Why it matters
Fresh data from the American Transportation Research Institute reveals safety isn't a cost center – it's a profit potential in today's tough times for trucking
The big picture
ATRI's annual Operational Costs of Trucking provides key data and benchmarks for companies. Much of the story is known – tough year for trucking revenue. Truckload carriers are averaging a loss of $0.090/mile
But the data reveals an opportunity to bolster the bottom line by increasing safety and decreasing risk.
By the numbers:
- Insurance premiums hit a record $0.102 per mile in 2024
- Combined with deductibles, total risk costs reached $0.133 per mile
- Out-of-pocket safety expenses averaged $0.031 per mile
For perspective: The $0.031/mile average out-of-pocket expense might seem small, but for a carrier running 100,000 miles annually, that's $3,100 in direct losses per truck.
The insurance squeeze continues
- What's happening: Insurance costs keep climbing despite hopes for relief.
- 2024: 3% premium increase (following 12.5% jump in 2023)
- Q1 2025: 5.8% increase – nearly double the 2024 rate
Reality check: Premiums are climbing. Companies attempt to slow their increase by increasing deductibles or retention, meaning more skin in the game.
The profit opportunity
The math is simple: Reducing out-of-pocket safety costs goes straight to profit. And that means attacking what I call the "Four Phases" – litigation, post-accident, accident response, and (most importantly) pre-accident.
For context: With truckload carriers losing $0.090/mile, even modest safety improvements could:
- Cut deductible payouts
- Reduce future premium increases
- Turn red ink to black
Between the lines
Traditional cost-cutting (fuel, tires, maintenance) requires driving fewer miles – which means less revenue. Safety improvements, however, reduce costs while maintaining or increasing revenue.
Safety's advantage: Reducing accidents and violations cuts costs without reducing revenue. Every dollar saved on safety-related expenses flows directly to profit.
Real-world impact: A carrier that cuts safety-related costs by just 50% would improve its bottom line by $0.0155 per mile.
What's next: Carriers that treat safety as a profit strategy – not compliance burden – will have a competitive edge as the industry consolidates.
The bottom line
In an industry where every penny per mile matters, the $0.031 in out-of-pocket safety costs represents more than just an expense. It's the difference between profit and loss for many carriers.
Action items for carriers:
- Audit your total cost of risk, not just insurance premiums
- Calculate the ROI on safety investments
- Track safety metrics alongside financial performance
- Consider safety technology as capital investment, not operating expense
My discussion with ATRI's Dr. Alex Leslie:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
