I recently saw a report that was based on a survey of shippers and carriers. They were asked about their priorities as they relate to shipping their goods. For more than half of the shippers (57%) responding to the survey, cost is the primary consideration when partnering with a carrier. On-time pickup, delivery reliability, and a favorable shipment schedule were the other key factors that shippers considered when selecting a carrier.
I believe there are several steps fleets can take to address shippers’ cost concerns while remaining profitable. Improving fuel economy is one effective way for fleets to reduce costs and position themselves to pass some of the savings on to the shippers. Regardless of fuel costs, fuel still accounts for a significant percentage of a fleet’s operating cost.
The good news is that not all steps a fleet can take to improve fuel economy require a significant investment. In some cases, aside from a time commitment, they are free. I am, of course, referring to electronic engine parameters. Various engine parameters can be adjusted to enhance fuel economy, and fleets can achieve fuel economy gains of 5% to 8%, depending on how the engine parameters were previously configured. Parameters can be used to control speed at the pedal and at cruise, and there are also parameters that limit idling. Both speed and idling have a big impact on fuel economy.
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Another way to improve fuel economy is to train your drivers to operate their vehicles with fuel economy in mind. It is believed that drivers still have a significant impact on a truck’s fuel economy. You can encourage a little friendly competition among drivers to see who can consistently get the best mpg.
Of course, there are also investments fleets can make in fuel efficiency technologies, including aerodynamic devices for both the tractor and the trailer. While there is a cost for these items, they pay big dividends in fuel economy improvements. Tire choice and tire pressure monitoring systems also play a role in improving fuel economy.
If you have not checked out the profile of Albert Transport, a participant in this year’s Run on Less – Messy Middle, I encourage you to do so. Be sure to watch the video in which Henry Albert discusses why fuel economy is important to him and then walks around his vehicle, pointing out all the modifications he has made to improve fuel economy. And remember, Albert is consistently seeing mpg numbers north of 10 mpg with a 2022 model year truck.
It's no surprise that cost is a significant factor when a shipper chooses a fleet. But it’s also not a big surprise that fleets want to operate as efficiently as possible so they can reduce costs. Sometimes a portion of those cost savings can be shared with the shipper, and sometimes they can go right to the fleet’s bottom line. And that’s a good thing for both parties.
