• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » How One 3PL Is Taking On Higher Fuel Costs

How One 3PL Is Taking On Higher Fuel Costs

March 30, 2022
Helen Atkinson, Senior Editor

At more than $5 per gallon, diesel fuel has surpassed even the historic peak of $4.70 in July 2008. Depending on the outcome of the war in Ukraine and the resultant sanctions on Russian oil, we may see prices head into previously unimaginable figures.

The U.S. is less dependent on Russian oil than other nations, particularly those in the European Union, but the impact on transportation is already being felt. Fuel surcharges — which usually insulate truckers from rising costs — are lagging as prices spike faster than anyone can keep up with, says Frank Granieri, chief operating officer of supply chain solutions at Northeast logistics provider A. Duie Pyle.

Fuel is typically the greatest expense of running a truck, and even for large fleet operators, it ranks in the top three, according to American Truck Business Services. 

Because fuel surcharges are tied to national and regional metrics released by the U.S. Energy Information Administration (EIA) every week, the surcharges being applied to invoices, typically the following week, are lagging the actual costs of purchasing fuel. For example, the average U.S. diesel fuel price jumped a record 29% to $5.25 per gallon from Feb. 21 to March 14.

“In January, our fuel costs exceeded our fuel surcharges,” Granieri says. “It’s the first time I’ve ever seen it. It’s simply because of how quickly fuel costs are increasing.”

Read more:
Diesel-Tax Holidays Are Meant to Help Truckers — But They're Not Celebrating
Fuel-Price Hikes Hit Shippers, Truckers Across U.S. Economy

As February prices continued to spike, Granieri wondered what the carrier could do in the short-term to mitigate costs.

One thing is to put a bead on idling. Like most major operators, Pyle has an ongoing initiative to reduce idling time, but they’ve now increased the emphasis on measuring that time.

“One thing fleets control is idle time,” Granieri says. “It sounds simple, and it is. But a lot depends on the type of fleet you have. If you have a long-haul operation where you’re running cross-country, idle time is going to be less than if you’re running dray out of New York and sitting in a yard for an extended period of time.”

Efforts to cut fuel consumption rely heavily on driver discretion, so “there’s a need to nudge them toward good behavior,” Granieri says. For example, Pyle often sets its trucks’ cruise control speeds slightly higher than can be achieved using the manual pedal, so that drivers prefer using cruise, which saves gas.

Granieri says he’s seen drivers respond with enthusiasm and curiosity about ways to mitigate price spikes, such as questioning whether it’s more cost-efficient to fuel at specific locations.

“A lot of our business is blocking and tackling,” he says, adding that smaller or independent truck operators have it especially hard, as it’s harder for them to pass on the increased costs.

For the future, Granieri sees great potential in harnessing the power of technology that’s designed to make truck transportation cleaner, leaner and less costly. Pyle is developing software to identify backhaul opportunities and decrease empty miles. 

“I think there’s a tremendous amount of improved efficiency available via technology,” Granieri says.

RELATED CONTENT

RELATED VIDEOS

Logistics Logistics Outsourcing LTL/Truckload Services Transportation & Distribution
  • Related Articles

    Seeking Higher Ground: How One EMS Provider Is Redefining an Industry

    How Industry Is Taking Action on Sustainability

    How Industry Is Taking Action on Sustainability

Helen Atkinson, Senior Editor

What Makes Supply Chain Workers Stay

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A WOMAN IN HER LIVING ROOM GESTURES IN DISMAY ON THE PHONE OVER AN OPEN SHIPPING BOX

    Retailers – Quit Bellyaching and Differentiate Yourself on Returns

    Reverse Logistics
  • A Mid Adult Male Truck Driver Doing Exercises Before Road Trip by the side of a truck

    Podcast | Yoga for Truck Drivers? It’s a Mother Trucker!

    LTL/Truckload Services
  • A STORE WINDOW DISPLAYS AN ARRAY OF DESIGNER PURSES

    Can AI Turn the Tide Against Product Counterfeiters?

    Sourcing/Procurement/SRM

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing