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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
×
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Suggested Citation:"Chapter 4 - The Trucking Industry." National Academies of Sciences, Engineering, and Medicine. 2005. Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries. Washington, DC: The National Academies Press. doi: 10.17226/13809.
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24 CHAPTER 4 THE TRUCKING INDUSTRY INTRODUCTION The Federal Motor Carrier Safety Administration (FMCSA) uses the Motor Carrier Management Information System (MCMIS) to manage data on the commercial vehicle opera- tors under its oversight. Information in MCMIS is obtained from the MCS-150 Form filed by motor carriers when apply- ing for a U.S. DOT number. The form requires companies to describe their operating and cargo classifications, as well as to identify the number and types of vehicles operated. Only companies traveling interstate or with hazardous cargo are required to register with FMCSA and are therefore captured in MCMIS. MCMIS includes intrastate carriers for selected states as well, although coverage for intrastate carriers is incomplete on a national scale. For this study, trucking com- panies were defined in MCMIS as firms operating a greater number of trucks and tractors than buses. MCMIS is the most comprehensive source for trucking industry statistics, but does not include all intrastate trucking operators. This is a key data limitation; because the number of operators and vehicles in the trucking industry is much larger than in the motorcoach or school bus contractor indus- tries, it is easier for trucking industry associations to rely on MCMIS for industry statistics rather than attempt a compre- hensive independent survey on a national scale. As a result, there is no complete information on the intrastate trucking industry nationwide. Another limitation is that detailed finan- cial and operating data for trucking companies are typically taken from the Motor Carrier Annual Report, a filing required by FMCSA for all motor carriers with revenue exceeding $3 million. Although this information is very detailed, it may not accurately represent the financial and operating profiles for small trucking operators. Although industry size and eco- nomic information for the trucking industry may not cover all intrastate trucking operators, the safety statistics do represent the entire trucking vehicle population. Vehicle manufacturers classify trucks into eight types according to their gross vehicle weight rating, as shown in Table 22. Classes I and II include trucks sold at dealerships to the general public. Classes III and higher include trucks more often used for commercial delivery and long-haul trans- portation purposes. For safety statistics, the National High- way Traffic Safety Administration defines “large trucks” as Classes III and higher (weighing more than 10,000 pounds), which is consistent with FMCSA’s definition of a commer- cial motor vehicle (49 CFR 390.5). Figure 25 shows exam- ples of trucks by vehicle manufacturer class. As shown in Table 23, the Federal Highway Administra- tion uses a different classification system, set by pavement engineers and based on axles and body type. However, since most trucking statistics are reported by weight, the vehicle manufacturer classification system is used in this report. The following sections describe the trucking industry size and segmentation, safety statistics, and economic indicators. INDUSTRY SIZE AND EXTENT Carriers by Size Data in Table 24 and Figure 26 were obtained from MCMIS. According to this database (which includes all interstate but only selected intrastate trucking firms), there are more than 612,000 trucking firms with business activities in the United States, that own over 2.6 million trucks and tractors and lease an additional 840,000. Nearly 290,000 of these firms offer for-hire service. Over one-half of the trucking operators in MCMIS that provided fleet data operate a single vehicle and, of these, about 94 percent are owner–operators. About 85 percent of all trucking firms that provided fleet data to MCMIS operate five or fewer vehicles. American Trucking Associations, Inc., (ATA) used MCMIS as of August 2002 to develop a total industry estimate of 585,677 trucking firms operating in the United States. For industry estimates by fleet size, ATA used the Motor Carrier Annual Report, which is derived from U.S. DOT filings by car- riers with at least $3 million in annual revenue. Table 25 com- pares MCMIS data for the three fleet-size categories used in the ATA study: more than 20, 7 to 20, and 6 or fewer vehicles. Both analyses show that the industry is highly fragmented, with most firms operating six or fewer vehicles. Since the Motor Carrier Annual Report only applies to carriers with greater than $3 mil- lion in annual revenue, it is likely that small carriers are not accounted for in the ATA analysis. ATA’s analysis also excludes Canadian and Mexican firms operating in the United States. These factors help explain why the ATA analysis results in fewer small trucking firms than reported in MCMIS.

