Transportation Fuel Costs

Fuel costs have long been large part of the budget for transportation companies. Not only is it a necessary cost, but it is many times the reason for increased charges to their customers. In many cases more recently, larger container shipping and trucking companies have been looking into purchasing their own companies for fuel resources in order to combat the increasingly high costs of fuel. This can allow for low freight rates compared to their competition, and it can give them a piece of mind that they are in control of all of the parts of their supply chain at the same time. While it can be a smart move for companies with the financial resources to purchase as part of their group since it will be cutting out a middle man, it can also be an addition concern for them since they are not actually in the fuel business. On the contrary, many other logistics companies are looking to reduce fuel costs in other ways like lowing their fuel needs. For instance a trucking company may have drivers not keep trucks running while they are loading and unloading cargo, keep equipment updated so the motors run clean and choose highway routes as much as possible for best fuel efficiency. The byproduct of raising fuel costs is additional costs to customers. When fuel costs began to rise a few years ago, these companies may have added a peak charge or a fuel surcharge to the final bill. Now we are seeing more reorganizing of these companies and many times general rate increases instead. Unfortunately these higher costs are the reality now and have become a part of the everyday budget plans for most companies. This is why an increasing number of companies have become self reliant with fuel.