Transport and logistics are critical marketing components. Without them, businesses can’t deliver valuable goods that solve people’s problems. However, transportation activities are costly. Therefore, every business needs the most cost-effective way of transporting goods or receiving supplies.
Truckload carriers are some of the best transportation alternatives Toronto businesses should utilize. But how much do truckload carriers in Toronto charge per mile? According to a Yahoo report, the average cost of truckload carrying per mile ranges between $1.22 and $3.05.
Average operating expenses for a carrier on a per-mile basis
|Expense Category||Low Range||High Range|
|Driver Wages||$0.48 per Mile||$0.83 per Mile|
|Fuel||$0.40 per Mile||$0.55 per Mile|
|Equipment Financing||$0.00 per Mile||$0.40 per Mile|
|Maintenance||$0.09 per Mile||$0.40 per Mile|
|Insurance||$0.06 per Mile||$0.18 per Mile|
|Variable Driving Costs||$0.01 per Mile||$0.09 per Mile|
|Non-Driver Compensation||$0.06 per Mile||$0.30 per Mile|
|Fixed Overheads||$0.06 per Mile||$0.30 per Mile|
Our post examines this topic at a length. Here, we will define truckload carrying, its benefits, and how to choose the best truckload carrier in Toronto. Remain on this page to learn and benefit more.
What is Truckload Carrying?
Full truckload shipping is the use of a fully loaded truck to ship goods. Here, distributors hire entire trucks for their shipments from carriers to deliver their goods. This model differs from less-than-truckload (LTL) where carriers mix goods from different customers and transport them together in one truck.
Full truckload shipping is ideal when distributors’ goods are heavy or large. It may also apply when distributors have enough goods to fill a whole truck.
Factors Determining Truckload Carrier Cost
So, what factors influence the cost of hiring a whole truck to ferry your goods? This section examines the leading factors.
Drivers’ wages significantly determine the overall truckload rates per mile because they’re some of the largest expenses trucking companies incur. These wages range between $0.49 and $0.83, averaging $0.67 per mile. These wages cover these components:
- Basic wages
- Per diem
- Accessorial payments
- Workers’ compensation
- Health insurance cover
- Retirement benefits
Fuel is the second-largest operating cost carriers incur, whether they’re companies or owner-operators. A truck carrier’s net fuel cost includes the gross amount of fuel receipts that also include taxes and other additives. However, this net cost excludes surcharges incurred during a given period.
All truckers need trucks to operate. Maintaining trucks prolongs their average age, reducing a carriers’ overall truck financing expenses. A company charges more for its services if it spends more money paying for its trucking equipment.
Your overall truckload cost per mile also covers maintenance costs. Carriers’ maintenance cost includes parts, tires, lubes, oil, labor, and fixed overheads like tools and shop rent. Averagely, you will pay between $0.09 and $0.40 per mile.
Insurance is another cost you incur when hiring a truckload carrier in Toronto and its environs. Mostly, this cost covers the entire liability cost, physical damage, cargo insurance premiums, and the cost of other accident-related damage.
Recently, insurance costs for carriers have been skyrocketing. However, smart carriers can reduce this cost by investing in technologies and practices that reduce accident probabilities. Some of these technologies and practices include in-cab event recorders, advanced entry-level driver operation, and collision mitigation technology.
Miscellaneous Driving Costs
Your truckload bill per mile will also cover uncategorized costs. This expense category includes any permit, toll, fine, lumper fee, recruitment cost, and driver orientation cost a trucker incurs. These expenses also depend on a company’s or operator-owner’s overall operating costs.
Miscellaneous expenses don’t clearly fit any of the expense categories we’re discussing here. A responsible carrier is cautious to avoid their causes to reduce their operating costs. For instance, they avoid reckless activities that attract fines and avoidable routing decisions that attract tolls.
Your truckload cost per mile will also capture other non-driver expenses. These costs take care of operating and admin operations. An average trucking company needs at least three to six drivers for every non-driving employee.
These employees include salespeople, administrators, dispatch staff, and safety operators. However, smart companies that implement effective standard processes and implement the right technology can significantly reduce these costs.
Lastly, your truckload carrier bill will cover fixed overhead costs. Under this expense, you will pay for the trucker’s rent, office equipment, communication costs, and other business utilities.