25 Geographic Distribution The trucking industry also can be described based on the geographic locations of each firm, as shown in Table 26 and Figure 27, excluding 101,686 firms without geographic infor- mation. Geographic locations were established by the MCMIS carrier address, and may or may not reflect the actual operat- ing region of the company. In addition, MCMIS does not include all intrastate firms. Census Bureau regions were used to define geographic areas as follows: • West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming; • Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin; • South: Alabama, Arkansas, Delaware, District of Colum- bia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia; Medium Duty (Class III–VI) Truck Heavy Duty (Class VII or VIII) Truck Heavy Duty (Class VII or VIII) Truck Figure 25. Vehicle manufacturer truck classifications. Truck Type Gross Vehicle Weight Rating (Pounds) Category Class I 0-6,000 Light Duty Class II 6,001-10,000 Light Duty Class III 10,001-14,000 Medium Duty Class IV 14,001-16,000 Medium Duty Class V 16,001-19,500 Medium Duty Class VI 19,501-26,000 Medium Duty Class VII 26,001-33,000 Heavy Duty Class VIII 33,001-150,000 Heavy Duty Source: Wisconsin Department of Transportation, http://hotmix.ce.washington.edu/wsdot_web/. TABLE 22 Vehicle manufacturer truck classifications Class Type 1 Motorcycles 2 Passenger Cars 3 Other Two-Axle, Four-Tire, Single-Unit Vehicles 4 Buses 5 Two-Axle, Six-Tire, Single-Unit Trucks 6 Three-Axle, Single-Unit Trucks 7 Four-or-More-Axle, Single-Unit Trucks 8 Four-or-Less-Axle, Single-Trailer Trucks 9 Five-Axle, Single-Trailer Trucks 10 Six-or-More-Axle, Single-Trailer Trucks 11 Five-or-Less-Axle, Multi-Trailer Trucks 12 Six-Axle, Multi-Trailer Trucks 13 Seven-or-More-Axle, Multi-Trailer Trucks Source: Wisconsin Department of Transportation, http://hotmix.ce.washington.edu/wsdot_web/. TABLE 23 Federal Highway Administration vehicle classifications

26 • Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont; • Canada; • Mexico; and • Other: Puerto Rico, U.S. territories (including the U.S. Virgin Islands and the Northern Marinara Islands). Carriers by Segment Table 27 describes the trucking industry by segment and fleet size, including the 101,686 carriers with no fleet size information. The industry segments shown are used by FMCSA as regulatory classifications. Private trucking firms use trucks in their business activities and do not offer services to the general public. For-hire trucking firms offer transportation services for compensation. Government trucking firms carry cargo for local, state, or federal governments, including the U.S. Postal Service. A single firm can be classified in multi- ple segments. For example, a firm could offer general for-hire services as well as government trucking services. Data in these tables and figures cover all interstate firms and selected intra- state firms. Within for-hire interstate carriers, firms can be classified by type of freight hauled. According to the Federal Highway Administration’s Quick Response Freight Manual, truckload carriers operate either with loads in excess of 10,000 pounds (per load) or with a load that allows no other load to be carried. Less-than-truckload carriers operate with loads less than 10,000 pounds (per load) and with a load that allows other loads to be carried, excluding package carriers. Truckload carriers can further be classified into general truckload carriers and specialized truckload carriers. Types of specialized carriers include tank, refrigerated, and household goods carriers. Figure 28 shows the distribution of carriers by type of load within the for-hire segment of the trucking industry. To develop these statistics, ATA used reports based on U.S. Department of Transportation filings by carriers with at least $3 million in annual revenue, excluding household goods carriers. As a result, the figure only applies to large, for-hire trucking operators and may not accurately represent the for- hire segment profiles of small trucking operators that com- Number of Firms Number of