Cost of Transportation of Construction Aggregates in Illinois in 2014

The cost of aggregate transportation is an important factor in determining the competitive position of individual aggregate producers because the aggregates themselves have a relatively low unit value per ton. Transportation adds significantly to the buyer’s total costs and can influence the buyer’s preference for specific producers, provided the product quality remains comparable. In the 15 years since aggregate transportation costs were first published by this author, no new estimates have been publicly available. As the market prices for aggregates change, so does the relative significance of transportation costs. This report is an attempt to estimate the current transportation costs by simulating a typical truck operation, as well as by using changes in the producer price index and the consumer price index.