2015 / VOL 34 FLEETWATCH 59

W elcome to the FleetWatch truck operating benchmarks for 2015. The schedule covers a variety of typical primary

and secondary distribution trucking operations published since February 2004.

The objective is to provide operators and shippers (consignors) with a reliable independent guide to trucking costs incurred in the transportation of raw materials, semi-finished and finished products.

A thorough understanding of the assumptions and how they are applied in developing the benchmarks is necessary if the various benchmarks are to be informative, beneficial and helpful. While FleetWatch takesno responsibility for the accuracy of the estimates, considerable time and effort has been expended to ensure the various components are realistic and representative of the hypothetical transport tasks contained in the schedule. Updated estimates are published quarterly. However, the schedule is continuously monitored and updated monthly.

ASSUMPTIONSMany transport tasks are similar few

are ever identical. The benchmarks are based on average operating conditions in terms of demography, roads, annual kilometres, working days, vehicle capability, scheduled maintenance in accordance with manufacturers’ recommendations and competent drivers. Where actual operating conditions differ from these assumptions make the necessary adjustments to the

benchmarks so that they remain realistic and market related.

VEHICLE TYPEBriefly describes the vehicle

configuration contemplated for a specific task (eg – 4x2 rigid freight carrier with volume van body for medium distance secondary distribution of FMCG products). Thedescriptions attached to articulated vehicles indicate the number of axles (1.1.3 means a 4x2 truck-tractor and tridem semi-trailer. 1.2.2 a 6x4 truck-tractor and tandem semi-trailer).

PAYLOAD (TONS)The assumptions are based on typical

optimal legal mass payload that can be achieved on any number of vehicles, bodies and trailers freely available on the local market. In practice the actual payload will depend on the vehicle manufacturers’ specification and the road-ready unladen mass. Lightweight trailing equipment can improve payloads.

DECK LENGTH (METRES)The assumptions are based on typical

optimum mass distribution for the assumed vehicle configuration and the contemplated task. In practice there are many wheelbase and axle capacity options to suit specific requirements.

PALLETSThe assumption contemplates

1000x1200 mm 4-way entry pallets.

VOLUMECubic assumptions are based on

length, width and height of typical bodies applicable to the various operations. In practice this varies with measurements of specific bodies.

ANNUAL KILOMETRESAnnual kilometres are based on typical

operations. Annual kilometres of vehicles engaged in short and medium distance

secondary distribution vary considerably. Space limitations prohibit the inclusion of a wider variety of transport operations.

WORKING DAYSA five-day week is assumed for the

vehicles most likely to be involved in secondary distribution. Larger rigs often work longer hours to meet the demands of primary distribution.

SHIFTSShifts indicate the average daily working

hours of fridge units

USEFUL LIFEWhere applicable, the useful life is

based on a maximum of 800 000 km. This is in line with vehicle manufacturers’ maintenance contracts for standard operations over 48- or 60-month periods. In terms of depreciating assets, the introduction of international reporting standards (IRS) requires that all entities identify the useful life of vehicles when they are commissioned. The benchmarks assume the useful life to be the number of years required to cover the estimated cumulative kilometres for each task with a maximum of 800 000 km (where applicable). A 5-axle articulated rig (1.2.2.) covering100 000 kmpa has an assumed useful life of eight years is an example. See comments under depreciation for more detail. The useful life of the major components is an important element in achieving cost-effective transport when planning fleet size for medium- and long-term contracts.

CAPITAL COST All estimates are based on an estimate

of the cost of new vehicles and trailing equipment. The indicated initial cost of vehicles, trailers, bodies and auxiliary equipment (such as fridge units) is based on the average of published current selling prices of such items less known fleet discounts.

Compiled by Max Braun Exclusive

truck operating benchmarksMarket related owning & operating estimates for a variety of popular trucking operations

62

FLEETWATCH MARKET RELATED TRUCK OPERATING BENCHMARKS (Per Annum) 5 November 2015

OPERATION Short Med Long Med Long Truck Truck & 12.5 m 8.4 m 13.5 m 13.5m 14.7 m 14,7 taut- flat OPERATIONHaul Haul Haul Long Haul Med Trailer dual Ins dual tridem tridem tridem liner deckMetro haul Long axle Med axle axle reefer reefer inter inter

haul semi haul semi semi semi semi links linksASSUMPTIONS ASSUMPTIONSVehicle Type Panel Van Insulated Insulated Volume Flat 6x4 Rigid 6x4 Rigid 4-axle 6x2 5-axle 5-axle 6-axle 6-axle 7-axle 7-axle Vehicle Type