Trucks/Tractors Owned Number of Trucks/Tractors Owned/Operated Fleet Size All For-Hire All For-Hire All For-Hire 1,000+ 208 124 591,618 413,702 758,056 537,154 500-999 300 190 137,484 78,443 206,455 128,928 100-499 2,843 1,743 358,249 188,572 556,610 339,736 50-99 4,089 2,460 187,679 101,878 279,206 167,638 25-49 8,789 5,087 207,100 107,743 296,956 170,981 10-24 28,807 14,578 318,718 152,837 421,257 213,955 6-9 32,746 14,220 190,714 80,798 233,626 100,870 2-5 172,004 67,786 428,684 168,817 492,491 193,548 1 261,299 125,635 245,284 120,317 261,297 125,468 Subtotal (firms with fleet data) 511,085 231,825 2,665,530 1,413,107 3,505,954 1,978,278 Unknown fleet size 101,686 57,825 Unknown Unknown Unknown Unknown Total 612,771 289,650 2,665,530+ 1,413,107+ 3,505,954+ 1,978,278+ Note: This table excludes 595 firms with equal-sized bus and trucking operations. Source: Federal Motor Carrier Safety Administration Motor Carrier Management and Information System, 2000. 50+ 25-49 10-24 6-9 2-5 1 6% 6% 1% 2% 34% 51% Note: A total of 511,085 firms is represented. This chart excludes 595 firms with equal-sized bus and trucking operations and 101,686 firms with unknown information. Source: FMCSA MCMIS, 2000. Fleet Size More than 20 7 to 20 6 or fewer Total firms ATA 2002 7.2% 11.7% 81.1% 585,677 MCMIS 2000 3.8% 9.0% 87.1% 612,771 Note: The MCMIS total excludes 595 firms with equal-sized bus and trucking operations. Source: American Trucking Associations, Inc. American Trucking Trends 2003; FMCSA MCMIS, 2000. TABLE 24 Number of trucking firms, trucks/tractors owned, and trucks/tractors owned/operated by fleet size, 2000 Figure 26. Percentage of trucking firms by fleet size owned/operated, 2000. TABLE 25 Comparison of ATA (2002) and MCMIS (2000) data

27 pose most of the industry. The “other” category includes other specialized carriers such as heavy equipment carriers and building materials carriers. SAFETY This section presents fatality, injury, and crash statistics for crashes involving large trucks. Although statistics derived from the MCMIS database do not provide complete cover- age for significant numbers of intrastate motor carriers, the statistics from NHTSA’s Fatality Analysis Reporting Sys- tem (FARS) are regarded as true population totals (interstate and intrastate) and statistics from the National Automotive Sampling System’s General Estimates System (GES), which reports crashes, are estimated for the entire vehicle popula- tion based on a representative national sample. Table 28 shows that fatalities and injuries have remained roughly constant over the past decade, while the number of crashes and vehicle-miles traveled, have increased. As a result, the fatality rate, the injury rate, and the crash rate per 100 mil- lion vehicle-miles traveled (VMT) have all declined, as shown in Figures 29, 30, and 31, respectively. ECONOMY AND FINANCES This section presents economic and financial information on the trucking industry, including sources of revenues, fac- tors affecting profitability, driver compensation, operating expenses, operating cost per mile, trends in truck sales and registrations, trends in revenue, trends in intercity ton-miles, trends in business failures, and distribution of revenue within the industry. Expenses and Revenues Table 29 shows the 20 largest trucking operators in terms of revenue in 2001, based on data from the Bureau of Trans- portation Statistics. Dividing operating expenses by operat- ing revenues shows the operating ratio. The higher the ratio, expressed in percentages, the smaller the trucking operator’s Number of Trucking Firms Region All For Hire West 70,471 41,414 Midwest 147,687 61,358 South 177,734 81,735 Northeast 97,450 35,385 Canada 13,904 8,960 Mexico 3,476 2,822 Other 363 151 Note: This table excludes 595 firms with equal-sized bus and trucking operations and 101,686 firms with unknown geographic information. Source: FCMSA MCMIS, 2000. TABLE 26 Trucking firms by geographic region, 2000 Mexico – 0.68% Other – 0.07% Canada – 3% Northeast – 19% South – 35% Midwest – 29% West – 14% Note: A total of 511,085 firms is