Mitigating Fleet Cost Hikes Through Leasing

It’s more expensive than ever to run a fleet due to increased fuel and maintenance costs. Consider full-service leasing to protect yourself from rising costs.

According to a report from the American Transportation Research Institute (ATRI), “An Analysis of the Operational Costs of Trucking: 2022 Update,” the total marginal costs of trucking grew by 12.7% in 2021 to $1.85 per mile. Two of the biggest contributors to the increase were fuel, which was 35.4% higher in 2021 than in 2020, and repair and maintenance, which were 18.2% higher in 2021 than in 2020.

While fleets have no direct control over fuel costs, they should consider the way trucks are spec’d, operated and maintained to get the best fuel economy possible. Contributing to the increased cost of repair and maintenance is the parts shortage, which led to higher parts pricing, higher repair costs for complex equipment, and an increased focus on maintenance offsetting purchase and/or leasing declines

From this report, it does not look like we will see much short-term improvement in supply chain issues that have led to the parts shortage. And trucks will only get more complex, especially considering the upcoming round ofEPA emissions standards.

With operational costs of trucking at a 15-year high, the benefits of full-service leasing are greater than ever for these reasons:

• Fleet leasing can minimize costs because leasing companies have economies of scale they can use to make repairs more cost-effective. 
• Fleets have a set price for maintenance and repair that they can budget and plan for instead of having to deal with the volatility of today’s pricing. 
• Fleets get the opportunity to obtain newer equipment, as the lease term allows for new equipment upon renewal.
• Fleets benefit from the leasing company’s expertise as to which specs work best with duty cycles, resulting in better fuel economy and lower fuel spend.

Given today’s high operating costs, consider the benefits of a shift from an ownership model to a leasing model to reduce costs and lock in a big portion of your operating costs.