Benefits of Truckload Carrying in Toronto
Truckload shipping has many benefits you can take advantage of to rationalize your logistical operations. This section examines the top advantages of using it.
More Backhaul Opportunities
Get more backhaul opportunities by using this shipping method. You enjoy this advantage because drivers reduce deadhead and high-volume destinations, creating more backhaul opportunities.
Lower Costs for High-Volume Destinations
Many independent truckload drivers head to high-volume destinations and are most likely to offer lower rates. Using truckload lowers these costs because shippers have a higher negotiating power with carriers and drivers.
Less Expensive Than LTL
You enjoy lesser expenses when using this method than LTL because shippers have a single shipment pickup and drop point. Besides, most carriers usually offer lower rates for this alternative when shipping large or heavy goods.
A Faster Option
You enjoy faster delivery with this shipping alternative because all truckload shipments travel to a single destination. They also have fewer stops; hence, they hasten cargo delivery.
Your goods are safer in a truckload carrier truck than in an LTL one. The reason is that truckload trucks have fewer touchpoints and they travel faster than LTL carriers. Nobody handles your transit goods as in the LTL case where they’re handled when offloading or uploading other goods.
Also, nobody moves goods between trucks during deliveries. This way, your goods are less likely to get lost or damaged in transit because nobody opens your containers.
Full truckload shipping also saves you the limitations that are common with LTL shipping. You don’t have to abide by carriers’ weight or size restrictions. Additionally, you don’t worry about your shipment conforming to a carrier’s requirements because your delivery takes up the entire shipment. This method saves you lots of time you would waste working out weights or measurements before researching transporters for the best rates.
It’s More Efficient
Lastly, truckload shipping is more efficient. You enjoy safer and faster deliveries because your transporter doesn’t make stopovers to pick up or drop cargo. You can always expect your goods to arrive as per the time you see in your transport management system.
How to Choose a Truckload Carrier in Toronto
Choices have consequences. Thus, choosing the right truckload carriers for your supplies can either make or break your business. Here are tips to help you choose an ideal carrier in Toronto.
Excellent Communication and Customer Service
Excellent communication with your carrier is a vital element in your overall business relationship with them. Communicating effectively helps you iron out potential problems. Therefore, your chosen carrier should have a direct line for communicating with the relevant people managing your cargo.
This way, you can ask questions about your cargo and get timely answers. You also get prompt notifications regarding your shipment’s status. Overall, effective communication reduces costly blunders and delays.
Effective transportation requires networking. Your potential carrier needs connections with other reliable industry players to serve you better. Leveraging these networks can result in cost-effective prices and help to navigate industry regulations.
Trucker Reputation and Experience
You must also consider your carrier’s reputation and experience since these two can impact your reputation. Remember, people associate success with successful people and vice versa. Thus, choosing a reliable carrier also builds a reliable reputation for your business.
You may determine the carrier’s reputation by checking if they are approved members of the World Cargo Alliance. Further, asking the shipping company for references to recommend their service quality is beneficial.
The modern shipper operates in a tech-dependent and controlled environment. It would be beneficial to establish if the company uses tech, like transport optimization apps. Transport optimization apps give a transporter advanced insight into their scheduling and routing solutions.
Your potential shipper also needs real-time tracking software to optimize its working time. This technology’s analytical abilities enable transporters to identify wastage areas and inefficiency.
Lastly, transparent pricing should also inform your decision. Indeed, excellent carriers are costly. However, you shouldn’t blindly pay a carrier when their equally good competitors are cheaper. Always ensure that the potential carrier doesn’t have hidden costs. Go for a transporter who asks you to pay only for what you see on the invoice you agreed upon.
Let’s Get You Moving
Truckload shipping is one of the best logistical alternatives Toronto businesses have. Its average cost per mile is between $1.22 and $3.05. Additionally, this expense covers various elements such as insurance, driver compensation, and fuel.
Choosing this shipping method over LTL has many benefits like reduced overall costs and efficiency. You should also choose your truckload provider carefully to enjoy all its benefits.
Do you want to enjoy the best truckload carrier deals in and around Toronto? Don’t hesitate to call us today for a free consultation session to plan your next shipping experience.