Diesel – Liquid Gold?
March 29th, 2010
Fuel prices are on the up again and there is no indication that they will be reducing.
A typical road haulage company operates on very slime profit margins with one third of spend going on diesel. A rise in the price of diesel has a dramatic affect on whether a transport company makes money or runs at a loss. The bulk diesel suppliers offer typically very tight and very limited credit terms so a rise in the price of diesel can also have a serious affect on a hauliers cash flow.
In the last decade we have seen the pump price of diesel increase from £0.774 per litre in 2000 to £1.138 per litre, an increase of 47%. What is most alarming however is how much of this increase has been within the last few years. With such a significant commercial impact the rising cost of fuel has to be passed in the form fuel surcharges.
In an effort to limit our diesel costs Containerlift is embarking on a programme to improve its fuel efficiency across the fleet. The programme includes a number of new measures including publishing a league table of how efficiently drivers are driving and awarding bonuses to the best performers. Ensuring all vehicles are set up correctly. Are tyres inflated to the right pressure? Is the distance between the cab and trailer correct? Containerlift is also investing heavily in driver training with returns on the investment coming from improved fuel efficiency. With its own in house facilities training for the new Driver CPC will focus on fuel efficient and safe driving.
Containerlift’s Managing Director, Joost Baker explains, ‘With our annual diesel bill running in to the millions a fuel saving of even a few percent has a dramatic affect. It’s a win commercially and it’s a win environmentally. Money saved on fuel means money saved for our customers. Rather than lining the pockets of the petroleum companies I would rather help keep the pockets of our customers lined any day. We cannot control the price of diesel but we can have a great deal of control over how well we use it.’
Will fuel prices start coming back down again? Probably not! The government may reduce fuel duty again. We may find massive oil deposits in forthcoming drilling in the waters near the Falklands winning us more friends in South America.