Van Van Van Van Deck & Trailer Artic Rigid Artic Artic Artic Artic Artic ArticAverage Payload (tons) 3 3.5 5.5 8 8 14 26 21 13.5 26 25 28 30 34 36 Average Payload (tons)Deck Length ( metres) 4 4.2 6.5 7.5 7.5 7.5 15 12.5 8.4 13.5 13.5 14.5 14.7 18 18 Deck Length ( metres)Pallets 4 6 8 8 8 24 20 16 24 24 28 30 36 36 PalletsCubes 16 20 37 37 90 92 Cubes Annual KM 50000 30000 60000 45000 85000 65000 100000 120000 135000 160000 160000 160000 180000 180000 200000 Annual KMWorking Days 260 260 260 260 260 260 260 260 260 260 260 286 286 286 286 Working DaysShift Hours (fridge) 11 11 10 10 Shift Hours (fridge)Useful Life (KM) 300000 350000 350000 450000 600000 800000 800000 600000 800000 800000 800000 800000 800000 800000 800000 Useful Life (KM)Useful Life (Years) 6 8 6 8 8 8 8 5 6 5 5 5 5 5 4 Economic Life (Years)CAPITAL COST CAPITAL COSTPrime Mover 373118 395829 621863 621863 621863 1172655 1172655 1070685 1359600 1379170 1449210 1431700 1485260 1616842.5 1616842.5 Prime MoverBody 137500 145200 110000 99000 137500 137500 302500 BodyAuxiliary Equipment 269640 315000 315000 472500 472500 auxiliary Equipment1st Trailer 31900 286000 286000 319000 528000 539000 220000 209000 1st Trailer2nd Trailer 396000 374000 2nd TrailerOther OtherTotal Capital Cost 373118 802969 1082063 731863 720863 1310155 1342055 1356685 1977100 1665170 1768210 2432200 2496760 2232843 2199843 Total Capital CostSTANDING COST STANDING COSTPrime Mover Depreciation 74624 79166 124373 124373 124373 234531 234531 214137 271920 275834 289842 286340 297052 323369 323369 Prime Mover DepreciationBody Depreciation 27500 21780 16500 14850 20625 45375 Body DepreciationAuxiliary Depreciation 50558 59063 59063 88594 88594 Auxiliary DepreciationTrailer Depreciation 21450 21450 23925 39600 40425 16500 46200 43725 Trailer DepreciationTotal Depreciation 74624 157223 205215 140873 139223 255156 255981 214137 397808 299759 329442 415359 402146 369569 367094 Total DepreciationCost of Capital 22648 48740 65681 44424 43756 79526 81463 82351 120010 101076 107330 147635 151553 135534 133530 Cost of CapitalPrime Mover Licence 1361 2112 4327 4327 4327 14419 14419 9480 11532 11532 13264 14914 14914 14914 14914 Prime Mover LicenceTrailer Licence 4327 4944 5700 5700 16404 16404 12432 11364 Trailer LicenceTotal Licence Fee 1361 2112 4327 4327 4327 18746 14424 11532 17232 18964 31318 31318 27346 26278 Total Licence FeeTotal Insurance 26118 56208 75744 51230 50460 91711 93944 94968 138397 116562 123775 170254 174773 156299 153989 Total InsuranceDriver Wages 101585 109967 122155 113638 122155 168755 168755 188195 187339 222695 253883 276108 276108 276108 276108 Driver WagesAssistant Wages 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 Assistant WagesTotal Wages 176960 185342 197530 189014 197530 244130 244130 263570 262715 298070 329258 351484 351484 351484 351484 Total WagesTOTAL STANDING COST 301711 449626 548498 429868 435296 670523 694264 669450 930461 832699 908769 1116049 1111274 1040230 1032374 TOTAL STANDINGAs a % of Total Cost 56.45% 60.99% 53.51% 61.54% 48.29% 56.45% 45.60% 42.86% 47.68% 38.74% 43.05% 41.65% 38.79% 37.27% 35.59% As a % of Total costVARIABLE COST VARIABLE COSTPrime Mover Fuel 159554 125189 260393 152574 288195 293846 493168 554027 610296 867976 789069 867976 976473 1148792 1239966 Prime Mover FuelAuxiliary Fuel 67811 48841 81373 81373 Auxiliary FuelTotal Fuel 159554 192999 309233 152574 288195 293846 493168 554027 610296 867976 789069 949349 1057846 1148792 1239966 Total FuelTop-up Oil 7978 9650 15462 7629 14410 14692 24658 27701 30515 43399 39453 47467 52892 57440 61998 Top-up OilPrime Mover Repair & Maint 37500 25800 51600 41850 79050 71500 110000 132000 121500 176000 144000 208000 234000 234000 252000 Prime Mover Repair & MaintAuxiliary Repair & Maint 24000 48000 108000 96000 108000 Auxiliary Repair & MaintTrailer Repair & Maintenance 35000 42000 56000 56000 80000 108000 108000 100000 Trailer Repair & MaintenanceTotal Repair & Maintenance 37500 49800 99600 41850 79050 71500 145000 174000 229500 232000 200000 384000 450000 342000 352000 Total Repair & MaintTotal Tyres 7686 5128 22200 16650 34408 37258 65532 36768 50616 73461 73461 82443 92748 102852 114280 Total TyresUnforeseen Expense 20000 30000 30000 50000 50000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 Unforeseen ExpenseTOTAL VARIABLE 232718 287578 476495 268702 466063 517296 828359 892497 1020926 1316836 1201984 1563259 1753486 1751083 1868244 TOTAL VARIABLEAs a % of Total Cost 43.55% 39.01% 46.49% 38.46% 51.71% 43.55% 54.40% 57.14% 52.32% 61.26% 56.95% 58.35% 61.21% 62.73% 64.41% As a % of Total costTOTAL OPERATING COSTS 534429 737203 1024992 698570 901359 1187820 1522623 1561946 1951388 2149535 2110753 2679308 2864760 2791314 2900618 TOTAL OPERATING COSTSSUMMARY SUMMARYStanding Cost Rands per/day 1160 1729 2110 1653 1674 2579 2670 2575 3579 3203 3495 3902 3886 3637 3610 Standing Cost p/dayStanding Cost (Rands/Km) 6.03 14.99 9.14 9.55 5.12 10.32 6.94 5.58 6.89 5.20 5.68 6.98 6.17 5.78 5.16 Standing Cost (Rands)Variable Cost (Rands/Km) 4.65 9.59 7.94 5.97 5.48 7.96 8.28 7.44 7.56 8.23 7.51 9.77 9.74 9.73 9.34 Variable Cost (Rands)Total CPK (Rands/Km) 10.69 24.57 17.08 15.52 10.60 18.27 15.23 13.02 14.45 13.43 13.19 16.75 15.92 15.51 14.50 Total CPK (Rands)Cost per ton (Rands) 685 810 717 336 433 326 225 286 556 318 325 335 334 287 282 Cost per ton (Rands)Cost per Pallet (Rands) 709 657 336 433 571 244 300 469 344 338 335 334 271 282 Cost per Pallet (Rands)Cost per Ton/Km (100% Load) R 3.56 R 7.02 R 3.11 R 1.94 R 1.33 R 1.31 R 0.59 R 0.62 R 1.07 R 0.52 R 0.53 R 0.60 R 0.53 R 0.46 R 0.40 Cost per Ton/Km (100% Load)Cost per Ton/Km (75% Load) R 4.75 R 9.36 R 4.14 R 2.59 R 1.77 R 1.74 R 0.78 R 0.83 R 1.43 R 0.69 R 0.70 R 0.80 R 0.71 R 0.61 R 0.54 Cost per Ton/Km (75% Load)Cost per Ton/Km (50% Load) R 7.13 R 14.04 R 6.21 R 3.88 R 2.65 R 2.61 R 1.17 R 1.24 R 2.14 R 1.03 R 1.06 R 1.20 R 1.06 R 0.91 R 0.81 Cost per Ton/Km (50% Load)Cost per Pallet/Km (100%) R 6.14 R 2.85 R 1.94 R 1.33 R 2.28 R 0.63 R 0.65 R 0.90 R 0.56 R 0.55 R 0.60 R 0.53 R 0.43 R 0.40 Cost per Pallet/Km (100%)Cost per Cube/Km (100%) R 0.67 R 1.23 R 0.46 R 0.42 R 0.19 Cost per Cube/Km (100%)Cost per Deck Metre (Rands) 675 607 358 462 609 390 481 893 612 601 646 681 542 563 Cost per Deck Metre (Rands)RATIOS RATIOSUseful Life Cost 3206577 5897627 6149955 5588562 7210874 9502558 12180981 7809732 11708326 10747675 10553764 13396538 14323798 13956569 11602473 Useful Life CostCapital Cost per Payload Ton 124373 229420 196739 91483 90108 93583 51618 64604 146452 64045 70728 86864 83225 65672 61107 Capital Cost per Payload TonCapital Cost per Deck Metre 93279 191183 166471 97582 96115 174687 89470 108535 235369 123346 130979 167738 169848 124047 122213 Capital Cost per Deck MetreCapital Cost % Useful Life Cost 11.64% 13.62% 17.59% 13.10% 10.00% 13.79% 11.02% 17.37% 16.89% 15.49% 16.75% 18.16% 17.43% 16.00% 18.96% Capital Cost % Eco Life CostOper Cost per Payload Ton 178143 210630 186362 87321 112670 84844 58562 74378 144547 82674 84430 95690 95492 82097 80573 Oper Cost per Payload TonOper Cost per Deck Metre 133607 175525 157691 93143 120181 158376 101508 124956 232308 159225 156352 184780 194882 155073 161145 Oper Cost per Deck MetreCapital Cost % Operating Cost 69.82% 108.92% 105.57% 104.77% 79.98% 110.30% 88.14% 86.86% 101.32% 77.47% 83.77% 90.78% 87.15% 79.99% 75.84% Capital Cost % Operating CostMaint Cost % Variable Costs 16.11% 17.32% 20.90% 15.57% 16.96% 13.82% 17.50% 19.50% 22.48% 17.62% 16.64% 24.56% 25.66% 19.53% 18.84% Maint Cost % Variable CostMaintCost % Operating Cost 7.02% 6.76% 9.72% 5.99% 8.77% 6.02% 9.52% 11.14% 11.76% 10.79% 9.48% 14.33% 15.71% 12.25% 12.14% Maintenance Cost % Operating CostFuel Cost % Variable Cost 68.56% 67.11% 64.90% 56.78% 61.84% 56.80% 59.54% 62.08% 59.78% 65.91% 65.65% 60.73% 60.33% 65.60% 66.37% Fuel Cost % Variable CostFuel Cost % Operating Cost 29.86% 26.18% 30.17% 21.84% 31.97% 24.74% 32.39% 35.47% 31.27% 40.38% 37.38% 35.43% 36.93% 41.16% 42.75% Fuel Cost % Operating CostCO2 (tons pa) 40.76 49.31 83.85 38.98 73.63 75.08 126.00 141.55 173.25 221.76 201.60 242.55 270.27 293.51 316.80 CO2 (tons pa)

