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Fuelling Business When Gas Prices are High

Rising gas prices are unwelcome news for every vehicle owner, but they are especially a cause for concern for businesses that use trucks to transport g...

Freddie Pierce
|Jun 6|magazine7 min read

Rising gas prices are unwelcome news for every vehicle owner, but they are especially a cause for concern for businesses that use trucks to transport goods.

The trucking industry has always been competitive and saturated, and the increase in gas prices is suffocating many trucking companies, forcing some of them to close down.

However, there are measures that trucking companies can take to overcome the rising costs of fuel.

Understanding the Fuel Costs of Trucking Businesses

Big rigs generally have a fuel economy rating of about seven miles per gallon, and they may need more than 140 gallons of fuel a day to complete their routes.

In order to travel a distance of 1,500 miles, these vehicles need between 250 and 300 gallons of fuel. With diesel costing almost $4.00 per gallon in May 2013, trucking companies have to pay close to $1,200 for each of their trucks to travel that distance.

How Rising Gas Prices Affect Trucking Businesses

In order to keep their businesses profitable, many trucking companies have to raise their trucking rates to keep up with the rising costs of fuel.

In 2012, the general truck freight rate in the United States was about $2.55 per mile, which was $0.65 higher than in 2008.

Rising truck freight rates mean customers are starting to look for other more affordable shipping options, resulting in a loss of business opportunities for trucking companies.

Higher shipping costs have also influenced the types of goods that are transported by trucking companies, as many companies have to start shipping goods that they are not used to shipping in order to survive.

Additionally, an increase in gas prices can lead to a higher risk of accidents, as some companies try to reduce their shipping costs by investing less in safety.

What are Trucking Companies Doing to Overcome Rising Gas Prices?

Unlike ordinary vehicle owners, trucking companies cannot reduce vehicle mileage to save on fuel costs. Neither can they charge overly high trucking rates.

Many companies are trying to reduce their fuel costs by instructing their drivers to avoid fast accelerations, maintain the right tyre pressure and reduce idle time. Some companies are also implementing the use of GPS tracking systems to enable their drivers to determine the most efficient routes to take to reach their destinations.

Trucking companies can make their trucks more fuel-efficient by removing unnecessary accessories such as chrome pieces to reduce weight, installing aerodynamic features to minimize air friction and getting their trucks inspected regularly to ensure that they are in a good condition. Companies that are planning to purchase new trucks can save on fuel costs by opting for hybrid trucks.

While nothing can be done to prevent gas prices from rising, trucking companies can follow the tips provided in this article to reduce their fuel costs and increase their profit margins significantly.

About the Author: John McMalcolm is a freelance writer who writes on a wide variety of topics, ranging from business management to doctor reputation management.