Fuel is the largest variable expense for most carriers. And most carriers manage it like weather — something that happens to them rather than something they control.
That mindset is expensive. A 5% improvement in fuel efficiency across a 30-truck fleet running 100,000 miles per truck annually, at $4.00 per gallon diesel, saves over $85,000 per year. That is not optimization at the margins. That is a meaningful improvement to the bottom line.
Fuel is not just an expense. It is a strategy.
Route Planning for Fuel Efficiency
The shortest route is not always the cheapest route. Fuel-optimized routing considers:
- Terrain. Mountain grades consume dramatically more fuel. A route that adds 30 miles but avoids a major grade crossing can save more in fuel than it costs in time.
- Traffic patterns. Stop-and-go traffic burns fuel at two to three times the rate of highway cruising. Timing departures to avoid congestion saves fuel and time.
- Speed. Fuel economy drops significantly above 60 mph. A truck running 65 mph uses roughly 15% more fuel than the same truck at 58 mph. Over 100,000 miles per year, that difference is thousands of gallons.
- Fuel stop optimization. Planning fuel stops based on price data rather than convenience can save $0.10 to $0.50 per gallon. Across a fleet, that adds up fast.
Fuel Card Analytics
Most carriers use fuel cards. Fewer actually analyze the data those cards generate. Fuel card analytics reveal:
- Purchase patterns. Are drivers fueling at the most cost-effective locations, or at the most convenient ones?
- Anomalies. Fuel purchases that do not match expected consumption patterns for a given route or vehicle may indicate waste, theft, or mechanical issues.
- MPG by truck and driver. When you can see fuel economy at the individual level, you can identify which trucks need mechanical attention and which drivers could benefit from efficiency coaching.
- Network discount utilization. Fuel card networks offer discounted pricing at partner locations. Tracking utilization rates tells you whether your drivers are taking advantage of available discounts.
Idle Time Reduction
Idling burns approximately 0.8 gallons per hour. For a truck that idles four hours per day, that is 3.2 gallons — roughly $12-14 per day — producing zero revenue miles. Over a year, that is over $4,000 per truck in pure waste.
Reducing idle time requires a combination of technology and policy:
- Auxiliary power units (APUs) provide climate control and electrical power without running the main engine.
- Idle monitoring and alerts track idle time by driver and unit, creating visibility and accountability.
- Driver education on the real cost of idling changes behavior when drivers understand the financial impact.
- Shore power at facilities where trucks spend significant time parked provides an alternative to engine idling.
Regional Fuel Buying Strategies
Diesel prices vary significantly by state due to tax differences, supply infrastructure, and competition. Carriers who plan fuel purchases regionally can capture meaningful savings:
- Tax differentials. State fuel taxes range from $0.12 to over $0.60 per gallon. Fueling up before entering a high-tax state and running to near-empty before refueling in a low-tax state is basic but effective.
- Urban vs. rural pricing. Fuel near major highways and in metropolitan areas typically costs more than fuel at off-route locations. Routing to include strategic fuel stops can save $0.10-0.20 per gallon.
- Bulk purchasing agreements. Carriers with consistent fuel volume in specific regions can negotiate direct pricing with fuel suppliers, bypassing retail margins entirely.
The difference between a carrier that treats fuel as an uncontrollable expense and one that treats it as a strategic lever is often the difference between thin margins and healthy ones.
Building a Fuel Strategy
- Measure first. Track MPG by truck, by driver, and by route. You cannot improve what you do not measure.
- Set targets. Establish fleet-wide and individual fuel economy targets based on your data, not industry averages.
- Optimize purchasing. Use fuel card data and pricing tools to plan purchases strategically.
- Reduce idle time. Monitor, report, and incentivize idle reduction across the fleet.
- Review monthly. Fuel strategy is not a one-time project. Review performance monthly and adjust.
Every gallon saved goes directly to the bottom line. In an industry where margins are measured in cents per mile, fuel strategy is one of the most powerful levers a carrier has.
Ready to turn fuel into a strategic advantage?
Cogent Cloud tracks fuel performance, route efficiency, and cost per mile to help carriers optimize every gallon.
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