For businesses that rely on their fleets for generating income, the reality of ever-increasing fuel prices is having a major impact on daily operations. It makes it very hard to plan ahead to ensure the survival of the firm. That is why an increasing number of fleets are switching to telematics and fleet management solutions to track and reduce fuel consumption.
The Impact Of Fuel Consumption On Running Costs
According to data published by the American Transportation Research Institute in its 2020 Analysis of the Operational Costs of Trucking study, fuel on average represents 24% of a modern fleet’s MOC or marginal operating costs. To express this in a different way: if the fuel price increases by $0.50 per gallon, it will increase the running costs of an average truck by no less than $7,000 per year. If you have a fleet of 15 trucks, that equates to more than $100,000 a year.
The Increasing Importance Of Sustainability
One more reason to take fuel consumption very seriously is that sustainability has become very important when shippers have to make a decision about the carriers they partner with. More and more of them want to know what a carrier is doing to reduce its fleet’s fuel consumption before accepting it as part of the team.
It’s not difficult to understand why. The transport industry is one of the 6 biggest sources of dangerous greenhouse gasses in the world and accounts for around 28.9% of all global emissions. And there is a direct link between the amount of carbon dioxide a vehicle emits and its fuel consumption.
To quote just one example: according to EPA data, the average passenger vehicle emits around 4.6 metric tons of carbon dioxide over the course of a year. That equates to 404 grams of carbon dioxide for every mile driven. The disturbing reality is, however, that the average freight truck emits no less than 161.8 grams of carbon dioxide when transporting cargo weighing one ton for one mile. A truck carrying 10 tons will, therefore, emit 1.618 kg of CO2 for every mile driven.
Against this background, a company that is able to show that it has a successful program in place to reduce fuel consumption will undoubtedly have a better chance of getting (and keeping) business.
Improving Fuel Consumption Benefits The Community
The reason why we can safely say this is because a drop in air pollution from the transportation industry helps to improve air quality for everyone who finds themselves on or near major roads all day long. Breathing less polluted air will reduce their likelihood of getting sick and could eventually help them to lead longer, healthier lives.
Reducing Fuel Consumption Can Extend The Lifespan Of Your Vehicles
A fleet that uses less fuel also enjoys another benefit: it will help to make the existing vehicles last longer and experience fewer breakdowns. One of the biggest reasons why a fleet might experience excessive fuel consumption is because the drivers are driving unnecessarily long distances. By properly planning trips, these distances can often be reduced significantly. This will not only reduce fuel usage, but it will also reduce the wear and tear on the vehicles in your fleet, cut down on repair costs, and extend the lifetime of the vehicles.
7 Things That Can Help Reduce Your Fleet’s Fuel Consumption
– Optimize vehicle speed
– Start using tires with a lower rolling resistance
– Use tools that will help cut down idle time
– Educate drivers on fuel savings techniques and reward those who follow them
– Make sure that vehicles and equipment are properly maintained
– Use the right trailer aerodynamics
– Make sure that you use the correct axle configurations
Want to learn more tips for managing your fleet? Let Efficiency Enterprises help! Contact Us today!