May 9, 2008 7:13 pm US/Central
Citing Fuel Prices, Trucking Company Cuts Costs
(WCCO)
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Consider that most of the rigs have two fuel tanks. They can hold about 100 gallons of diesel each. With prices over $4 a gallon, that's cutting deep into the pocketbook.
CBS
One of the nation's largest trucking companies is taking measures to reduce its fuel costs.
Wisconsin-based Schneider National said it's dropping the top speed for its 10,600 rigs to 60 miles per hour.
The company, known for its bright orange trucks, said it will save nearly 4 million gallons of fuel a year.
WCCO talked with another local truck company that's also making changes to cut costs:
Eagan-based Transport America has more than 1,300 trucks in its fleet. Their trucks go all over the country, hauling everything from bananas to TVs. Unfortunately; the trucking business hasn't been so good lately.
"It hurt it tremendously" said Scott Arves, the President and CEO of Transport America.
Nationwide, more than 930 trucking companies have gone out of businesses since January. Diesel is causing the damage.
"Yearly cost would be about $80 million that we pay for diesel fuel," said Arves.
That cost will be even higher this year. Consider that most of the rigs have two fuel tanks. They can hold about 100 gallons of diesel each. With prices over $4 a gallon, that's cutting deep into the pocketbook.
"I've been in the business for 48 years, and I can remember when drivers would go to California with a load of freight. If there wasn't a load coming back, they'd come back empty. Now you better sell the truck rather than come back empty" said Pat Crilly, a driver with Transport America.
To save money, the company has added aerodynamic equipment on its bumpers, hoods, and side view mirrors. It will help to cut down on wind resistance.
Truckers are also slowing down.
"Our company drivers now typically run between 62 and 65 milers an hour, and that's made a significant improvement in our miles per gallon," said Crilly.
When the trucks are idling, they are not using diesel to keep the motor running.
"When we run that engine it burns about a gallon of diesel per hour. We have a small auxiliary unit in a number of our units that burn about two tenths of a gallon per hour" said Arves.
Company officials are worried that the price of diesel could jump to $5 a gallon. They said if that happens, it would be catastrophic for truckers and consumers.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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