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Trucking Industry Congestion Costs Soar to $94.6 Billion

The trucking industry faced record congestion-related challenges in 2021, with costs reaching a staggering $94.6 billion according to new research from the American Transportation Research Institute (ATRI). This significant increase in congestion costs highlights the growing challenges fleet operators face in maintaining efficient operations.


Key Findings

This study revealed several concerning trends for the transportation industry:


  • Record-Breaking Delays: Trucking companies experienced 1.27 billion hours of delay—equivalent to 460,000 drivers sitting idle for an entire year

  • Substantial Fuel Waste: Over 6.7 billion gallons of diesel fuel were wasted due to congestion, resulting in $22.3 billion in additional fuel costs

  • Rising Costs Outpace Inflation: From 2016 to 2021, congestion costs increased by 27%, more than double the Consumer Price Index increase of 12.9% during the same period


What's Driving the Increase?

Several factors contributed to the surge in congestion costs following the pandemic:


  1. Economic Growth: 2021 saw the highest GDP growth (5.7%) since 1984

  2. Return to Office: The resumption of commuter traffic as workers returned to the office

  3. Increased Freight Demand: Higher consumer spending led to increased trucking volumes


Regional Impact

The impact of congestion varies significantly by location, with certain states and metropolitan areas bearing the brunt of these costs:


Top 5 Most Impacted States:


  1. California: $9.0 billion

  2. Texas: $7.3 billion

  3. Florida: $7.2 billion

  4. New York: $4.9 billion

  5. Louisiana: $4.2 billion


Most Affected Metropolitan Areas:


  1. New York City Metro: $5.5 billion

  2. Miami Metro: $2.6 billion

  3. Chicago Metro: $2.6 billion

  4. Philadelphia Metro: $2.1 billion

  5. Los Angeles Metro: $1.8 billion


Environmental Impact

The environmental consequences of these delays are substantial:


  • 69 million metric tons of CO2 emissions from wasted fuel

  • This environmental impact underscores the need for both operational efficiency and sustainability initiatives


Looking Forward

The federal Infrastructure Investment and Jobs Act of 2021 includes $350 billion for highway investments that could help alleviate these congestion issues. This investment presents an opportunity for strategic infrastructure improvements that could benefit the trucking industry and broader supply chain.


Risk Management Implications

For fleet operators, these findings emphasize the importance of:


  • Route optimization and planning

  • Fuel management strategies

  • Operating cost control measures

  • Environmental impact consideration

  • Strategic scheduling to avoid peak congestion periods


Understanding and adapting to these congestion patterns is crucial for maintaining competitive operations in today's challenging transportation environment. Fleet operators should consider these factors in their risk management and operational planning strategies.


 

For more information about managing your fleet's risks and costs in today's challenging environment, contact your Cottingham & Butler representative.

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