Moving Words – Conserving Fuel

Timothy Brady

“You’ve done it before and you can do it now. See the positive possibilities. Redirect the substantial energy of your frustration and turn it into positive, effective, unstoppable determination.” –  Ralph Marston

It sounds like an old vinyl record with a scratch, but the one area you can make the greatest impact in improving your bottom line is how your operation controls fuel costs. It’s by far your highest operating cost but it can be controlled. In this post I’m going to cover ideas; some I’m sure you’ve heard before, but it never hurts to review them from time to time. And I might just have something you’ve not thought of previously.

The future of their trucking operations is the concern of every moving company today as fuel prices continue to go up like an Elon Musk rocket with prices per gallon at histrionically  high levels. However, with a bit of effort, fortitude and an ounce or two of tenacity, each moving company owner can turn this plight into an opportunity for more revenue and greater profits.

To begin the process you must have the determination to look at the way you’re currently operating your trucks. It’s imperative you decrease the fuel consumption as quickly as possible. An argument can be brought that ‘time is money and miles driven takes time, so the faster my trucks travel the more money I can generate.’ While this sounds good in theory, in real-world application it doesn’t fly. All it will do is put you into the hammer lane to eventual financial failure. This is critical mass, when the energy expended exceeds the energy required to accomplish a particular task.

In trucker-speak, this means when the cost per gallon of fuel reaches a certain plateau and above, the fuel required to attain a greater truck speed exceeds the usual costs in making a profit. In other words, “Speed Kills Profits.”  Having your drivers reduce their cruising speeds to between 55-60mph will save you thousands of dollars each year. Note: It’s very important for each driver and you, as the company owner, to know the “sweet spot” on each truck in your operation. The sweet spot is the gear, engine speed (rpms) and road speed which uses the least amount of fuel. It’s possible that a particular truck will get better fuel mileage at 63mph than it would at 58mph. Any good mechanic with a dyno and the specific truck’s specs should be able to tell you the best rpm and gear to minimize your fuel consumption.

Add to this a diligent maintenance program with emphasis on cutting resistance and friction: everything from greasing at proper intervals, correctly scheduled oil changes, overhead service; to correct tire pressure and alignment; and rear axles, transmission, frame, and suspension maintenance. As I stated in ‘Driven 4 Profits An Owner/Operator’s Guide to Keeping More of the Money You Earn’ (Tim Brady and Esta Klatzkin, E.A. Write Up The Road Publishing, 2003): “This machine (your truck), like all machines, has maintenance requirements that Will Not Be Denied! If they are ignored, there will be a significant price to pay for that arrogance. The owner of the truck is the one who is ultimately accountable for the results of the P.M. Schedule Program. The person responsible for ignoring those maintenance requirements is responsible for any subsequent and catastrophic failures that result and the financial consequences.”

This statement is truer today than at any other time in my trucking career.

Here are some more activities for improving your bottom line by reducing fuel consumption:

1. Have your drivers cut down their idling. The obvious point here is, if the driver’s not in his truck—turn the engine off. Try asking them to not run your trucks when the outside temperature is between 50° and 75°. Consider providing a quality arctic sleeping bag, 12v electric blankets, and those charcoal/sawdust based 8-hour warming packets for each driver during colder weather. Look into installing APUs in each tractor unit. (I have had APUs on all of the trucks I’ve owned since 1992 and can tell you the benefit to both driver comfort and fuel savings is significant. I wouldn’t run an OTR truck without one.)
2. Investigate any new fuel-saving technology, but be careful not to be fooled by the people attempting to take advantage of unsuspecting truckers and companies with bogus pills and items that connect to fuel lines. (Look for SAE or TMC certification on any device or additive to be sure it will: one, work, and two, not damage the truck.)
3. Shop for your fuel before you need it. If possible, you should go up onto the major truck stop internet sites each day before your trucks roll. See what fuel is costing along your route and plan a purchasing strategy for that day. With the wild increases in fuel prices today, this is necessary. You may need to adjust your plan each day.
4. Optimize the routes your trucks take on each load. This is not necessarily the shortest; it’s the shortest with the least number of obstacles that slow you down or stop you along the way (traffic lights, turns, mountains, construction, large cities with near-gridlock, rush hours, etc.).As an example, avoid large city rush hours with stop-and-go traffic. The more consistent the speed of your trucks, the better the fuel mileage.
5. Lead by example, so to convince other truckers to conserve their fuel! The more people who are conserving fuel the lower the price will be, due to the laws of supply and demand. Even if the price doesn’t go down, conservation should at least help to stabilize fuel prices. And stabilized fuel prices, no matter what their level, make for easier planning and adjusting your hauling rates to be fair for all concerned, yet still profitable for you and your van operators.
   
   

Keep your eyes and ears peeled for increases in available business that’s in line with the cost of fuel. Show your tenacity by taking advantage of opportunities: As shipments become more available and fuel prices are on the rise, it’s the best time to increase your freight rates. This is especially true when fuel prices increase along with the news coverage it generates; if someone doesn’t know it’s going to affect shipping costs, they’re living on a mountain in Tibet. Shippers, corporate customers, relocation companies and consumers will be expecting an increase, but they won’t offer one to you – you’ll need to ask.

Just like any other good business practice, there’s a strategy to conserving fuel and holding down costs. And a well-thought-out strategy means less stress for you and better profits for your company. Go figure.

“Conservation is a state of harmony between men and land.” –  Aldo Leopold