Impact on Fuel Efficiency: Controlling Factors You Should Understand
In the world of heavy hauling, effective fuel management becomes even more crucial. This is because filling up 120 gallons per stop, twice a week, results in a weekly consumption of 240 gallons.
To improve fuel efficiency, it's essential to consider factors such as the average load weight, typical terrain, gear ratio, and cruise speed. By doing so, companies can optimise their fuel expenses, a controllable aspect of their operations.
In the freight industry, the winner isn't necessarily the one with the best rate, but the one with the least waste. Small carriers, in particular, are losing thousands of dollars each month due to uncontrolled fuel expenses.
Annually, the difference in cost between trucks with different MPG can exceed $19,000 per truck. This underscores the financial impact of inefficient fuel management.
Recent years have seen small and medium-sized enterprises (SMEs) in the transport and logistics sector suffer enormous losses due to fuel costs. These losses are largely attributed to rising energy and fuel prices, high market volatility, and a lack of international economic impulses.
However, successful fleets have found ways to navigate these challenges. They plan routes around the cheapest fuel prices, use cost-per-gallon alerts, log average cost per mile in fuel, evaluate weekly fuel summary reports, and tie fuel burn to driver bonuses.
One such successful operator, Operator B, uses a RTS fuel card and enjoys an average discount of $0.45 off retail. Operator B also focuses on improving weekly MPG, currently averaging 7.4+.
Fuel management is not just a discipline (station selection) but also a habit (fuel burn). It serves as a scoreboard for the smart running of a business, especially in a volatile market where it acts as the first line of defense.
Moreover, fuel management can be a game-changer for small fleets. Those that are successful in managing fuel expenses treat it as a strategy, not a sunk cost.
For instance, idling for 8 hours per night can result in 56 gallons of fuel wasted per week, equating to $212 at $3.79 per gallon. Small fleets that address such issues can significantly reduce their fuel expenses.
Additives or fuel treatment can be beneficial only if a fleet is already maximising pump price and fuel burn rate. Therefore, if a company cannot manage fuel expenses effectively, individuals can start by taking steps like minimising idling times and optimising cruising speeds.
In conclusion, smart fuel management is a crucial aspect for small freight companies aiming to thrive in today's market. By focusing on station selection, fuel burn habits, and optimising operational factors, these companies can reduce fuel expenses and improve their competitive ability and profitability.
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