represented. This chart excludes 595 firms with equal-sized bus and trucking operations and 101,686 firms with unknown geographic information. Source: FMCSA MCMIS, 2000. Figure 27. Distribution of trucking firms by geographic region, 2000. Fleet Size Private For Hire Government Other Unknown 26,626 57,825 676 1,317 1000+ 96 124 3 1 500-999 113 190 1 8 100-499 1,194 1,743 32 51 50-99 1,752 2,460 45 68 25-49 3,983 5,087 73 152 10-24 15,132 14,578 265 529 6-9 19,579 14,220 247 579 2-5 108,797 67,786 1,791 3,215 1 140,088 125,637 2,915 6,934 Total 317,371 289,650 6,048 12,854 Percentage of firms offering service 52% 47% 1% 2% Note: This table excludes 595 firms with equal-sized bus and trucking operations. Totals in this table do not sum to industry counts since carriers can be classified in multiple categories. Source: FCMSA MCMIS, 2000. TABLE 27 Trucking firms by segment and fleet size, 2000

Year Fatalities Occupant Fatalities Injuries Crashes Vehicle-Miles Traveled 1991 4,821 661 110,000 330,347 1992 4,462 585 139,000 376,035 1993 4,856 605 133,000 397,328 1994 5,144 670 133,000 460,644 1995 4,918 648 117,000 377,472 1996 5,142 621 130,000 393,755 1997 5,398 723 131,000 437,917 1998 5,395 742 127,000 411,955 1999 5,380 759 142,000 474,920 2000 5,282 754 140,000 456,995 2001 5,111 708 131,000 429,823 2002 4,897 684 130,000 434,542 149,543,000 153,384,000 159,888,000 170,216,000 178,156,000 182,971,000 191,477,000 196,380,000 202,688,000 205,520,000 209,032,000 214,530,000 Source: NHTSA, Traffic Safety Facts 2002. TABLE 28 Fatalities, injuries, and crashes in large truck-involved crashes, 1991 to 2002 28 Truckload – 43.6% Less-Than-Truckload – 9.7% Refrigerated – 7.3% Household Goods – 3.7% Bulk – 3.9% Other – 26.7% Tank – 5.2% Note: Derived from reports filed with the U.S. Department of Transportation by carriers with $3 million or more in annual revenue. Source: American Trucking Associations, Inc., American Trucking Trends 2003. Figure 28. Distribution of for-hire interstate carriers, 2000. Source: NHTSA, Traffic Safety Facts 2002. Year Fatalities (Indexed to 1991) 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Fatalities Fatalities per 100 million VMT Occupant Fatalities Occupant Fatalities per 100 million VMT Figure 29. Fatality Index and Fatality Rate Index for large truck-involved crashes, 1991 to 2002.

29 profit margin. In 2001, United Parcel Service, Inc., had the greatest operating revenue of any motor carrier of property, $20.3 billion, while its operating ratio was 95 percent (i.e., UPS’s operating expenses were equal to 95 percent of its oper- ating revenues). Roadway Express, Inc., was second, with $2.7 billion in operating revenues and an operating margin of 97 percent. Combined, the top 20 carriers had operating rev- enues of $45.3 billion and operating expenses of $41.6 bil- lion, for an operating ratio of 92 percent. Sources of Revenues Figure 32 shows the sources of revenue for the for-hire trucking industry. General truckload and less-than-truckload (LTL) freight account for over 75 percent of revenues. The figure applies only to for-hire trucking firms with over $3 mil- lion in annual revenue and may not accurately represent the for-hire sources of revenue for small trucking operators. Factors Affecting Profitability ATA cites the following factors as affecting the profitabil- ity and productivity of the trucking industry: • Rising equipment rental costs; • Rising insurance costs; • National driver shortages; • Rising fuel costs; and Source: NHTSA, Traffic Safety Facts 2002. 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Injuries (Indexed to 1991) Injuries Injuries per 100 million VMT 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 Figure 30. Injury Index and Injury Rate for large truck-involved crashes, 1991 to 2002. Source: NHTSA, Traffic Safety Facts 2002. 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 Crashes (Indexed to 1991) Crashes Crashes per 100 million VMT 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Figure 31. Crash Index and Crash Rate Index for large truck-involved crashes, 1991 to 2002.

