Why Cost Per Hour and Cost Per Day Matter Just as Much as Cost Per Mile

Group 1 - The article emphasizes that while cost per mile is a familiar metric for carriers, it only provides a partial view of business expenses, necessitating the consideration of cost per hour and cost per day for a comprehensive understanding [1][5]. - In the spot market, especially when using load boards, cost per hour and cost per day can be more relevant than cost per mile, as they help explain the profitability of various loads [2][3]. - The article outlines that every carrier has two categories of expenses: fixed costs, which are incurred regardless of truck movement, and variable costs, which scale with usage [3][4]. Group 2 - Fixed costs include truck payments, insurance, permits, compliance, trailer payments, accounting, ELD subscriptions, and base salary draws, while variable costs encompass fuel, maintenance, repairs, tires, tolls, DEF, and driver pay [4]. - The concept of breakeven is crucial, as it answers the question of the costs required to keep operations running before generating profit, highlighting the importance of understanding both time and mileage in this context [5][6]. - The article argues that breakeven should not be viewed solely as a mileage figure but also as a time metric, which is essential for effective financial planning in the trucking industry [6].