Combat rising fleet costs using fleet management solutions

Fuel and other costs continued to get more expensive for truckers the last few years, and that trend shows no signs of slowing down heading into 2023. According to the most recent data from the American Transportation Research Institute (ATRI), 2021 was the costliest year ever in trucking, in terms of operational costs. And while the official statistics for 2022 might not be out yet, it’s safe to expect that costs were even higher last year.

Utilizing real-world data that reflected hundreds of thousands of trucks and more than 14.6 billion miles traveled, the ATRI found that the cost of trucking jumped to $1.855 per mile.¹ Data collection for the most recent report, which reflects 2021 data, began in March 2022 and concluded in June 2022. The final report was released in August 2022.

Not surprisingly, fuel saw the largest cost increase. But even when fuel expenses are removed, overall costs still increased since nearly every other cost grew or remained constant. Supply chain challenges also meant that truck and trailer purchases, as well as repair and maintenance costs, hit record highs in 2021.¹ And with no end in sight for many of these challenges, businesses and fleet managers will be forced to have a laser focus on reducing costs.

Saving on fuel costs

With truckers and trucking companies facing higher costs, finding opportunities to save is more important than ever. Implementing a fleet management solution can provide valuable insights into areas where fleet managers can save money, especially on fuel.

For example, a telematics solution can allow fleets to monitor driving behaviors and vehicle functions that have a direct link to fuel efficiency, such as:

• Speed: Driving faster uses more fuel, driving up costs. Fleet management software helps you monitor if drivers are exceeding posted speed limits, opening opportunities for driver training.
• Idling: Put simply, idling wastes fuel. Several companies use telematics to monitor and cut down on idling time, which saves on fuel.
• Routing: Shorter routes are more efficient and cut down on fuel usage. Fleet management technology allows dispatchers to identify the most efficient routes for drivers.
• Maintenance: Regular maintenance can lower fuel costs over time. A fleet management solution can provide proactive alerts when vehicles are due for maintenance. This has the added benefit of helping to reduce unexpected vehicle downtime and costly repairs. 

Download our 5 ways to reduce fuel cost eBook for more tips on increasing fleet fuel efficiency.

Increasing security

With the cost of vehicles and trailers going up, protecting those assets against theft becomes even more important. Fleet management technology can give peace of mind by providing near real-time visibility into vehicle location, which can help deter theft and recover vehicles faster if it occurs.

• Geofencing: Fleet managers can establish geofences and set up alerts for if a vehicle leaves an authorized area, letting them know the moment a potential theft occurs. 
• Monitor from anywhere: With Verizon Connect, users can get alerts on their desktop or have them sent straight to their smartphone, letting fleet managers react to problems faster.
• Vehicle recovery: In the unfortunate event a theft does occur, the GPS monitoring can help assist law enforcement by giving them an exact location of the vehicle, speeding up recovery time.

Saving money with Verizon Connect

With costs going up across the board, many trucking companies may be reluctant to tack on an additional expense. But as our customers will tell you, the Verizon Connect platform provides valuable insights that can help identify significant savings opportunities. 

By improving driver behavior and reducing wasteful practices like vehicle idling and inefficient routing, companies can save on fuel. Proactive alerts let fleet managers stay on top of maintenance before they become more costly repairs. And with GPS monitoring, fleets can help deter theft and improve vehicle recovery times if it does occur –helping to prevent expensive incidents.

¹ An Analysis of the Operational Costs of Trucking: 2022 Update https://truckingresearch.org/2022/08/10/an-analysis-of-the-operational-costs-of-trucking-2022-update/