30 • Government regulations, including hours-of-service changes. Driver Qualifications for Employment The basic qualifications for employment as a truck driver are as follows: • Obtain a Commercial Driver’s License if operating a vehicle with a gross vehicle weight rating (GVWR) of 26,001 pounds or more or of any size transporting haz- ardous material; • Pass a physical examination every two years (if engaged in interstate commerce); • Be 21 years of age (if engaged in interstate commerce); • Submit to random drug and alcohol testing; • Have no criminal record involving drunk driving, drug use, or hit-and-run driving; • Speak English well enough to read road signs; and • Pass an FMCSA written exam. Driver Compensation The Bureau of Labor Statistics’ Occupational Outlook Handbook, 2004-2005 Edition reports a median truck driver Rank Company Operating Revenues ($) Operating Expenses ($) Operating Ratio 1 United Parcel Service, Inc. 20,273,055,000 19,308,181,000 95% 2 Roadway Express, Inc. 2,671,186,000 2,585,392,000 97% 3 Yellow Transportation Inc. 2,522,297,000 2,419,462,000 96% 4 J. B. Hunt Transport, Inc. 2,247,886,000 2,028,095,000 90% 5 Swift Transportation Company, Inc. 2,101,472,000 1,318,392,000 63% 6 Con-Way Transportation Svc, Inc. 1,935,212,000 1,725,953,000 89% 7 Ryder Integrated Logistics, Inc. 1,553,529,000 1,567,751,000 101% 8 Werner Enterprises, Inc. 1,341,456,000 1,191,190,000 89% 9 Overnite Transportation Company 1,332,520,000 1,202,966,000 90% 10 ABF Freight System, Inc. 1,255,827,000 1,182,635,000 94% 11 United Van Lines, LLC 1,113,826,000 796,652,000 72% 12 New Bern Transport Corp. 1,044,779,000 929,526,000 89% 13 USF Holland, Inc. 960,392,000 862,150,000 90% 14 Estes Express Lines 796,479,000 627,659,000 79% 15 Watkins Motor Lines, Inc. 793,090,000 745,564,000 94% 16 U.S. Xpress, Inc. 762,939,000 723,767,000 95% 17 Landstar Ranger, Inc. 713,337,000 617,634,000 87% 18 Penske Logistics, LLC 672,558,000 616,143,000 92% 19 North American Van Lines, Inc. 581,881,000 645,001,000 111% 20 Averitt Express, Inc. 581,854,000 526,025,000 90% Total 45,255,575,000 41,620,138,000 92% Note: Includes intercity regular route carriers, defined as carriers whose revenue from intercity regular routes exceeds revenue from all other types (local, commuter, charter) combined. Source: Bureau of Transportation Statistics, Motor Carrier Financial and Operating Statistics. TABLE 29 Top 20 trucking operators by operating revenue, 2001 Household Goods – 5% Tank – 2% General Truckload – 46% General Less-Than-Truckload – 30% Other – 11% Bulk – 2% Refrigerated – 4% Note: Derived from reports filed with the U.S. Department of Transportation by carriers with $3 million or more in annual revenue. Source: American Trucking Associations, Inc., American Trucking Trends 2003. Figure 32. For-hire trucking industry sources of revenues, 2001.