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2015 / VOL 34 FLEETWATCH 61

FLEETWATCH MARKET RELATED TRUCK OPERATING BENCHMARKS (Per Annum) 5 November 2015

OPERATION Short Med Long Med Long Truck Truck & 12.5 m 8.4 m 13.5 m 13.5m 14.7 m 14,7 taut- flat OPERATIONHaul Haul Haul Long Haul Med Trailer dual Ins dual tridem tridem tridem liner deckMetro haul Long axle Med axle axle reefer reefer inter inter

haul semi haul semi semi semi semi links linksASSUMPTIONS ASSUMPTIONSVehicle Type Panel Van Insulated Insulated Volume Flat 6x4 Rigid 6x4 Rigid 4-axle 6x2 5-axle 5-axle 6-axle 6-axle 7-axle 7-axle Vehicle Type

Van Van Van Van Deck & Trailer Artic Rigid Artic Artic Artic Artic Artic ArticAverage Payload (tons) 3 3.5 5.5 8 8 14 26 21 13.5 26 25 28 30 34 36 Average Payload (tons)Deck Length ( metres) 4 4.2 6.5 7.5 7.5 7.5 15 12.5 8.4 13.5 13.5 14.5 14.7 18 18 Deck Length ( metres)Pallets 4 6 8 8 8 24 20 16 24 24 28 30 36 36 PalletsCubes 16 20 37 37 90 92 Cubes Annual KM 50000 30000 60000 45000 85000 65000 100000 120000 135000 160000 160000 160000 180000 180000 200000 Annual KMWorking Days 260 260 260 260 260 260 260 260 260 260 260 286 286 286 286 Working DaysShift Hours (fridge) 11 11 10 10 Shift Hours (fridge)Useful Life (KM) 300000 350000 350000 450000 600000 800000 800000 600000 800000 800000 800000 800000 800000 800000 800000 Useful Life (KM)Useful Life (Years) 6 8 6 8 8 8 8 5 6 5 5 5 5 5 4 Economic Life (Years)CAPITAL COST CAPITAL COSTPrime Mover 373118 395829 621863 621863 621863 1172655 1172655 1070685 1359600 1379170 1449210 1431700 1485260 1616842.5 1616842.5 Prime MoverBody 137500 145200 110000 99000 137500 137500 302500 BodyAuxiliary Equipment 269640 315000 315000 472500 472500 auxiliary Equipment1st Trailer 31900 286000 286000 319000 528000 539000 220000 209000 1st Trailer2nd Trailer 396000 374000 2nd TrailerOther OtherTotal Capital Cost 373118 802969 1082063 731863 720863 1310155 1342055 1356685 1977100 1665170 1768210 2432200 2496760 2232843 2199843 Total Capital CostSTANDING COST STANDING COSTPrime Mover Depreciation 74624 79166 124373 124373 124373 234531 234531 214137 271920 275834 289842 286340 297052 323369 323369 Prime Mover DepreciationBody Depreciation 27500 21780 16500 14850 20625 45375 Body DepreciationAuxiliary Depreciation 50558 59063 59063 88594 88594 Auxiliary DepreciationTrailer Depreciation 21450 21450 23925 39600 40425 16500 46200 43725 Trailer DepreciationTotal Depreciation 74624 157223 205215 140873 139223 255156 255981 214137 397808 299759 329442 415359 402146 369569 367094 Total DepreciationCost of Capital 22648 48740 65681 44424 43756 79526 81463 82351 120010 101076 107330 147635 151553 135534 133530 Cost of CapitalPrime Mover Licence 1361 2112 4327 4327 4327 14419 14419 9480 11532 11532 13264 14914 14914 14914 14914 Prime Mover LicenceTrailer Licence 4327 4944 5700 5700 16404 16404 12432 11364 Trailer LicenceTotal Licence Fee 1361 2112 4327 