The trucking industry is suffering the aches and pains of this disastrous economy along with the rest of the country: loads are down while fuel prices remain relatively high. According to the U.S Department of Transportation Statistics, the Freight Transportation Services Index has declined a whopping 14.8 percent in the last 11 months alone. Although this number includes all means of freight transport, we can be assured that the trucking industry is hardest hit since it accounts for a full 70 percent of all shipping traffic in this country.

How does a trucking company survive over the long term in this kind of toxic environment? The answers to this question are hardly simple ones, and it’s impossible to cover them all in one blog posting. However, companies have to start somewhere. Here are 3 very basic areas where cost-reduction measures can be implemented: right here, right now.

1. Phase Out Unproductive Drivers Quickly

You must set even more aggressive performance goals in order to separate the productive from the unproductive drivers in your employ. There is hardly a shortage of qualified drivers in the industry at the moment, and so setting higher standards simply makes good sense. Higher productivity in drivers can be helped by more effective scheduling of dispatches, load allocation, etc. But if there are bad apples in your barrel, they should be phased out: right here, right now.

2. Use Your Fleet Wisely

You know that a truck nearing the end of its life will not be as fuel-efficient as a newer model; take the time to assess your fleet and put your best-mileage vehicles on longer monthly runs and reserve your older vehicles for shorter jobs. Because newer trucks have less chance of breaking down, they should be the ones to use for night runs to keep costs lower. Set clear boundaries for idle times as well as for MPH limits to save fuel, and put more trucks on the road in the early morning hours for city jobs so they won’t be stuck in traffic. You can make wise changes that will maximize the utility of your fleet while reducing costs: right here, right now.

3. Reassess Your Trucker Insurance

If it’s been a long time since you’ve carefully reviewed your current trucker insurance plan, now is the time to see if you can’t get a better deal elsewhere. A large trucker insurance brokerage such as Hub Transportation uses its vast network of contacts to get its clients the best packages at the lowest possible prices. Making this one simple change could make a real difference to your bottom line: right here, right now.

This is just a thumbnail sketch of the many changes that trucking companies and owner/operators alike can make to help them weather the current economic storm and come out OK on the other side.

This entry was posted on Thursday, October 8th, 2009 at 6:59 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.