31 hourly wage of $15.97 for long-haul trucks heavier than 26,000 pounds, and a median truck driver hourly wage of $11.48 for local and regional trucks equal to or lighter than 26,000 pounds. Generally, local drivers are paid hourly with overtime and long-distance drivers are paid by the mile. On a per-mile basis, ATA estimated driver wages in 2001 at $0.39 per mile. Driver Work Schedules Truck drivers may work up to 70 hours per week, and up to 14 or 15 hours per day. They drive 10 or 11 hours per day. Their daily schedule fluctuates and is dictated by delivery times, pick-up times, unscheduled delays, team driving, etc. Local drivers may start early in the morning or late at night to avoid traffic. Quality of rest for local drivers is consistent, since it is almost always obtained at home. Quality of rest for long-distance truckers is variable, since it is obtained mostly in sleeper berths at rest stops, roadside, or while the vehicle is in motion (team driving). Long-distance drivers may work in pairs on “sleeper” runs that last for days or weeks. Driver Duties The duties of a truck driver typically include, but are not limited to, the following: • Inspect the truck before leaving the warehouse or terminal; • Make sure cargo is secure; • Be alert when driving in order to prevent crashes; • Load and unload cargo as required; • Take orders, collect payments, sell goods, solicit new orders, or perform other customer service duties as required; and • After delivery, complete a report detailing the trip. Driver Regulations Truck drivers are subject to a number of FMCSA regula- tions, which include but are not limited to the following: • Hours-of-service (HOS) regulations—New HOS reg- ulations (in effect January 2004) apply to employees of private operators, but not government operators. The new regulations stipulate that a driver may not drive: – More than 11 hours, following 10 hours off duty; – Beyond the 14th hour after coming on duty, fol- lowing 10 hours off duty; and – After 60/70 hours on duty in 7/9 consecutive days. • Medical standards and physical qualifications—Apply only to employees of private companies, not employees of government-owned operations. • Drug and alcohol testing—Applies to all drivers of vehi- cles with a GVWR of 26,001 pounds or more or drivers of any size vehicle transporting hazardous material. • Commercial Driver’s Licenses—Are required of all drivers of vehicles with a GVWR of 26,001 pounds or more or drivers of any size vehicle transporting hazardous material. Operating Expenses Figure 33 shows the distribution of operating expenses for trucking firms in 2001. American Trucking Associations, Inc., used data from the Motor Annual Carrier Report, which are based on information filed for carriers making at least $3 million in annual revenue, excluding household goods car- riers. As a result, the distribution of operating expenses may not be representative of small trucking companies that com- pose most of the industry. Salaries/Benefits – 41% Equipment – 27% Operating Supplies and Expenses – 14% Miscellaneous – 8% Depreciation and Amortization – 5% Insurance – 3% Taxes and Licenses – 2% Note: Derived from reports filed with the U.S. Department of Transportation by carriers with $3 million or more in annual revenue. Source: American Trucking Associations, Inc., American Trucking Trends 2003. Figure 33. Distribution of operating expenses for large trucking firms, 2001.

32 Operating Cost per Mile Table 30 shows the operating cost per mile for trucking firms in 2001. American Trucking Associations, Inc., used data from the Motor Carrier Annual Carrier Report, which are based on information filed by carriers making at least $3 million in annual revenue, excluding household goods carriers. As a result, the operating cost per mile may not be representative of small trucking companies that compose most of the industry. Truck Sales Table 31 and Figure 34 show retail sales of large trucks since 1992 for both interstate and intrastate use. Sales peaked in 1999 at nearly 644,000 and have declined every year since. In 2002, a total of about 402,000 large trucks were sold in the United States. New trucks are generally retailed at approxi- mately $100,000 to $150,000. However, there is a very active used-truck market where trucks are sold for a much wider price range. Truck Registrations Table 32 and Figure 35 show the estimated truck registra- tions for 1999 to 2001, for both interstate and intrastate use. The American Trucking Associations used the Federal Highway Administration’s 2001 Highway Statistics and the 1997 Vehi- cle Inventory and Use Survey (VIUS). Although large truck Cost Element Cost per Mile Equipment Rents and Purchased Transportation $0.56 Driver Wages $0.39 Other Wages and Benefits $0.47 Fuel $0.17 Depreciation $0.10 Insurance $0.06 Outside Maintenance $0.06 Taxes and Licenses $0.03 Tires $0.02 Miscellaneous $0.21 Total $2.07 Source: American Trucking Associations, Inc., American Trucking Trends 2003. TABLE 30 Operating cost per mile for large trucking firms, 2001 Year Class III Class IV Class V Class VI Class VII Class VIII Total 1992 25,500 25,600 3,600 27,700 73,200 119,100 274,700 1993 26,900 33,300 4,300 26,600 80,800 157,900 329,800 1994 35,300 44,500 4,100 20,300 98,200 185,700 388,100 1995 39,900 52,600 4,300 23,300 106,700 201,300 428,100 1996 51,800 58,700 7,300 19,400 103,500 170,100 410,800 1997 52,800 56,500 9,200 18,100 110,700 178,600 425,900 1998 102,500 43,400 25,200 31,600 114,700 209,500 526,900 1999 122,400 49,400 30,400 48,100 131,000 262,300 643,600 2000 116,300 47,400 29,100 51,200 122,600 211,500 578,100 2001 101,500 52,000 24,400 42,400 91,600 139,600 451,500 2002 80,000 37,800 24,000 45,100 69,300 146,000 402,200 Source: American Trucking Associations, Inc., American Trucking Trends 2003. TABLE 31 Large truck retail sales by class, 1992 to 2002 Source: American Trucking Associations, Inc., American Trucking Trends 2003. 0 100 200 300 400 500 600 700 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Sales (in Thousands) Figure 34. Total large truck retail sales (Classes III through VIII), 1992 to 2002.

