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Many fuel networks require the carrier to pay a base price for fuel, as established by current market prices and contract, plus a fee. Carriers can also purchase fuel on a discount program whereby the prearranged price is a set discount amount off of the pump price.
All carriers should track the fuel mileage of each truck as well as each driver’s performance.
Fuel surcharge. There are no legal requirements stating that a customer must pay a carrier’s fuel surcharge. Fuel surcharging is negotiated between participants by way of contract. If a carrier chooses to implement a non-agreed upon fuel surcharge, the customer may refuse to pay it and consequently, the carrier has no recourse.
Because of the reduction function in fuel surcharging, many customers have become more willing to negotiate a fuel surcharge increase rather than a shipping rate increase. Customers see it as more difficult to renegotiate a lower shipping rate based on lowering fuel costs, while a fuel surcharge rate is designed to automatically do that.
Once an exclusive or company network is established, the fleet manager will need to create a tracking mechanism to identify problems and make adjustments as needed. Off-network fueling needs to be avoided since this negates the whole purpose of the fuel network; fuel cost savings. If fuel stops are too far apart, too close together, or are not acceptable to the drivers, considerations and adjustments may need to be made to assure maximum savings from the program.
Both fuel hedging and bulk buying can bring sizable reductions in fuel costs to a carrier, but clear, concise studies must be done to determine proper purchasing schedules, relating to time and volume (use).
Fuel conservation measures. Fuel conservation can be realized through proper spec’ing of equipment to match the specific needs of the carrier, and through the use of a quality inspection and maintenance program for all vehicles. Some maintenance areas that directly affect fuel use are tire inflation and condition, bearing condition, brake operation, fuel system integrity, oil level and condition, and overall engine performance.
Driver behavior and incentives. There are numerous incentives that can be put in place to promote fuel savings through proper driving techniques.