In 2021, congestion cost the trucking industry a staggering $94.6 billion, marking a significant increase from previous years, as revealed in a new study by the American Transportation Research Institute (ATRI). The study, the first update since 2018, highlighted the detrimental impact of both recurring and incident-related congestion on operational costs, including driver compensation, fuel, and maintenance. ATRI’s analysis, based on the cost-per-hour to operate a truck, average highway speeds, and recent truck volume data, demonstrated a 22.4% rise in congestion costs compared to 2020 and a 27% increase from the 2016 baseline. Notably, this increase was more than twice the rate of inflation, as measured by the Consumer Price Index (CPI), which rose by 12.9% during the same period.
Contributing factors to this record-high congestion cost included a spike in diesel prices between 2020 and 2021, alongside increased trucking rates and volumes. The most populous states—California, Texas, Florida, and New York—experienced the highest congestion costs, ranging from $4.9 billion in New York to $9 billion in California in 2021. However, states like Nevada, Louisiana, and Georgia witnessed the most substantial percentage increases since 2016, with congestion costs soaring by 117.2%, 83.3%, and 81.3%, respectively. Alaska had the lowest state-wide congestion costs at $62 million, and Alaska, Wyoming, and Hawaii experienced significant percentage decreases since 2016, with reductions of 20%, 18.2%, and 9.4%, respectively.
When distributing the overall congestion cost across the country’s registered tractor-trailers, the average annual cost per truck was calculated at $6,824. This amount equates to 3% of the average annual revenue generated per truck in the truckload sector in 2021, as reported by ATRI.
ATRI plans to update this study annually, positioning it as a valuable tool for Congress to assess the urgent need for infrastructure investments. Despite the fact that federal fuel taxes have not increased since 1993 and most states have had to reduce infrastructure spending significantly, the 117th U.S. Congress passed the Infrastructure Investment and Jobs Act (IIJA). This landmark legislation allocated over $350 billion in dedicated transportation spending, leading to more than $74 billion worth of transportation projects being awarded or announced by the end of Year 2 of the five-year IIJA program. These projects are primarily focused on congestion reduction, road safety, and freight transportation priorities, aiming to address the critical challenges faced by the trucking industry.
Inspired by: https://www.freightwaves.com/news/trucking-congestion-costs-hit-record-94-6b