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How much does a typical Fortune 500 manufacturer spend to insure it's goods in transit?
A typical Fortune 500 manufacturer annually spends $8,104,166.67 on insurance for its goods in transit. After an exhaustive search, I was unable to find information about the average spending of Fortune 500 manufacturers for cargo insurance. I looked through the budgets of various companies, and this information was not publicly available. Also, I looked for the percentage of revenue used by companies on cargo insurance, but this information was also not available. I was able to learn that the cargo rates vary based on what a truck is hauling. For these reasons, I attempted to triangulate a solution. To do this, I searched for information regarding the number of trucks and tractors of each Fortune 500 organization. Below you will find a deep dive of my findings.
THE FLEETS OF FORTUNE 500 MANUFACTURERS
The publication Transport Topics offers the following information about Fortune 500 companies. PepsiCo has 11,225 tractors and 3,605 trucks (14,830 in total). Sysco has 8,534 tractors and 1,042 trucks (9,576 in total). Walmart has 6,398 tractors and 199 trucks (6,597 in total). Coca-Cola Co. has 5,487 tractors and 1,354 trucks ($6,841,000 in total). US Foods has 5,270 tractors and 387 trucks (5,657 in total). Halliburton Co. has 4,243 tractors and 881 trucks (5,124 in total).
CALCULATIONS
According to the publication Trusted Choice, the average that manufacturers pay for cargo insurance annually is $1,000. To obtain the expenditure of the typical Fortune 500 manufacturer on insurance for goods in transit, I did the following. I added the trucks and tractors of six Fortune 500 companies, and then I multiplied this value by $1,000.
PepsiCo: 14,830 x $1,000=$14,830,000
Sysco: 9,576x $1,000=$9,576,000
Walmart : 6,597x $1,000=$6,597,000
Coca Cola: 6,841x $1000=$6,841,000
US Foods: 5,657x $1000=$5,657,000
Halliburton Co. : 5,124 x $1000=$5,124,000
The average of all these amounts is $8,104,166.67.
$14,830,000 + $9,576,000 + $6,597,000 + $6,841,000 + $5,657,000 + $5,124,000 = $48,625,000/6= $8,104,166.67
CONCLUSION
To conclude, I was able to triangulate that the typical Fortune 500 manufacturer annually spends $8,104,166.67 on insurance for its goods. I used information regarding the number of trucks and tractors of each Fortune 500 organization, and I multiplied this by $1,000, which according to Trusted Choice is the average that manufacturers pay for cargo insurance annually.