How Smart Video Fuels Smart Business
Learn how video solutions with intelligent analysis capabilities can help benefit your drivers and enhance safety programs.
Read moreFuel represents approximately 60% of a fleet’s total operating costs.1 And since fuel prices in North America continually fluctuate, and most commercial vehicle drivers average 20,000 miles per year,2 the large impact that fuel expenditures can have on a company’s bottom line is reason enough to pursue efficient fuel use.
In addition, there are other factors—like environmental initiatives and fuel efficiency standards—for fleets to consider. The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency will increase the stringency of corporate average fuel economy (CAFE) and CO2 emissions standards by 1.5% each year through 2026.3 Reducing mileage and increasing fuel efficiency can go a long way toward reducing a fleet’s greenhouse gas emissions while realizing fuel cost savings.
In the United States, a truck or car is considered a commercial vehicle when it is registered or titled to a business, or carries more than 15 passengers [7]. This fairly broad definition can include:
For the trucking industry, Commercial trucks (or CMVs) are classified based on Gross Vehicle Weight Rating and include:
Read more about CMV classification
Any increase in fuel prices can drastically impact overhead operating costs and profitability especially for truck fleets operating heavy duty vehicles. To achieve fuel efficiency improvements and offset costs, fleet vehicles ideally want to use the least amount of fuel possible over distance traveled. Even small cutbacks in fuel usage can make a big impact.
Organizations concerned with optimizing fuel efficiency often focus on operating recent model year vehicles, which tend to have better aerodynamic performance, higher MPG ratings and more fuel-efficient systems.1 To bolster overall average fuel economy, fleets can make a concerted effort to eliminate older, less fuel efficient and higher mileage vehicles.4
Another way to improve fleet energy efficiency is to invest in alternative fuel vehicles, hybrid electric vehicles and plugin EVs when older vehicles are up for replacement and renewal.
However, if new vehicles are out of the question, fleets can invest in next-generation GPS tracking technology that lets managers and owners track fuel usage and the many factors that can impact fleet fuel economy, including driver training and behavior, vehicle maintenance and route optimization.
Download this free guide to find out how you can increase fuel efficiency and bring cut costs.
Investing in telematics technology can help organizations better understand where fleet vehicles are going, the routes they’re taking and where opportunities for fuel consumption improvements exist. New technologies can be especially helpful in keeping on top of areas that might not seem directly related to fuel economy standards, but can have a big impact on efficiency and cost reduction.
Using telematics to monitor driver behavior and help managers coach actions that have a negative impact on fuel efficiency can help organizations make fuel savings and better adhere to environmental emissions standards. For example, telematics can be used to detect and record vehicle speeds and compare them against posted speed limits. Fleet managers can also set speed parameters, and receive automatic alerts about any speeding events.
To help drivers make informed route choices, telematics provides integrated navigation with critical information that helps reduce mileage while in route, including:
Managers can set the best schedules and routes by taking into account the following key factors:
When it comes to maintenance that supports optimal fuel economy, these are important points to keep in mind:
For more information on how Verizon Connect can help your fleet achieve enhanced fuel efficiency to offset costs and help protect the environment, take a look at this handy guide.
Sources:
1https://www.automotive-fleet.com/343217/operating-costs-inch-up-for-second-consecutive-year
2https://www.automotive-fleet.com/347989/how-driver-behavior-impacts-fuel-consumption
3https://www.government-fleet.com/354852/u-s-dot-and-epa-lower-gas-mileage-targets
5U.S. Department of Energy - afdc.energy.gov/conserve/idle_reduction_basics.html
6https://www.fueleconomy.gov/feg/maintain.jsp
Tags: Fuel cost management
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