Section 1: 
Introduction to Truckload Transportation

Section 1 provides a general introduction into the basic components of the truckload transportation industry.  These two chapters provide the foundation for the more advanced concepts presented later in the book. 

Chapter 1 covers all the key carrier metrics including utilization, empty miles, and revenue per mile.  The chapter also includes a detailed timeline and description of a typical driver's daily activities over a 3 day period.  

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Chapter 2 covers the basic financial model of a traditional carrier and also explores the financial impact of key operating variables including utilization, loaded revenue per mile, and the empty mile percentage.

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Chapter 1:  Introduction to Truckload Transportation
Chapter 1 provides a general introduction to the truckload industry.  Key topics include carrier structure and management, types of trucking operations, driver hours-of-service rules, driver turnover and an overview of truckload operating costs.  Key topics include:
  • The Trucking Business Cycle
  • The Carrier Organization Structure 
  • Types of Trucking Operations
    • Linehaul
    • Regional
    • Shorthaul
    • Dedicated
  • Mileage Types
    • Billed Miles
    • Loaded Miles
    • Empty Miles
    • Out-of-Route Miles
  • Revenue Types
    • Linehaul Revenue
    • Accessorial Revenue
    • Loaded Revenue Per Mile
  • Net Revenue Per Mile
  • Truckload Operating Costs
    • Variable costs including driver pay, fuel, maintenance and insurance
    • Fixed costs including tractor costs, trailer costs and overhead
  • Driver Hours-of-Service Regulations
  • Driver Turnover

Chapter 2:  The Trucking Business Model
Chapter 2 provides a detailed analysis of how a trucking company generates revenues and measures profits.  The chapter provides a detailed analysis on the interaction of utilization, empty miles, length of haul and revenue per mile.  Key topics include:

  • Operating Ratio Analysis and Sensitivity Analysis 
    • Utilization and Cost Per Mile
    • Length of Haul and Cost Per Mile
    • Empty Miles and Net Revenue Per Mile
    • Break-Even Utilization Analysis
  • The Levels of Trucking Cost Structure
  • Primary Cost Drivers for Carriers
  • Activity-Based Costing
    • Designing the Cost Model
    • Applying the Cost Model
  • Revenue Per Truck Per Day and Profitability

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