America’s private truck fleets are being dramatically affected by two events that have a major impact on their overall cost per mile: new engine emissions standards that have negatively affected fuel economy,
and a record cost per gallon of diesel fuel.
Fuel ranks as the second-highest operating expense for truck fleets, outflanked only by driver salaries, according to recent industry statistics. With the 2005 cost of diesel fuel estimated to exceed 2004 fuel costs by 38%, industry leaders are looking for new solutions to this escalating situation.
First Fleet Corp., a subsidiary of PHH Arval and a national provider of asset management and other services to the nation’s private truck fleets, has announced a new initiative designed to address this runaway cost. The company will sponsor an 18-month fuel economy study utilizing telematics technology. The study will be conducted under “real world” operating conditions.
“Private truck fleets are under pressure to stop the bleeding and improve their fleets’ fuel consumption,” said John Flynn, president and CEO of First Fleet Corp. “Our goal is to study their use consumption patterns with new onboard telematics technology. This will help them define new strategies for achieving better fuel economy, whether it’s through new equipment specs, improved driving methods, reduced idling time, driver training or enhanced maintenance practices.”
To implement the fuel consumption study, during Phase I First Fleet will have nearly 200 trucking telematics devices installed in a large cross-section of Class 8 tractors in 10 participating private truck fleets. The industry market segments participating in the study are grocery, manufacturing, fuel and retail distribution. The study will include a cross section of multiple demographics in order to identify various ambient temperature and operating terrains. The monitoring devices will be divided equally among trucks with pre-emission (before '02) and post-'02-emissions standards engines. Each truck will be required to meet certain pre-study mileage/usage criteria and not exceed 500,000 miles at the end of the study. The study will also include some new 2007-emission standard engines supplied by Caterpillar.
The telematics devices will employ wireless technology to deliver data directly to First Fleet for evaluation, with results available in online confidential reports to customers involved in the study. The onboard devices, installed with the knowledge of the drivers, will monitor fuel usage, driver performance, methods of operation, and the effect of truck specifications and equipment technology on fuel consumption rates.
First Fleet will sponsor the monthly licensing/usage fee for data retrieval and evaluation for the telematics devices over the 18-month life of the study. First Fleet will also sponsor the construction of the data repository to collect data and provide the resources and analytic tools to drive the study. Participation in the study is free to the companies involved.
According to a recent evaluation of fuel consumption costs and economies, a fleet of 100 that increases its fuel economy by 1/10th (0.1 mpg) of a gallon per mile, will result in a savings of $65,000 a year. Through evaluation of the results of this study and execution of new operating strategies, First Fleet’s objective is to help its customers affect a 3/10th per gallon (0.3 mpg) improvement in overall fuel economy, for a savings of $200,000 a year or $2,000 per year per tractor.