An American Transport Research Institute estimates that fuel costs account for 30 to 40% of a fleet's cost per mile. Furthermore, trucking businesses and owner-operators sometimes struggle to reduce fuel expenses due to growing gasoline prices. According to the US Bureau of Labor Statistics, all types of gasoline prices climbed by a stunning 131.93% between 2000 and 2022, with an average inflation rate of 3.90% each year. Fuel prices in the United States increased by 12.84% between March 2021 and March 2022, the most significant increase since July 2008.

Rising fuel prices directly impact a carrier's profitability and bottom line. However, controlling fuel prices and lowering expenditures might help you enhance your company's financial health. In this blog article, we will discuss a few tips carriers may employ to reduce fuel costs and become more efficient and lucrative.

Vehicle maintenance concerns can have an impact on vehicle performance and fuel efficiency. Low tire pressure, in particular, significantly contributes to automobile fuel consumption. According to research from the US Department of Energy, lowering tire pressure by 1 pound per square inch (PSI) affects vehicle fuel economy by up to 0.3%. In addition, poor engine conditions and infrequent maintenance can reduce fuel economy. Using paper DVIRs (driver vehicle inspection reports) to track and fix vehicle and engine faults leaves many possibilities for human mistakes, wasting time, fuel, and, eventually, money. On the other hand, an advanced telematics system may give real-time data and insights into overall vehicle health. It allows you to develop a proactive and preventative maintenance schedule and stay ahead of concerns before they become fuel-burning problems.

It is estimated that idling costs around $5,600 for a vehicle that consumes $70,000 in fuel. You may dramatically minimize the fuel you consume monthly by recognizing drivers idle for too long or too frequently. Idle-time tracking is a feature of the Motive ELD Pro that allows you to monitor excessive idling throughout your fleet. You may detect drivers who regularly idle and begin counseling them. This is one of the essential tips to maximize fuel efficiency.

Another driving behavior that might reduce fuel economy is speeding. Increasing your driving speed from 65 to 70 miles per hour will raise your fuel usage by 9% on average. Aside from wasting gasoline, speeding increases the probability of a car accident. You can optimize fuel economy and fleet safety by keeping an eye on the average speed. Speeding can encourage risky driving habits, including strong acceleration, harsh turning, and hard braking.

Fleets should give frequent training to drivers on fuel economy essentials such as the proper use of adaptive cruise control, fuel-efficient driving habits, and the significance of idling as little as possible. Drivers should also be educated on how fleet telematics may assist them in taking real-time remedial action and tracking their fuel savings performance regularly. At the same time, incentive schemes can motivate drivers to accomplish crucial fuel economy objectives and milestones.

Fuel costs have reintroduced many asset management concerns for fleets that greatly influence any organization's bottom line. This is especially concerning because gasoline is the most expensive component of any fleet's total cost of ownership (TCO). While acquiring new vehicles might be difficult, having a good fuel efficiency and maintenance strategy is crucial to detect where expenditures are undermining the bottom line. A key issue for the business is that many fleets rely on diesel cost per gallon rather than data analytics to identify their fuel cost per mile (CPM). To create a baseline, businesses must examine their electronic logging device and maintenance data to define key performance indicators (KPIs) such as fuel efficiency and miles-per-gallon (mpg) by model year, mile-per-year analysis by model year, and fleet utilization by miles. When paired with a fleet modernization strategy, fleet management, and appropriate fleet services support, this technique can assist keep a fleet's cost per mile in check.

CPM historical patterns have accelerated in recent years, and numerous significant causes must be followed individually to understand how they affect revenues and losses. Components, services, and fuel costs rise when trade cycles are stretched. This will result in increased maintenance, but also on components generally not addressed in a shorter life cycle, where parts and service have seen a 10% to 20% cost rise depending on the component. Fuel has been variable, with cost rises and more than 25% declines in a quarter, making forecasting future expenditures complicated. This is why it is advised to concentrate on a manageable baseline.

Moreover, It is critical to comprehend how dual MPG on tractors works for modern and older models. There is a minor break-in time for newer units, but it is not as bad as it was 10 or 15 years ago when we saw a half-mile penalty. Today, they start at $8.41 a gallon, and fuel degradation is common as a vehicle nears the end of its life cycle. When considering life cycle management, you cannot base your procurement cycle on a one-year horizon. As a result, you must have a multi-year strategy in place and a one-, three-, and five-year plan for equipment replacement.

Maximizing a fleet's fuel efficiency is difficult since many variables exist, such as driver training and incentivization, vehicle maintenance, tire type, pressure, idling, etc. To maximize fuel economy, fleets must take a comprehensive approach supported by driver training and real-time data. Using data to examine fuel costs per mile rather than per gallon and determining the ideal life cycles of vehicles without overextending them will result in cost savings.