4327 4327 18746 14424 11532 17232 18964 31318 31318 27346 26278 Total Licence FeeTotal Insurance 26118 56208 75744 51230 50460 91711 93944 94968 138397 116562 123775 170254 174773 156299 153989 Total InsuranceDriver Wages 101585 109967 122155 113638 122155 168755 168755 188195 187339 222695 253883 276108 276108 276108 276108 Driver WagesAssistant Wages 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 75375 Assistant WagesTotal Wages 176960 185342 197530 189014 197530 244130 244130 263570 262715 298070 329258 351484 351484 351484 351484 Total WagesTOTAL STANDING COST 301711 449626 548498 429868 435296 670523 694264 669450 930461 832699 908769 1116049 1111274 1040230 1032374 TOTAL STANDINGAs a % of Total Cost 56.45% 60.99% 53.51% 61.54% 48.29% 56.45% 45.60% 42.86% 47.68% 38.74% 43.05% 41.65% 38.79% 37.27% 35.59% As a % of Total costVARIABLE COST VARIABLE COSTPrime Mover Fuel 159554 125189 260393 152574 288195 293846 493168 554027 610296 867976 789069 867976 976473 1148792 1239966 Prime Mover FuelAuxiliary Fuel 67811 48841 81373 81373 Auxiliary FuelTotal Fuel 159554 192999 309233 152574 288195 293846 493168 554027 610296 867976 789069 949349 1057846 1148792 1239966 Total FuelTop-up Oil 7978 9650 15462 7629 14410 14692 24658 27701 30515 43399 39453 47467 52892 57440 61998 Top-up OilPrime Mover Repair & Maint 37500 25800 51600 41850 79050 71500 110000 132000 121500 176000 144000 208000 234000 234000 252000 Prime Mover Repair & MaintAuxiliary Repair & Maint 24000 48000 108000 96000 108000 Auxiliary Repair & MaintTrailer Repair & Maintenance 35000 42000 56000 56000 80000 108000 108000 100000 Trailer Repair & MaintenanceTotal Repair & Maintenance 37500 49800 99600 41850 79050 71500 145000 174000 229500 232000 200000 384000 450000 342000 352000 Total Repair & MaintTotal Tyres 7686 5128 22200 16650 34408 37258 65532 36768 50616 73461 73461 82443 92748 102852 114280 Total TyresUnforeseen Expense 20000 30000 30000 50000 50000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 Unforeseen ExpenseTOTAL VARIABLE 232718 287578 476495 268702 466063 517296 828359 892497 1020926 1316836 1201984 1563259 1753486 1751083 1868244 TOTAL VARIABLEAs a % of Total Cost 43.55% 39.01% 46.49% 38.46% 51.71% 43.55% 54.40% 57.14% 52.32% 61.26% 56.95% 58.35% 61.21% 62.73% 64.41% As a % of Total costTOTAL OPERATING COSTS 534429 737203 1024992 698570 901359 1187820 1522623 1561946 1951388 2149535 2110753 2679308 2864760 2791314 2900618 TOTAL OPERATING COSTSSUMMARY SUMMARYStanding Cost Rands per/day 1160 1729 2110 1653 1674 2579 2670 2575 3579 3203 3495 3902 3886 3637 3610 Standing Cost p/dayStanding Cost (Rands/Km) 6.03 14.99 9.14 9.55 5.12 10.32 6.94 5.58 6.89 5.20 5.68 6.98 6.17 5.78 5.16 Standing Cost (Rands)Variable Cost (Rands/Km) 4.65 9.59 7.94 5.97 5.48 7.96 8.28 7.44 7.56 8.23 7.51 9.77 9.74 9.73 9.34 Variable Cost (Rands)Total CPK (Rands/Km) 10.69 24.57 17.08 15.52 10.60 18.27 15.23 13.02 14.45 13.43 13.19 