The Top 10 Expenses in a Trucking Company
Running a trucking company isn’t cheap — and every owner knows that it’s not the big, obvious expenses that kill profitability. It’s the slow leaks: small financial drains that stack up month after month. When you understand your true cost structure, you make better pricing decisions, negotiate smarter, and stay profitable even when rates tighten.
Here’s a breakdown of the top ten expenses that hit trucking companies the hardest, why they matter, and what smart operators do to control them.
1. Fuel
Percentage of Total Costs: 25% – 35%
Fuel is almost always the biggest expense in a trucking operation.
Why it’s high:
Idling, speeding, poor routing, old equipment, and bad tire inflation.
How strong fleets reduce it:
Fuel cards, idle tracking, speed control, good routing, and teaching drivers fuel-efficient habits.
2. Driver Wages
Percentage of Total Costs: 25% – 30%
Drivers are the heart of the business — and paying competitively matters.
What affects this cost:
Experience level, bonuses, overtime, and route type.
How fleets control it:
Clear expectations, safe equipment, paid time efficiencies, and performance-based incentives.
3. Truck & Trailer Payments
Percentage of Total Costs: 10% – 20%
Whether you lease or finance, equipment is a major investment.
Cost factors:
Age of equipment, interest rates, truck specs, and resale value.
Smart strategies:
Buy for lifecycle cost, not the lowest price. Standardize your fleet to control parts and repair costs.
4. Insurance
Percentage of Total Costs: 8% – 15%
Insurance is rising every year because of nuclear verdicts and rising claim severity.
What drives the cost:
MVRs, CAB scores, claims history, and what commodities you haul.
How to reduce it:
Dashcams, strong PM records, clean hiring practices, and CAB-based safety planning (something Nelson Insurance Agency specializes in).
5. Maintenance & Repairs
Percentage of Total Costs: 8% – 12%
Repairs are unpredictable, especially with modern emissions systems.
Top maintenance expenses:
Tires, brakes, filters, electrical systems, and aftertreatment repairs.
Ways to reduce:
Strict PM schedule, quality pre-trips, and documenting every repair.
6. Tires
Percentage of Total Costs: 2% – 4%
Tires are a steady and necessary cost, especially in high-mileage operations.
Why costs rise:
Curb strikes, underinflation, misalignment, and uneven wear.
How to save:
Inflation monitoring, proper rotations, and buying for durability, not just price.
7. Permits, Licensing & Compliance
Percentage of Total Costs: 1% – 3%
Compliance costs add up, and penalties make it worse.
Common expenses:
IFTA, IRP, UCR, 2290, ELD subscriptions, and special permits.
How to control:
Stay ahead of renewals, use compliance tools, and keep files clean.
8. Broker Fees, Load Boards & Factoring
Percentage of Total Costs: 2% – 8%
The more you rely on brokers, the more these costs climb.
Examples:
Load board subscriptions, broker margins built into rates, factoring fees (1%–5%), quick pay fees.
How to reduce:
Build direct shipper relationships and deliver consistent service.
9. Administrative & Back-Office Costs
Percentage of Total Costs: 5% – 10%
These are the costs of running the business behind the scenes.
Common expenses:
Dispatch, software, office staff, phones, internet, accounting, and safety management.
How to reduce:
Automation, outsourcing, and streamlining workflows.
10. Taxes, Towing & Unexpected Costs
Percentage of Total Costs: 2% – 4%
These are the unpredictable costs that cut into profit.
Examples:
Roadside breakdowns, towing, DOT fines, cargo claims, weather delays, and legal fees.
How to prepare:
Build cash reserves, maintain breakdown coverage, and stay on top of PM.
Summary: Average Expense Breakdown for Trucking Companies
Here’s a simplified snapshot of how every $1.00 is typically spent in a trucking operation:
|
Category
|
Average % of Total Costs
|
|---|---|
|
Fuel
|
25–35%
|
|
Driver Wages
|
25–30%
|
|
Equipment Payments
|
10–20%
|
|
Insurance
|
8–15%
|
|
Maintenance & Repairs
|
8–12%
|
|
Tires
|
2–4%
|
|
Compliance Costs
|
1–3%
|
|
Broker/Factoring Fees
|
2–8%
|
|
Administrative Costs
|
5–10%
|
|
Unexpected Costs
|
2–4%
|
Final Thoughts
Controlling these ten expense categories is how trucking companies stay profitable in any market. When you understand your true cost structure, you can price loads with confidence, negotiate better rates, and protect your margins even when the industry tightens. The most successful fleets aren’t the ones that work the hardest — they’re the ones that understand their numbers, build disciplined processes, and eliminate the small leaks that drain cash over time.
And here’s the reality: insurance, maintenance, and safety scores are all interconnected. A few violations on your CAB report increase your insurance costs. A weak maintenance program increases downtime and fuel usage. Poor driver practices increase claim severity. Everything touches everything else.
That’s why the companies that win are the ones that treat their business like a system — not a collection of unrelated tasks.
