What Influences Transportation Costs?

Posted by Marian
Truck, Delivery, Lorrie, Transportation, Vehicle

If you can save on transportation costs, that would impact the pricing of the rest of the supply chain. It goes without saying, that the main factor affecting transport costs is fuel. While we do not influence the price of fuel, we can reduce its consumption.

In addition, transportation costs include insurance, taxes, tolls, employee salaries, maintenance, and vehicle use of a specific value. It is worth analyzing your transportation expenses to see if they can be reduced. Fuel costs can account for up to 50% of a company’s expenses

Fuel costs are related to the current prices on the market. Fuel prices have increased significantly over the past few years, and the near future does not look optimistic either. For example, raising taxes on energy products causes fuel and coal prices to rise.

How to Save on Fuel Consumption

Speedometer, Top Speed, Automobile, Barometer, Car

Optimize Your Driving Style

One way to reduce fuel consumption is to optimize the driving style—frequent acceleration and braking cause more fuel consumption. However, eco-driving training is available on the market, significantly reducing fuel consumption. The exact form of competition results in greater awareness while driving. Many companies use this as an additional bonus system.

Check the Overall Condition of Your Vehicles

Another matter is a regular examination of the technical condition of your vehicles. Servicing allows you to catch any possible faults. An efficient car usually means lower fuel consumption, and the lack of frequent repairs means no downtime in transportation.

Furthermore, increased fuel costs can be caused by, for example, faulty brakes or damaged tires. Under-inflated tires can result in higher fuel consumption. In terms of annual transports, it is easy to calculate how much money under-inflated tires can cost. Drivers should also check their tire pressure for another reason: too low pressure increases tire wear, which leads to additional costs.

Select the Best Routes

Choosing the most optimal routes also helps to reduce fuel costs. The shortest route will not always be the best choice, while on a longer one, the driver can maintain a constant speed. It is worth looking at different driving options, and sometimes it pays off to choose a different route for which there is no additional toll. Use route optimization tools available on the market to help you plan your transportation with the best possible course.

Find a Suitable Load

Reducing empty runs can help generate more significant savings. For this purpose, it is worth using exchanges and order handling platforms that let you quickly find a suitable load.

If you are driving empty or with a semi-trailer partially loaded, it is worth checking if a load on the route can be added. An additional benefit of using this type of system is the possibility of gaining regular business partners and more orders for transportation.

Staying Within Limits

Another reason may be trivial, as everyone wants to avoid a fine, but it is worth considering. Penalties vary and, in cases of high fraud, can be severe for the carrier. The most common sins of transport companies are exceeded driver’s hours, overloaded car or permissible axle load.

Knowingly and frequently exceeding these limits is dangerous and affects the overall market rate. For example, a load planning application can help you distribute cargo correctly, considering the permitted gross weight and axle loads.

Keeping Company Expenses at Bay

Auto Financing, Financing, Interest Charges, Credit

Do not forget that time is money, so consider activities that can be done faster and more efficiently. For example, loading a truck with many different loads will take much less time if the driver or storekeeper has a loading plan that avoids mistakes or situations where goods will not fit on a given vehicle.

It is a good idea to take meticulous measurements of fuel consumption to see when there is a chance to reduce the related costs. As a result, it is possible to implement solutions that will reduce fuel consumption and, thus, its expenses.

Leave a Reply