New ATRI report indicates fleet profit margins fall amid rising costs
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The American Transportation Research Institute’s (ATRI) 2025 report confirms what many fleet owners already feel daily: operational costs across the trucking sector continue to break records. Despite a slight decline in fuel expenses, the industry faces unprecedented non-fuel cost increases that have pushed average fleet profit margins into negative territory for some sectors. The study shows that carriers are adopting tough measures to remain solvent as costs climb and rates soften.
Rising non-fuel operational costs reshape fleet budgets
While fuel prices dipped in 2024, non-fuel expenses climbed sharply, setting new records. Truck and trailer payments increased by 8.3 percent to $0.390 per mile, adding significant strain to fleet budgets. Driver benefits rose nearly five percent to $0.197 per mile, and insurance premiums also continued an upward trend.
With fuel excluded, average marginal costs reached $1.779 per mile, marking the highest non-fuel operational cost ATRI has ever recorded. These increases continue to tighten margins for fleets that are already grappling with soft freight rates.
Profitability metrics reveal the full impact of these rising expenses. According to ATRI’s findings, only the less-than-truckload (LTL) sector maintained a slim positive average margin in 2024. Other segments were hit harder: the truckload sector reported an average operating margin of negative 2.3 percent, underscoring how unsustainable costs have become. For many smaller fleets, razor-thin profits have turned to losses, threatening financial stability across the market.
Carriers adjust operations to offset rising costs
Fleets are not standing still in the face of this financial squeeze. Many have reduced truck capacity, with industry data showing a 2.2 percent drop as some carriers sold or parked equipment to cut costs. The average number of drivers per truck fell to 0.93, reflecting the same trend.
At the same time, empty miles crept up to 16.7 percent, illustrating the tough freight environment that leaves trucks running without loads more frequently. These operational adjustments highlight the difficult balance fleets must strike between managing expenses and retaining market share.
Where a fleet operates can further influence its cost burden. ATRI’s research found the Northeast remained the most expensive region for trucking, with average costs of $2.461 per mile. By contrast, the South Central region recorded the sharpest cost decline, dropping more than nine cents per mile. Such variations make cost planning and rate negotiations more complicated, especially for carriers that run nationwide lanes.
Small carriers and owner-operators feel the greatest pressure
Smaller fleets and independent owner-operators face outsized challenges in this environment. Many pay higher insurance premiums and often lack the negotiating power larger fleets use to secure better equipment financing or maintenance rates. As a result, they are more exposed to swings in fuel and repair costs, which can quickly erode any remaining profit. With driver pay and benefits rising, these businesses risk being squeezed out of the market altogether.
Looking ahead, the forecast is sobering. Early 2025 indicators suggest continued increases in insurance premiums, tolls, and equipment payments. With soft freight demand offering little pricing power, fleets will remain under pressure to find efficiencies wherever possible. For industry decision-makers, ATRI’s latest report is a clear call to tighten financial controls, review operational strategies, and prepare for another challenging year.
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