16.75 15.92 15.51 14.50 Total CPK (Rands)Cost per ton (Rands) 685 810 717 336 433 326 225 286 556 318 325 335 334 287 282 Cost per ton (Rands)Cost per Pallet (Rands) 709 657 336 433 571 244 300 469 344 338 335 334 271 282 Cost per Pallet (Rands)Cost per Ton/Km (100% Load) R 3.56 R 7.02 R 3.11 R 1.94 R 1.33 R 1.31 R 0.59 R 0.62 R 1.07 R 0.52 R 0.53 R 0.60 R 0.53 R 0.46 R 0.40 Cost per Ton/Km (100% Load)Cost per Ton/Km (75% Load) R 4.75 R 9.36 R 4.14 R 2.59 R 1.77 R 1.74 R 0.78 R 0.83 R 1.43 R 0.69 R 0.70 R 0.80 R 0.71 R 0.61 R 0.54 Cost per Ton/Km (75% Load)Cost per Ton/Km (50% Load) R 7.13 R 14.04 R 6.21 R 3.88 R 2.65 R 2.61 R 1.17 R 1.24 R 2.14 R 1.03 R 1.06 R 1.20 R 1.06 R 0.91 R 0.81 Cost per Ton/Km (50% Load)Cost per Pallet/Km (100%) R 6.14 R 2.85 R 1.94 R 1.33 R 2.28 R 0.63 R 0.65 R 0.90 R 0.56 R 0.55 R 0.60 R 0.53 R 0.43 R 0.40 Cost per Pallet/Km (100%)Cost per Cube/Km (100%) R 0.67 R 1.23 R 0.46 R 0.42 R 0.19 Cost per Cube/Km (100%)Cost per Deck Metre (Rands) 675 607 358 462 609 390 481 893 612 601 646 681 542 563 Cost per Deck Metre (Rands)RATIOS RATIOSUseful Life Cost 3206577 5897627 6149955 5588562 7210874 9502558 12180981 7809732 11708326 10747675 10553764 13396538 14323798 13956569 11602473 Useful Life CostCapital Cost per Payload Ton 124373 229420 196739 91483 90108 93583 51618 64604 146452 64045 70728 86864 83225 65672 61107 Capital Cost per Payload TonCapital Cost per Deck Metre 93279 191183 166471 97582 96115 174687 89470 108535 235369 123346 130979 167738 169848 124047 122213 Capital Cost per Deck MetreCapital Cost % Useful Life Cost 11.64% 13.62% 17.59% 13.10% 10.00% 13.79% 11.02% 17.37% 16.89% 15.49% 16.75% 18.16% 17.43% 16.00% 18.96% Capital Cost % Eco Life CostOper Cost per Payload Ton 178143 210630 186362 87321 112670 84844 58562 74378 144547 82674 84430 95690 95492 82097 80573 Oper Cost per Payload TonOper Cost per Deck Metre 133607 175525 157691 93143 120181 158376 101508 124956 232308 159225 156352 184780 194882 155073 161145 Oper Cost per Deck MetreCapital Cost % Operating Cost 69.82% 108.92% 105.57% 104.77% 79.98% 110.30% 88.14% 86.86% 101.32% 77.47% 83.77% 90.78% 87.15% 79.99% 75.84% Capital Cost % Operating CostMaint Cost % Variable Costs 16.11% 17.32% 20.90% 15.57% 16.96% 13.82% 17.50% 19.50% 22.48% 17.62% 16.64% 24.56% 25.66% 19.53% 18.84% Maint Cost % Variable CostMaintCost % Operating Cost 7.02% 6.76% 9.72% 5.99% 8.77% 6.02% 9.52% 11.14% 11.76% 10.79% 9.48% 14.33% 15.71% 12.25% 12.14% Maintenance Cost % Operating CostFuel Cost % Variable Cost 68.56% 67.11% 64.90% 56.78% 61.84% 56.80% 59.54% 62.08% 59.78% 65.91% 65.65% 60.73% 60.33% 65.60% 66.37% Fuel Cost % Variable CostFuel Cost % Operating Cost 29.86% 26.18% 30.17% 21.84% 31.97% 24.74% 32.39% 35.47% 31.27% 40.38% 37.38% 35.43% 36.93% 41.16% 42.75% Fuel Cost % Operating CostCO2 (tons pa) 40.76 49.31 83.85 38.98 73.63 75.08 126.00 141.55 173.25 221.76 201.60 242.55 270.27 293.51 316.80 CO2 (tons pa)

