Guide
Truck downtime cost per day: what a day at the dock really costs
A truck that sits still still costs money. The bill keeps coming, and the load it did not haul is money that never arrives.
In short
- Fixed costs run every day, moving or not: payments, insurance, permits and fees, software.
- Contribution is what a running day earns after variable costs such as fuel and driver pay.
- An idle day costs you the contribution you would have earned. The fixed costs make it hurt, but they were due anyway.
- Compare that with what detention or layover pays before you accept a wait.
Hook. In the example, $480 of detention for 8 billable hours looks fine until you see that a running day contributes $620. The wait pays $140 less than a day on the road.
Two numbers per truck
Start with the fixed cost per day: add the monthly costs that do not change with miles and divide by 30. In the example that is $133.33 a day. It is the floor for every day, running or not.
Then estimate contribution per running day: revenue minus fuel, driver pay and other costs that rise with miles. Use your own last 3 months. An idle day loses that.
The figure stacks the fixed costs of one invented truck. Use the cost per mile tool for the variable side.
Price an idle day in five steps
List fixed monthly costs
Truck and trailer payments, insurance, permits, software.
Divide by 30
That is the fixed cost per calendar day.
Estimate running day contribution
Revenue minus variable cost, averaged over a month of running days.
Compare with the wait
Detention or layover pay vs contribution for the same time.
Set a trigger
Decide how long a wait is acceptable, and what you do after it.
Waits compared with a running day
| Billable hours past free time | Detention pays | Running day contributes | Difference |
|---|---|---|---|
| 2 hours | $120 | $620 | $500 short |
| 4 hours | $240 | $620 | $380 short |
| 8 hours | $480 | $620 | $140 short |
| 12 hours | $720 | $620 | $100 over |
Worked example EXAMPLE VALUES
Example data. An invented truck. Fixed costs of $4,000 a month. A running day contributes $620 after fuel and driver pay. The rate con pays $60 an hour after 2 free hours.
| Cost | Per month | Per day |
|---|---|---|
| Truck payment | $1,850 | $61.67 |
| Trailer payment | $450 | $15.00 |
| Insurance | $1,300 | $43.33 |
| Permits and fees | $260 | $8.67 |
| Software and phone | $140 | $4.67 |
| Total | $4,000 | $133.33 |
The truck contributes $620 on a running day and loses $133.33 a day while parked. A 10 hour wait pays 8 x $60 = $480, so on paper it is $140 short of a running day. That does not mean refuse every wait. Some waits are the price of a good lane, and a long enough wait pays more than a running day: 12 billable hours at $60 is $720. It means know the number before you agree to a tight appointment, and ask for the detention terms in the rate con.
Where it goes wrong
- Counting fixed costs as the loss. They are due anyway. The loss is the contribution you did not earn.
- Using revenue instead of contribution. Revenue ignores fuel and pay you did not spend.
- Ignoring the driver. A waiting driver also loses hours. See driver vs carrier detention.
- Using last year's numbers. Costs move. Update each month.
The formulas
Variable cost includes fuel, driver pay and tolls on that day.
Your costs, not ours
All dollar figures are invented. Use your own books for fixed and variable costs, and ask your accountant if you are not sure how to split them.
We do not give legal, tax or financial advice. Your contracts come first.
Questions
Should I include driver pay in fixed cost?
Only if you pay it whether the truck runs or not. If pay is per mile, it is variable.
Why divide by 30 and not 26?
It keeps the sum simple. Use your own working days if you prefer, and stay consistent.
Does detention ever cover a lost day?
Sometimes, if the rate and hours are high enough. Run the numbers. See detention pay.
How do I reduce idle days?
Track where they happen. The lane scorecard shows which lanes hold you.
Related: detention pay, layover pay, true RPM, rate per mile vs per day, all guides.
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