33 retail sales fell during this same period, the total number of reg- istrations increased by approximately 11 percent, from 22.8 million to 25.4 million. Commercial trucks exclude vehicles that are used for personal transportation, as defined by VIUS. Trends in Revenue Table 33 and Figure 36 show the revenue growth of the for-hire trucking industry since 1991. ATA used data from the Motor Carrier Annual Report, a U.S. DOT filing for car- riers making at least $3 million in annual revenue, excluding household goods carriers. Between 1991 and 2001, revenue for the industry (adjusted for inflation) grew from $66 billion to $75 billion, an increase of 12.6 percent. The number of car- riers in the sample increased by 66 percent during this period as well. These numbers also do not include carriers making less than $3 million in annual revenue. Trends in Domestic Intercity Ton-Miles Table 34 and Figure 37 show trends in domestic intercity trucking ton-miles since 1992. After steady growth during the 1990s, trucking ton-miles began to decline in 2000. (Millions) Year Commercial Trucks Truck-Tractors Total 1999 21.268 1.531 22.799 2000 22.306 1.588 23.894 2001 23.755 1.644 25.399 Source: American Trucking Associations, Inc., American Trucking Trends 2003. Source: American Trucking Associations, Inc., American Trucking Trends 2003. 10 15 20 25 30 0 5 1999 2000 2001 Year Registrations (Millions) Truck-Tractors Commercial Trucks TABLE 32 Estimated truck registrations, 1999 to 2001 Figure 35. Estimated truck registrations in millions, 1999 to 2001. ($ Millions, 2001) Year Number of Carriers Revenue Average Revenue per Carrier 1991 1,472 6,637 45.09 1992 1,479 6,958 47.05 1993 1,380 7,062 51.17 1994 1,495 7,027 47.00 1995 1,625 6,839 42.08 1996 1,862 6,525 35.04 1997 1,597 5,937 37.17 1998 1,560 5,643 36.18 1999 1,432 6,075 42.43 2000 2,315 6,475 27.97 2001 2,444 7,475 30.59 Source: American Trucking Associations, Inc., American Trucking Trends 2003. TABLE 33 Operating revenue for for-hire trucking firms with over $3 million annual revenue, 1991 to 2001

34 Trends in Business Failures As shown in Table 35 and Figure 38, the number of truck- ing business failures varies each year. Between 1999 and 2001, annual failures more than tripled, rising from 1,200 to nearly 4,000 during the shallow economic recession, but since then have roughly returned to the 1992 level. Distribution of Revenue within Industry According to Euromonitor International, a global market analysis and research firm, the five largest trucking operators in the United States accounted for 9.8 percent of the total market value in 2002, up from 9.5 percent in 2001. -15% -10% -5% 0% 5% 10% 15% 20% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Year Percent Change in Revenue from Previous Year Source: American Trucking Associations, Inc., American Trucking Trends 2003. Year Ton-Miles (Billions) 1992 815 1993 861 1994 908 1995 921 1996 972 1997 996 1998 1,027 1999 1,093 2000 1,074 2001 1,051 Source: American Trucking Associations, Inc., American Trucking Trends 2003. Figure 36. Percentage change from previous year in operating revenue for for-hire trucking firms with over $3 million annual revenue, 1991 to 2001. TABLE 34 Domestic intercity trucking ton-miles, 1992 to 2001 0 200 400 600 800 1,000 1,200 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Year Ton-Miles (Billions) Source: American Trucking Associations, Inc., American Trucking Trends 2003. Figure 37. Domestic intercity trucking ton-miles, 1991 to 2001.