62 FLEETWATCH VOL 34 / 2015

truck operating benchmarks

Comment by Max Braun

STANDING COST/FIXED COSTSStanding costs are incurred whether the vehicle moves or just stands. When vehicles do not cover significant kiolometres or work for long hours, standing costs will be high and difficult to recover. The assumptions are:

DEPRECIATIONDepreciation is based on the assumption

that all vehicles are new and financed via an instalment sale, financial or operating lease. In line with current banking practice there is no residual value. Vehicle buyers with an outstanding credit rating and operating track record receive more generous terms. Conversely, those with a poor record will meet with tougher conditions. The net amount to depreciate is based on: • Vehicles – 20% a year over five years.• Auxiliaries – 25% a year straight line.• Trailers – 10% a year straight line.

Tyre values are not deducted from the initial price of vehicles and trailers prior to depreciation. It is important to remember that in terms of the IRS the useful life of vehicles and equipment must be assessed at least annually and revised to accommodate any significant changes that may have occurred to lengthen or shorten the useful life or diminish the ultimate residual value. For those interested read accounting codes AC123 and AC128.

COST OF CAPITAL“There’s no free lunch” as the saying

goes. Interest on the cost of vehicles and equipment is calculated at the prime bank overdraft rate (currently 9.0% a year) on the capital cost less an RV of 25%. The calculation indicates the average interest paid per annum on the reducing balance over five years.

VEHICLE LICENCESLicence fees for vehicles and trailers are

based on the current Gauteng tariff.

INSURANCEInsurance cost assumes the operator has

a low risk rating. Premiums are set at 7.0 per cent of the purchase price (replacement value) for vehicles, equipment and trailers.

WAGESDriver and assistant wages vary

considerably across the country in terms of vehicle size, primary and secondary distribution tasks, region, different operators and the structure of remuneration packages. All assumptions include an allowance for company contributions but exclude overtime and bonuses. Where applicable an assistant has been included as a casual, daily worker

VARIABLE COSTSVariable costs (also known as running

costs) are incurred when the wheels turn. These include:

FUELA major cost item in all transport

operations. Where annual kilometres exceed about 120000 km a year, fuel is usually the largest expense. Fuel consumption is calculated according

to a formula that assumes the vehicle is always fully loaded, travels at an average speed of approximately 80% of the speed limit in the case of highway operations and 75% of the urban speed limit. The formula takes into account an assumed maximum power demand of between 55% and 60% when expressed as a percentage of maximum available kW/hrs for

THE NINE CENTS a litre decline inthe wholesale price of diesel provides miniscule relief to the embattled business of trucking. Fuel as a percentage of operating costs (excluding overhead expenses and toll fees) is almost 43% for large rigs covering around 700 kilometres a working day. The ongoing increase in fix costs such as equipment prices, maintenance and tyres sets standing costs per day at around R3610 a day. Useful life cost of a seven-axle interlink based on four years service with 800000 kilometres on the clock is now just short of R12 million.

