Looks like you'll have to slay your own dragon.
By Timothy Brady
In the last post it was pointed out there are several unpredictable forces influencing what you pay for fuel. These included everything from the economy, world or regional conflict to other countries’ fuel use, weather and the omnipresent oil market speculators.

Considering the current state of the trucking business, having the cost of fuel increase right now is like being kicked when you’re already on the ground. Here are some solutions to dealing with the volatility of this fuel cost increase problem. First, get back on your feet and don’t take this laying down.

1. Get rid of the antiquated Fuel Surcharge system which is hated by a vast majority of shippers and brokers and used by many large carriers to provide a sense of false profitability to their lease operator fleets. When fuel prices are increasing at rates of ten to fifteen cents or more per week, a system that looks at the price of fuel last week to pay for this week’s cost of fuel is nothing but an utter failure. Separate your actual fuel cost from your line haul rate and charge the shipper the amount you paid for fuel on a separate line. Or, better yet, incorporate the fuel cost into your rate so you can provide the shipper with a single hauling rate number.
2. Know your Break-even Points (BeP) on every truck you own. Be sure to recalculate these BePs every time the price of fuel changes. Neither you nor your shippers can control the amount you pay for a gallon of fuel, but you can work together to incorporate it into the rates they pay (and if you are afraid to approach your shippers and work out a plan where your BeP is met, do yourself, your shipper and the rest of the industry a favor and close your doors.)
3. Develop a fuel use reduction plan. You can help both you and your customers by  conserving every drop of fuel possible. We may all be scoffing about the California Air Resources Board insisting on every tractor and trailer operating in the state applying Smart Way verified technologies and driving techniques to reduce fuel consumption. But wouldn’t  it be better to gradually invest in these technologies now before it’s mandated for the rest of the country, and start reaping the savings benefits? Many shippers are beginning to require Smart Way technologies in order for trucking companies to get their business, and it becomes a great marketing tool to gain new customers or retain current ones.
4. Motor carriers should closely monitor what’s going on in the diesel and broader energy markets. Track and optimize your own fuel purchasing through software and internet technology and use common sense in approaching the challenge.

The bottom line: we must realize the days of cheap fuel are long gone. The most important thing we truckers need in the future is a stable fuel price. And while that doesn’t seem possible now, what we need to do in the meantime is control how we use this precious commodity; be sure we are compensated for its cost by our customers, and constantly monitor both the fuel and oil markets and our own costs.

Good roads and great loads, everyone.

Timothy D. Brady ©2010
www.truckersu.com