You’ve installed an Electronic Logging Device (ELD) into your fleet that you think best fit your needs. Maybe you wanted low cost, maybe you wanted to leverage your drivers’ phones, or maybe you saw some cool feature. We are now a year into the ELD mandate and perhaps you’ve seen no change. Compliance is the same but the administration seems to takes more time. Safety is the same, dispatch is the same, and costs are higher.
If all of these statements apply to you, know that you are not alone. We now know that in spite of the increased Hours-of-Service compliance with mandatory ELDs, accident rates are trending in the wrong direction.
So, you’ve checked the box for “ELD compliance” now let’s consider what comes next.
Fleet technology is nothing new. I’ve been involved in fleet technology since 1988 and there were those before me. Rockwell International started the movement in 1978 when they presented a National Academy of Sciences whitepaper on a new device called the Tripmaster. By 1981, Telematics was a product – even if it wasn’t called that. If you happened to read “The Long Haul to Success” by JB Hunt he credits this technology with growing his business, and he took advantage of the chaos in the wake of the 1980’s deregulation environment.
He found a way to cut costs and create predictability in his operations. I was there as an owner-operator that lost business to JB Hunt. Once I figured out why I was losing my good loads I decided to change careers and join the new Telematics movement.
Can you do the same thing today in a disrupted environment? ELDs have changed operations more than expected and good drivers are hard to find. Is this an opportunity, or a reason to hunker down and pretend it’s all okay?
With the right information it’s not as difficult as you might think to improve your operations. One of my clients and good friends looked at a long haul route from the east coast to the Midwest. Drivers were driving as fast as the trucks would allow – 70 MPH. They were stopping for fuel, stopping again for breaks, and taking long breaks when they stopped. He incentivized his drivers to slow down by 10 MPH and added approved fuel stops as part of their digital route building in rest time at each fuel stop. The result was an increase of 1 MPG and an increase in on-time deliveries.
Let’s discuss how the right technology can give you good information, as well as some areas to look at for return on investment:
Alternative fuels are not just about being green or pure fuel cost per mile – although both are important. It’s also about down time. Many of our customers report lower maintenance costs with the absence of diesel engines’ after-treatment systems. How do you measure down time? What is the impact on your operations in terms of time and miles when a truck goes down?
Fleet Fuel Consumption
Even with lower fuel costs the 2018 ATRI report tells us fuel costs are 22% of an average fleet’s total operational costs. Even in today’s electronic trucks, the American Trucking Associations’ (ATA) Technology and Maintenance Council tells us a driver can affect fuel economy by up to 35% based in his or her driving habits. Here are some examples:
- Efficient Routing. ATRI (the American Transportation Research Institute) tells us the average trucking fleet burns 15% of their fuel traveling out of route
- Engine idle. The Argonne National Laboratory tells us that the average truck wastes 1,830 gallons of diesel annually idling; an average of 6 hours per day. This 6 hours of idle equals 42 miles of engine wear and contributes $4.41/day to engine overhaul costs. The average diesel engine pulling 10 HP in accessories at 800 RPM burns 1 gallon per hour.
- Speed control. Every 1 MPH in excess of 55 MPH increases fuel consumption 2.2%
- Rapid acceleration and deceleration. It takes energy measured in BTUs (British Thermal Units) to accelerate. This energy is scrubbed off as heat every time the brakes are applied. Efficient drivers are gentle on both acceleration and deceleration.
- The productivity costs of slowing down your fleet is not linear. An ATA study tells us that slowing your trucks allowed top speed by 10 MPH only results in a 7 MPH decrease in average speed.
Fleet Environmental Impact
Idling trucks in the U.S emit annually an estimated 10 million tons of CO2, 50,000 tonnes of NOx, and 2,000 tonnes of particulates, plus – more fuel equals more emissions. A 10 MPH average speed decrease results in an 18% decrease in NOx emissions.
Fleet Routing and Dispatching
Routing and dispatching must be joined. Planning is great, but not if the drivers don’t know about it. Great dispatch is good – but what if the drivers are not given the best plan? Do you need all those trucks? Are you keeping your customers happy while minimizing time and distance? Are you staying on time and minimizing out of route stops?
- We estimate the average fleet has 15% more trucks than needed on a daily basis. The costs of owning a truck contribute up to 40% of overall operating costs for a fleet.
- Efficient routing and dispatching maximizes your drivers’ productive time. Help your drivers plan and maximize their 13.5 hour workday.
- Efficient and predictable dispatch keeps drivers happy and reduces turnover. The more drivers’ schedules are flipped the less quality rest they will receive.
Vehicle maintenance costs are directly correlated to speed. When increasing average speed from 55 MPH to 65 MPH:
- Tire wear increases 5% – 16%, depending on GVW
- Engine time to overhaul decreases 10% – 15%
- 15% increase in oil consumption
- 15% decrease in brake life
It’s hard to measure the savings of accidents that you don’t have, but it is clear that efficient operations improve safety. Minimizing unnecessary time and distance on the road reduces exposure. Driving for fuel efficiency is also safe driving, and efficient and predictable dispatch increases rest and improves morale.
When you start to monitor a drivers’ top speed they can sometimes try to make it up in towns and construction zones. Measuring actual speed versus posted speed limits lets you know how your trucks are being operated when lots of eyes are on your vehicles, and Event Analysis can help defend your drivers and your company if an incident does happen.
What are your thoughts? Looking for the right technology for your fleet? Let us know.
Joel Beal, VP of Sales & Marketing – LoadTrek