The outlook for the remainder of the year remains much the same with a reasonable possibility for a further weakening in the oil price. The next round of equipment price reviews is likely to be towards the end of the first quarter in 2016. Making sure each vehicle in the fleet is working to optimum potential is a proven method of containing operating costs.

2015 / VOL 34 FLEETWATCH 63

truck operating benchmarks

ROAD TRANSPORT COST COMPARISON

Based on a 7-axle Interlink covering 200000 kmpa, working 286 days a year

As at Dec 2010 2011 2012 2013 2014 2015** 2015*** 2015**** % change

Average pa

Equipment Cost 1678900 1772424 1838599 1940900 2099750 2099750 2199843 2199843 31.03% 5.75%

Interest (prime) 9% 9% 8.5% 8.5% 9.25% 9.25% 9.25% 9.25% 2.78% 0.51%

Fixed Costs 713112 827560 860613 889745 969359 969359 1023875 1024851 43.72% 8.10%

Running Costs 1401735 1712260 1889340 2031687 1911642 1663362 1727442 1905402 35.93% 6.65%

TOTAL COSTS* 2114847 2599800 2749953 2921433 2881001 2632721 2942729 2930253 38.56% 7.14%

Fuel Cost 869086 1199600 1301657 1434251 1294846 1058389 1290286 1024851 17.92% 3.32%

Fuel cpl 7.605 10.487 11.390 12.550 11.330 9.261 11.228 11.178 46.98% 8.70%

Fuel % of Total Costs 41.09% 46.14% 47.33% 49.09% 44.94% 40.20% 43.85% 43.60% 6.10% 1.13%

Standing Cost /day 2493 2894 3009 3111 3389 3389 3580 3583 43.72% 8.10%

RPK 10.57 13 13.75 14.61 14.41 13.16 14.71 14.65 38.60% 7.15%

C/Tkm 100% Lfactor 29 36 38 41 40 37 39 41 41.38% 7.66%

C/Tkm 50% Lfactor 58 72 76 82 80 74 77 82 41.38% 7.66%

*Total costs exclude overhead and administration expenses and toll fees where applicable

** Feb 2015 Source: MBCS

*** April 2015 **** May 2015

each task. A similar approach is used in calculating the fuel used by fridge units. The price of fuel is based on the pump price in Gauteng for 500 ppm diesel. Bulk rebates are ignored.

TOP-UP OILIs based on five per cent of the

fuel cost.

REPAIRS & MAINTENANCEThe assumed cost of maintenance

is based on current vehicle manufacturer and FML maintenance contract rates, expected economic

component life and industry experience. The assumptions take into account the complexity of each task including typical operating conditions such as roads, topography, traffic density etc. Repair and maintenance costs for fridge operations are calculated in hours.

TYRESTyre life is based on typical

casing life currently experienced in the various operations. Major tyre supplier tyre management programmes offer excellent data 64

64 FLEETWATCH VOL 34 / 2015

to establish achievable tyre performance.

UNFORESEENAn amount of R20 000 up

to R100 000 a year for different vehicle configurations is allowed to cover number of unexpected and unforeseen expenses.

EXCLUSIONSThe estimates do not include

toll fees, vehicle tracking, engine protection or other optional equipment. No allowance is made for administration or overhead expenses. The variation in operator approach to such costs excludes the inclusion of a sensible amount to cover these aspects as a typical benchmark.

SUMMARYThe summary expresses

operating benchmarks under numerous headings including tons, ton/km, pallets, pallet/km and metres of deck length. It is important to note that the calculations assume a fully loaded vehicle. A 75% and 50% load factor shows the difference in the average cost per ton/km.

RATIOSManagement ratios provide

an excellent insight into the high capital and operating cost of vehicles, especially when not properly managed. However, correctly selected vehicles that are decently driven and timeously maintained, offer cost-effective transport to shippers and the prospect of a commercially acceptable return for the operator. A predicted carbon footprint based on 2.772 kg per litre of fuel burnt is included.

NOTEThe FleetWatch truck operating

benchmarks offer shippers and operators the opportunity to fine tune these estimates to suit their specific transport operations or needs. Where particular elements differ from your operations, simply make the necessary adjustments.

If, however, you require more information to complete your benchmarks, contact Max Braun at maxbraun@iafrica.com for someassistance.

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