Friday, 5 October 2012

Cost Cutting Methods for Reducing the Fuel Cost

In the current era, where economy is uncertain and prices of various things increase exponentially, optimizing the cost and profit has become very hard for companies. Particularly, the auto movers in auto transport industry that already operate on minimum margins, are striving hard to exist with the ever-rising fuel prices. Several companies have left out the car shipping industry just because of being unable to cope up with fueling challenges involved in shipping vehicles. However, a lot of top car transport companies have not only survived but also optimized their fuel cost successfully.

In auto transport industry, optimizing the fuel cost is the key to survive and progress. In order to optimize fuel costs, auto transporters are following the below mentioned strategies:

Fleet Management Software Applications

One of the major reasons why fuel cost increases is the auto shipping task force. Since truck drivers are not being monitored during transportation, they tend to visit several places and relatives by going out of their way. This actually consumes more fuel and hence, cost increases. In order to avoid fueling and refueling halts, auto-shipping companies must use fleet management services such as GPS tracking system. A vehicle tracking system enables companies to keep an eye on driver’s activities during auto transportation.

Route Optimization

Another way of reducing the fuel cost is to analyze routes for shipping vehicles. Prior to transporting a car, the auto movers must analyze all the routes leading to the required destination. Accurate calculations by keeping the basic factors condition of road, highway speed, and weigh limits in mind can certainly help auto transporters to identify the best route. Choosing the route that would cost less fuel and allow to ship vehicle urgently is a way to save fuel budget.

Shipping Multiple Vehicles at a Time

The trend of using enclosed containers for domestic transportation is decreasing. In enclosed transportation, one or maximum two vehicles can be shipped at a time which is not feasible in current circumstances for both auto shippers and customers. Therefore, interstate movers are not using multiple carriers for shipping five to seven vehicles at a time. Hence, overall fuel cost for shipping multiple vehicles is economical. However, for multiple shipping, optimizing the route to come up with the best strategy is imperative. The better route selection will result in less fuel expenses.

These three vital fuel cost-cutting strategies are in practice in the entire transportation industry allowing companies to get most out of their shipping.

1 comment:

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