The cost of fuel is a variable expense for trucking companies in the United States. The price at the pump has been swinging back and forth for years, if not decades, without any sign of leveling off. In the early 2000s, the cost of fuel was prohibitive for both commercial and personal use, in part due to conflicts elsewhere in the world, and also due to price gouging. Prices went back down again after 2009, with mild fluctuation. In early 2020, during the COVID pandemic, fuel purchases plummeted along with the price because hardly anyone was driving, except for carriers. This resulted in companies around the world closing fuel production so that there was not a surplus. Now in 2022, with international conflicts once again involving oil-producing nations, as well as looming inflation, prices at the pump are skyrocketing, and trucking companies are looking for new ways to cut the cost of fuel without sacrificing productivity.
Zero emissions have been one of the objectives put forth by the FMCSA with various target dates given. Electric vehicles, EVs with solar-powered batteries, and other alternative energy trucks are currently being manufactured by Volvo, Mercedes, and other companies. There are even a few companies that are making conversion kits to turn diesel-powered trucks into electric vehicles so carriers do not have to buy totally new fleets. Some pushback is from the upfront cost of electric trucks. If a carrier burns through 20,000 gallons of fuel every year, then they are spending – with a national average of around $4/gallon – $80,000. This does not take into account that we could see prices above $5/gallon by the summer of 2022. This may just be a variable cost for large fleets and part of overhead, but for smaller fleets, fuel expenses can really impact cash flow. Redirecting that capital into electric vehicles saves money in the long run. It not only helps trucking companies achieve zero emissions and lower fuel costs, but it helps them break their dependence on fuel with astronomical prices.
Fuel Discount Programs
Fuel discount programs have been around for quite some time, and each one has its own benefits. Getting the best pricing possible at the pump and for wholesale purchases can cut the cost of fuel tremendously. Single Point Capital offers a fuel discount program that also doubles as a line of credit. Carriers get great discounts, and low rates and cards can be used wherever MasterCard is accepted. The discount program can be used at Flying J, Speedway, and over 7,000 locations throughout the US, as well as for wholesale purchases. Other benefits include discounts on tires, maintenance, and even the ability to save time at CAT Scale stations. Fuel discount programs are a great way to cut costs at the pump, plus they offer a wide range of additional benefits.
Trucking companies that make fuel efficiency part of their internal goals can really cut overhead costs. There are apps that constantly update fuel prices and integrate with the GPS on smartphones, so truckers can always find the best prices when they are out on the road. Instead of making fuel efficiency an additional responsibility, trucking companies turn the goal into a friendly contest. The drivers who demonstrate the lowest spending on fuel and longest road time get a prize, be it monetary or something else. If the company, as a whole, manages to improve fuel efficiency, there should be some sort of reward that everyone can enjoy. Encourage drivers to share their fuel efficiency tips with others and make the mission a team effort. That way, everyone is on board, and both new and seasoned drivers have the incentive to cut fuel costs, especially if they understand that they will also benefit from the money the company saves.
Start Lowering Fuel Costs Today Single Point Capital offers a comprehensive fuel discount program to trucking companies that are enrolled in our freight factoring services. We help carriers throughout the United States save big at truck stops and through wholesale purchases. If you want to start cutting fuel costs to stay ahead of inflation and rising prices, contact Single Point Capital today.