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How Expensive is Congestion for the Trucking Industry?

How Expensive is Congestion for the Trucking Industry?

Trucking is an industry where time is money. The longer a driver spends on the road, the more expensive their trip will be. More active time means more maintenance and more fuel usage. In addition, truckers who find themselves on the road longer than planned may end up experiencing problems with client satisfaction – and this can lead to severed business relationships.

Congestion is the type of problem the freight industry is forced to deal with. Despite professional logistics management, no carrier can avoid crowded roadways at all times. So just how expensive is this problem for trucking? According to a recent report, the cost is currently in the billions.

The American Transportation Research Institute (ATRI) reported that congestion on the US National Highway System (NHS) cost the trucking industry over $63.4 billion in operational costs during 2015.

In order to compile the data, the ATRI used various sources including a massive GPS database. Delays totaled close to 1000 million hours of lost productivity, which equates to over 350,000 commercial truckers sitting idle for one working year.

Florida and Texas led the way in losses, with each state coming in at $5 billion and the next eight below them each coming in at around $2 billion.

The Pareto Principle was apparent in the results, with an 80/20 distribution showing up in the location of congestion. Around 80 percent of congestion was concentrated on around than 20 percent of network mileage. Not surprisingly, this congestion occurred largely in urban areas.

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