How to combat rising trucking costs
As trucking costs continue to climb, fleets and drivers can turn to tools and services already on the market to help keep expenses in check and maintain profitability. For the second year in a row, trucking costs are rising. In the same period and continuing today, declining freight volumes and excess carrying capacity have compounded the impact of higher trucking costs on trucking operations.
In effect, lower rates and fewer hauls mean less revenue to offset necessary expenses. What can be done? While truckers can have little impact on freight volumes or rates? It’s probably no surprise that diesel price increases made up most of the jump in costs.
Fuel optimization tools that detail the best prices and volumes to purchase over a given route. Faced with either fixed loan or lease costs or rising variable rates, fleets, and drivers have few alternatives. However, options for reducing these costs may be available from lenders, including negotiating new lease payment plans or refinancing loans.
A tried-and-true approach is to keep up on routine maintenance, which not only brings efficiency gains but can also help prevent larger, more expensive equipment problems. Maintaining recommended tire pressure also ensures proper wear and can improve fuel efficiency.
Choose an insurance plan with a higher deductible. You can pay a lower premium by agreeing to pay more in the event of an accident. Look for insurance discounts. Pay your premium annually. Insurers will often give you a discount—sometimes as much as 20%—if you can pay for insurance in a lump sum rather than spreading payments out monthly. Today, significant forces outside of any fleet or driver’s control affect their profitability, making it even more crucial to take advantage of cost-saving strategies. Fortunately, there are many services, tools, and practices that can help fleets and drivers. Taking an active role in finding and using those solutions is one way to lower costs and maintain profitability.
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