We all know that fleet fueling prices have gone up. We see it everyday at the pump. We feel it in our wallets. But why? Is it because of supply and demand? Is it because of volatility in the Middle East? Just what exactly is driving diesel and gasoline prices higher? It's simple. The way this fleet fueling professional sees it, it's all because of a four-letter word that begins with F.... Read More

The answer should be both. You and your fuel program should be working together in harmony. However, with diesel fuel prices going up and down like a yo-yo, and your work schedule getting busier, not easier, it probably feels like neither is winning. And, why?

Perhaps you feel helpless against rising fuel costs. And, in fact, they are out of your control. Even minor fluctuations in pricing can have a big impact on your bottom line. Your focus on crude oil and gasoline is magnified because you have a daily need for them. Gasoline is powering your cars and diesel fuel is moving your trucks down the highway. However, keep in mind, prices on all commodities change constantly. There are so many being traded each and everyday that you don’t worry about, let alone even heard of. When’s the last time you checked out the current trading price for pork bellies? Well, don’t bother. Focus instead on putting a good fleet fuel management program in place that will gain you control, cost savings and less worry.... Read More

We’ve heard the phrase, do more with less, right? But surely, where fuel is concerned, more production requires more fuel. Simple logic, isn’t it?  Well, like everything today, nothing is simple and when you look at new opportunities and new technology, it’s now a realistic idea to get more productivity out of less fuel. Here’s what I mean.... Read More

"If past history was all there was to the game, the richest people would be librarians." - Warren Buffett

Pricing freight without knowing the costs and operational details of the business creates unnecessary risk. You can't rationally provide a rate for a piece of business unless you understand what you are being asked to do. Here is a checklist of information to obtain and consider when rating a lane.... Read More

It's really hard to believe that diesel fuel prices and gas prices are falling, especially if your local gas station hasn't lowered prices yet. Ok, I realize that MOST of us have not seen the lower fleet fueling prices at the pump yet. This is basically because most retail locations are taking their time lowering their prices—and your fueling costs. But yesterday, in the fairly small town where I live, the price for gas at a low-cost retail station was down to $3.93 a gallon. A half mile away it was $4.09 a gallon, and half mile in the other direction it was $4.19 a gallon. Knowing the fueling market as well as I do I recognize that even that low-cost retail station is making a nice margin. The others are knocking it out of the park, but that isn't good for consumers. Keep watching, prices will drop down near you soon, fueling costs will get better, trust me.... Read More

Yes, crude oil had its biggest weekly loss in terms of dollars since 1983. 5 straight days of loss has brought crude oil down to a Friday close of $97.47 a barrel. You might ask yourself why are my diesel fuel prices still high? It will take a few weeks for it to hit the retail market. For the week crude lost almost $17 a barrel. For every dollar crude goes up or down it relates close to 3 cents a gallon for diesel fuel prices or gas prices. I hope a light bulb is going off in your head right now because yes a $17 loss to the barrel means diesel fuel prices should go down 51 cents per gallon and the same is true with gas.... Read More

Just Another Cycle, or a New Beginning? Part Two

by Richard Mikes, PhD & Lana Batts, Transport Capital Partners, LLC

New Equipment Cost Escalation

Annual cost increases for equipment in the last two decades has been around 7% per year, with most of the increases incurred in the last decade being due to EPA mandated engine changes adding approximately $15,000 per truck, coupled with poorer fuel economy and increased maintenance costs. Clearly, someone must pay the equipment bill as freight moves on truck assets owned by someone. Obviously brokers do not want to own, and even some carriers don't either, preferring instead to use independent contractors. Without adequate compensation for their capital or labor, contractors have been fleeing the industry. The economic returns to capital must be there or capital will not flow to the industry long term. This was evidenced by the fleet downsizing of the last few years. Lenders who have been 'burned' by repossessions and bankruptcies are not likely to return without seeing solid earnings evidence. The recent upward trend in Class 8 purchases is not to expand but rather to replace as carriers with an older fleet face mounting maintenance costs and a looming driver shortage.... Read More

Just Another Cycle, or a New Beginning? Part One

by Richard Mikes, PhD & Lana Batts, Transport Capital Partners, LLC

Not since Deregulation in 1981 has the trucking industry faced the degree of growing demand coupled with unbridled opportunity, over-written with the degree of uncertainty of new regulations, rising costs and an economy emerging from a recession. Transport Capital Surveys over the past two years clearly show a re-born cautious optimism.... Read More

In certain applications Intermodal transportation, the combination and integration of at least 2 transport modes, can be a cost effective and environmentally friendly complement to road transport for the handling of shipped goods. With diesel prices having increased y/y by over 33% to $3.908 a US gallon, the intermodal option is being considered more frequently, but at what price?... Read More