Tips to Save Fuel and Manage Trucking Expenses

With rampant inflation throughout the economy, especially in diesel prices, it is harder than ever for shipping and transport companies to keep their cash flow healthy and their margins strong. You’re likely paying more in operating costs than you ever have in the past. That means your accounts receivable aren’t going as far and, when there is a delay in payment, it hurts you even more. How do you save on fuel and reduce your expenses as much as possible? Here are some options you may not have considered.

Vehicle Efficiency

Vehicles with even minor issues become less efficient and burn more gas than they would normally. Work with your mechanic to correct issues before they cause major losses in efficiency. Tire pressure is one such example. Lowered pressure forces your vehicle to use more fuel to get to the same place. Your mechanic should be familiar with the other problems which could seriously impact your fuel usage.

Also consider the efficiency of the trip itself, by considering factors like load balance. Make sure drivers pay attention to and manage axle balance, especially when moving unusually shaped items on flatbeds. Proper balance can significantly improve fuel efficiency.

Newer Vehicles

It can be difficult to afford new equipment, but when you need to make an investment anyway, choosing equipment that offers much better fuel efficiency (which is often new equipment) does make sense. You can simply do the math on this one and determine, with its better fuel efficiency, how much the new equipment will save you in fuel costs and how long it will take for that amount to make up for the increased cost of the equipment. Considering how expensive fuel costs can be for even one trip, more efficient equipment is often very much worth the investment.

Fuel Reductions

If you have contracted fuel, you’re in a better position to negotiate the price down. But what if you’re a smaller business that can’t negotiate for a bulk deal? There are some options that even the smallest operations can take advantage of. One of those options is to use apps which track gas prices. Smart drivers can try to fill up only where prices are lower.

Another option is to use credit cards which offer cash back on fuel purchases, or fuel cards that are specifically for deals on fuel. There are many of these available and it is worthwhile to compare them.

Invoice Factoring

Keeping your cashflow healthy will help you afford things like higher gas prices and the investments you need to make in order to reduce your fuel usage, such as new equipment or better driver training. Invoice factoring is an excellent way to keep your cash flow healthy enough to handle high inflation in fuel prices and in general.

When you work with an invoice factoring company you get paid for your delivery the moment that you issue an invoice for it—or within 24 hours. When you immediately get your cash on hand you can invest it back into your business or use it to extend your runway.

There is more to learn about how invoice factoring can help you. Reach out to J D Factors to explore this option.