35 SOURCES AND METHODS Federal Motor Carrier Safety Administration, Motor Carrier Management Information System, 2000. FMCSA operates and maintains the Motor Carrier Management Information System (MCMIS). The MCMIS Census File contains information on interstate commercial motor carriers and intrastate hazardous material carriers that are subject to the Federal Motor Carrier Safety Regulations and the Hazardous Materials Regulations. Intrastate nonhazardous material carriers are not captured for all states, but American Trucking Associations, Inc., estimates that the number of intrastate motor carriers is roughly equal to the number of interstate motor carriers. The database is available online at: http://transtats.bts.gov/DatabaseInfo.asp? DB_ID=190&DB_URL=Agency_ID=11&Agency_Desc= FMCSA&Subject_ID2=0. American Trucking Associations, Inc., American Trucking Trends 2003. This yearly publication includes comprehen- sive statistics on the trucking industry, including industry size, performance, fleet demographics, retail sales, taxes, safety, international trade, the environment, fuel price trends, and commercial truck configurations. It can be purchased from ATA at: www.truckline.com. Bureau of Labor Statistics, Occupational Outlook Hand- book, 2004–2005 Edition. The Occupational Outlook Hand- book describes the nature of the work, working conditions, training and education needed, earnings, and expected job prospects for a wide range of occupations. Detailed estimates for each of the states and metropolitan areas are available by specific industry through the occupational employment statis- tics. BLS statistics by occupation are available at: www.bls. gov/bls/occupation.htm. U.S. Department of Transportation, Bureau of Transporta- tion Statistics, Motor Carrier Financial and Operating Statis- tics Products and Reports. These annual and quarterly reports present revenues, expenses, and income for the top 100 motor carriers of property. U.S. Department of Transportation, National Highway Traf- fic Safety Administration, Traffic Safety Facts series. This is an annual publication of comprehensive national safety sta- tistics. The reports draw from NHTSA’s two primary data systems: the Fatality Analysis Reporting System (FARS), which began operation in 1975, and the National Automotive Sampling System’s General Estimates System (GES), which began operation in 1988. FARS is a census of all fatal traffic crashes involving motor vehicles on public roadways in all 50 states, the District of Columbia, and Puerto Rico. GES contains a nationally representative probability sample of all police-reported crashes. This sample is used to estimate national statistics for nonfatal crashes. The Traffic Safety Facts series is available online at: www-nrd.nhtsa.dot.gov/ departments/nrd-30/ncsa/AvailInf.html#. Euromonitor International, a global market analysis and research firm, publishes industry market reports, reference books, and offers online databases on a variety of industries in more than 70 countries. Its full report on trucking in the United States can be purchased at: www.euromonitor.com/ Trucking_in_USA_(mmp). Year Failures 1992 2,259 1993 1,672 1994 1,267 1995 1,440 1996 1,993 1997 2,699 1998 1,439 1999 1,200 2000 3,670 2001 3,990 2002 2,374 Source: American Trucking Associations, Inc., American Trucking Trends 2003. TABLE 35 Trucking business failures by year, 1992 to 2002 0 1,000 2,000 3,000 4,000 5,000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Failures Source: American Trucking Associations, Inc., American Trucking Trends 2003. Figure 38. Trucking business failures, 1992 to 2002.

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TRB’s Commercial Truck and Bus Safety Synthesis Program (CTBSSP) Synthesis 6: Operational Differences and Similarities Among the Motorcoach, School Bus, and Trucking Industries is designed as a single resource for information on profiles, safety statistics, and general business operations for these three commercial vehicle industries.

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