According to the American Transportation Research Institute, traffic congestion cost the U.S. trucking industry a record-high $108.8 billion in 2022. If you’re wondering, this is equivalent to 435,686 truck drivers (or 22% of all Class-A licensed drivers) being idle for a whole year. The average cost per every registered combination truck comes out to $7,588.
Interestingly, the total hours of congestion saw a slight decrease from 2021 to 2022. However, this is offset by the cost of operating a truck increasing at a greater rate. For the first time ever, those costs reached $2 per mile. As such, the overall cost of congestion in 2022 increased by 15% when compared to 2021.
Needless to say, these rising costs put extra pressure on both consumers and businesses. Addressing challenges caused by traffic congestion will require a shared commitment to modernize the trucking infrastructure. Here are some factors that contribute to congestion costs and what your trucking company can do to combat them.
Truck Speed
Average truck speed increased slightly from 2022 (52.41 mph) to 2021 (51.95 mph). Only six states recorded slower average truck speeds in 2022 than in 2021: Kentucky, Michigan, North Dakota, New Hampshire, Nebraska, and Indiana. Kentucky was the only state where the average speeds slowed by more than 1%.
As a result of fluctuations in truck speeds and volume, the total hours of congestion dropped by 5.4% year-over-year. In 2021, total congestion time was 1.27 billion hours; in 2022, it dropped to 1.20 billion hours. To save more time, trucking companies should try to combat traffic by planning routes during off-peak hours whenever possible.
Miles Traveled
Average truck vehicle miles slightly dipped from 195,616 million in 2021 to 195,049 million in 2022. This decrease was likely driven by a softening freight market in the second half of the year. Even so, truck volumes remain far above pre-COVID levels. Trucking companies can try to reduce this number further by using real-time traffic apps to monitor road conditions.
Payment Efficiency
Another way to decrease traffic congestion costs is to maximize your payment efficiency. By integrating advanced payment technologies, you can streamline your operations and make inventory management and transaction recording easier. This will often result in quicker deliveries and, consequently, less time spent idling in traffic.
Some advanced payment technologies your trucking company may benefit from include mobile wallets, contactless payments, and NFC options. All these technologies can seamlessly integrate with your existing POS systems and improve overall customer satisfaction.
If you haven’t assessed your payment systems recently, now is the perfect time to optimize your operations. MONA Payment Solutions specializes in helping trucking companies modernize their payment infrastructure to reduce costs and improve efficiency. Contact MONA Payment Solutions today for a comprehensive evaluation of your current payment systems and discover how our cutting-edge solutions can help your business thrive in today’s challenging transportation landscape.