02/24/2023
High Operating Costs Plague Private Trucking Fleets
From rising insurance costs and ballooning driver wages to everyday expenses, operations costs for private fleets are reaching troubling new heights. Inflation and other big-picture economic challenges are blowing budgets and creating an economic burden that’s only worsening with time. Of all the factors contributing to crippling operations costs for private fleets, one stands above the rest: the high price of fuel.
“Fuel is our biggest expense,” says Brian Piraino, Senior Transportation Manager at HP Hood. “We do have the benefit of having our own tanks on site, but trying to overcome the increased [prices] in the last couple of years is not as easy as people might think.”
Some operations are able to offset rising fuel costs by hedging diesel futures in advance. Others choose to negotiate with suppliers in real-time, riding the waves of changing prices in search of the best deal. Such is the case at HP Hood.
“We have some solid business partners throughout all regions, so we try to negotiate as best we can,” HP Hood fleet manager Dennis Wilson says of his fleet’s strategy for purchasing fuel. “When we’re doing 8,000 to 10,000-gallon drops at a time, we try to be strategic with that planning.”
Read the full article at High operating costs plague private trucking fleets - Triple T Transport
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