What are the actual costs of operating a fleet?

There is no shortage of factors to consider for fleet operating costs. Fleet managers have a lot on their plate, from choosing the right vehicles and training the right drivers to ensuring a fully compliant fleet.

However, minimizing fleet operating costs is one of the top priorities of a fleet manager. If costs run too high, it directly impacts the trucking company's profit and can lead to a big monetary loss.

Here are some of the fleet operating costs.

Fuel costs

Fleet managers have a plethora of factors to consider when it comes to fuel costs. It involves planning, budgeting and managing fuel and drivers' driving habits. In addition, regular maintenance checks ensure fuel is being used efficiently. Not to mention poor route planning could also result in unnecessary fuel consumption.

Because fuel prices are usually unpredictable, it can be difficult for fleet managers to manage fuel costs. That's where fleet management software plays an important role. With a powerful vehicle tracking tool, fleet managers can monitor poor driving habits that lead to fuel waste.

Compliance and violation fees

Failure to comply with fleet regulations and rules can result in catastrophic monetary consequences for a trucking company. Companies with multiple violations may pay a hefty fee. Moreover, shipment companies often avoid working with risky companies that have a bad track record for violation fees.

That's why it's vital for companies to never neglect compliance with regulations. In the USA alone, the trucking industry pays over USD15 million worth of fines per month due to HOS violations1. This doesn't even factor in insurance costs and roadside accidents due to driver fatigue or other reasons.

Cost of electronic logging devices

Electric logging devices or ELDs are also factored in fleet operating costs. It's important to research and do a cost analysis of the various types of ELDs on the market. While some believe the costs are expensive, the benefits far outweigh the price. Fleet managers and their business will benefit from lowering fuel consumption and avoiding violation fees from failure to comply.

Lowering fleet operating costs

Now that we've established what the key fleet operating costs are, let's discuss something more important: how to lower them. There are several things you can do to reduce the cost of running a fleet. One first thing is to install a fleet management solution like Webfleet. It can help you:

Optimize routes: The best route means more fuel efficiency.
Monitor driver behavior: Understand your drivers' habits and how to improve them to avoid excessive fuel consumption as well as roadside accidents. Webfleet also sends real-time feedback and advice to curb bad driving habits.
Make compliance simple: Get notified when your drivers are nearing a breach and take immediate action.
Automated maintenance schedule: Set notifications when maintenance is due to keep vehicles in top condition and avoid more expenses.

Visit the Webfleet page for more information on how Webfleet can help you lower fleet operating costs.

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¹ https://keeptruckin.com/blog/hos-rules-cheat-sheet-avoid-violations