June 28, 2018

Rising fuel prices: How to stay efficient and profitable

Rising fuel prices - How to stay efficient and profitable

Fuel-related expenditures represent a huge portion of a fleet’s overall expenses. According to a report by the American Transport Research Institute, fuel cost makes up 30 to 40 percent of a fleet’s cost per mile.

Moreover, because of the rising fuel prices, trucking companies, as well as owner-operators, often find it difficult to cut down fuel expenditures.

Statistics from the U.S. Bureau of Labor Statistics state that the prices for all types of gasoline have increased by 82.65 percent from the year 2000 to 2018 — an average inflation rate of 3.40 percent per year.

During the week ending April 16, 2018, fuel prices jumped up by 6.1 percent across the country, which pushed it to its highest point of 2018 and the highest since the beginning of 2015.

The rising fuel prices directly affect a carrier’s profitability and the company’s bottom line. Effectively managing fuel costs and minimizing expenditures, however, can help you improve the financial health of your business.

In this blog post, we share a few tips that carriers can use to minimize fuel expenditures and become more efficient and profitable.

1. Tracking excessive idling

It is estimated that for a truck that consumes $70,000 worth of fuel, approximately $5,600 is wasted on idling. By identifying drivers who idle for too long or too frequently, you can significantly reduce the amount of fuel you use every month.

The KeepTruckin ELD Plus has an idle-time tracking feature that allows you to track excessive idling across your fleet. You can identify drivers who idle frequently and start coaching them. With the KeepTruckin ELD Plus, you can also compare vehicle utilization rates across terminal or driver groups.

Idle-time tracking -- Utilization rates

2. Vehicle maintenance

Vehicle maintenance issues may affect the performance of the vehicle and fuel efficiency. Low tire pressure, in particular, is a major cause of increased fuel consumption in motor vehicles.

Based on data from the U.S. Department of Energy, a reduction of 1 pound per square inch (PSI) in tire pressure reduces the fuel efficiency of vehicles by as much as 0.3 percent.

The KeepTruckin ELD automatically monitors fault codes through its direct connection to on-board vehicle diagnostics. If an issue occurs, it is instantly displayed on the KeepTruckin Dashboard, and fleet managers receive a fault code notification.

Fault codes - KeepTruckin ELD

By staying on top of vehicle health, you can improve fuel efficiency and reduce operational cost.

3. Limit speeding

Speeding is another driving behavior that can affect fuel efficiency. On average, increasing driving speed from 65 to 70 miles per hour will increase fuel consumption by 9 percent. Apart from poor fuel efficiency, speeding also increases the likelihood of road accidents.

By keeping an eye on the average speed, you can improve fuel efficiency and increase the safety of your fleet.

The KeepTruckin ELD alerts fleet managers in case of speeding or other unsafe driving behaviors, such as hard braking, hard cornering, and excessive acceleration. With the help of safety scores, you can identify drivers who require immediate coaching.

Doing so would not only improve the safety of your fleet, but it will also improve fuel efficiency and profitability.

Driver scorecards - safety scores in the KeepTruckin ELD Dashboard

4. Optimizing routes

By planning the best possible routes, you can significantly reduce the amount of fuel your drivers use.

The KeepTruckin intuitive dashboard allows fleet managers to track your assets, optimize fleet operations, and plan effectively with real-time GPS and hours-of-service availability.

With proper planning and route optimization, fleets can improve fuel efficiency and reduce expenditures.

Improve fuel efficiency with KeepTruckin

The KeepTruckin ELD is not only FMCSA-compliant, but it is also packed with powerful fleet management features that help you improve fuel efficiency, reduce administrative burden, minimize expenditures, and increase profitability.

With the latest technology, it is finally possible for fleets to improve fuel efficiency and stay profitable amid rising fuel prices.

Order your KeepTruckin ELD now in just a few clicks.

If you have any questions, give us a call at 855-434-ELOG or send us an email at support@keeptruckin.com. Ou 24/7 customer support team is always available to help you.

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