tractor.

4. Average freight revenue per tractor per week (excluding fuel surcharges).

Average freight revenue per tractor per week (excluding fuel surcharges) is a key measure of asset productivity. This operating metric takes into account the effects of freight rates, non-revenue miles, and miles per tractor. Calculating average freight revenue per tractor using all trucks takes into account the percentage of fleet that is unproductive due to lack of drivers, repairs, and other factors.


Operating high quality, late-model equipment contributes to operating efficiency, helps recruit and retain drivers, and is an important part of providing excellent service to customers. Operating tractors while under warranty minimizes repair and maintenance costs and reduces service interruptions caused by breakdowns. Order equipment with uniform specifications reduces parts inventory and facilitates maintenance.

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