diesel fuel.jpg

Offset possible fuel hikes by managing fuel consumption now

Oct. 1, 2019
There has been some talk in the news lately about a possible increase in the cost of diesel fuel.

There has been some talk in the news lately about a possible increase in the cost of diesel fuel. Some of the concern stems from IMO 2020, which toughen rules on sulfur emissions from ships.

Beginning in January, the International Maritime Organization’s new rules will ban ships from using fuels with a sulfur content above 0.5%. Today typical fuel used by ships has a sulfur content of 3.5%.

You may be wondering why trucking should be concerned about this development in the shipping industry. Fuel with this low sulfur content is better known to us as ultra-low sulfur diesel — the very fuel being used by diesel-powered trucks.

The marine sector uses 3.8 million barrels of fuel per day and the fact that the new regulation calls for a switch to fuel with a lower sulfur content will increase demand which could result in price increases for the rest of the transportation sector.

And while there isn't much we can do to stop fuel prices from rising, we can take steps to mitigate the impact of any price increase.

The first step is look at your vehicle specs. Are you spec’ing trucks for fuel economy? As much as 50% of a truck’s fuel goes toward reducing aerodynamic drag. Depending on the aerodynamic devices you spec, you can see a 1% to 10% reduction in fuel consumption, according to the North American Council for Freight Efficiency. It is well known that a tire underinflated by 10% can increase rolling resistance by as much as 20%. Spec’ing aerodynamic devices and tire pressure monitoring/inflation systems are two good ways to save fuel.

The next step is to take a close look at your routing. Are you optimizing routes to make them as efficient as possible? Talk with your customers about the possibility of moving delivery times. While that might not always be possible, it is certainly worth investigating, especially if you have not reviewed routing in several years. Customers’ needs may have changed, you may have added or deleted certain customers from certain routes, and you may be surprised to find that some customers can adjust their delivery windows.

We’ve all heard that old cliché, “Nothing is more expensive than hauling air.”  Eliminating empty backhauls when possible will result in better overhaul freight efficiency.

Your drivers also have a big impact on fuel efficiency. Industry sources say drivers’ impact on fuel economy is between 20% and 30%. We are fortunate today to have an array of data about driver behavior that can be used to coach drivers into driving with fuel efficiency in mind. Look at things like speeding, percent of time in idle, hard braking, time in cruise, etc. Depending on what you find, you can tailor training to focus on areas that need improvement. Also consider offering incentives to drivers who achieve the fuel economy goals you have set.

While fleets my not be able to do much to reduce the cost of fuel, they can take steps to ensure they are getting the most out of a gallon of diesel, no matter what it costs.

About the Author

Joseph Evangelist

Joseph is a seasoned transportation executive with domestic and international experience in sales, operations, mergers and acquisition with heavy emphasis on post-acquisition assimilation planning to maximize new growth and business combination opportunities.

He joined Transervice in 2007 and currently serves as executive vice president with sales, operations and staff responsibilities. He is also heavily involved in new business development and account management.

Previously he was president of LLT International, Inc., an international transportation consulting firm with operations in the U.S. and the Far East. He oversaw the maintenance and fleet management of a 2,000-vehicle cement distribution fleet in Indonesia.

Joseph was also president and CEO of Lend Lease Trucks Inc., a truck rental, leasing and dedicated carriage firm with operations throughout the U.S.

He also was vice president/general manager of The Hertz Corporation – Truck Division, a subsidiary of The Hertz Corp. While there he participated in the acquisition and successful integration of the Canadian licensee operations.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Proactive Fuel Risk Management Guide

Download this informative guide to explore innovative techniques to prevent fuel fraud and misuse before it happens. Understand how to save 11% or more in fuel-related costs while...

Going Mobile: Guide To Starting A Heavy-Duty Repair Shop

Discover if starting a heavy-duty mobile repair business is right for you. Learn the ins and outs of licensing, building, and marketing your mobile repair shop.

Increase your fleet’s fuel economy with the right lubricants

See how Mobil Delvac™ oils boosted GP Transco's fleet.

Career Minded

The Peterbilt Technician Institute teaches you the skills needed for a lucrative and fulfilling career, transforming students into certified diesel technicians. Maximize your ...