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As fuel costs rise, the impact is felt throughout the industry a
nd the consumer. Foreign and domestic policies, clean energy initiatives and off shore drilling are potential long term solutions, but the results of those initiatives will not be felt for years or decades.
nd the consumer. Foreign and domestic policies, clean energy initiatives and off shore drilling are potential long term solutions, but the results of those initiatives will not be felt for years or decades.Solutions for Logistics Companies and Consumers
The immediate solution is for logistics companies and consumers to adapt to the current issue of rising fuel costs. Consumers and businesses are paying more attention to where their money is going, and fuel costs are certainly at the top of the expense category. Ultimately, the increase in fuel costs will be imbedded in the price of goods purchased by consumers.
How Carriers Reduce Their Fuel Costs
Carriers can partner with 3PL warehouses to help better utilize their equipment. Third party warehouses give the carriers an opportunity to max out their LCL loads by giving them a location to cross dock multiple shipments for local deliveries.
Carriers are able to better able to reduce their fuel costs by doing the following:
- Maintaining equipment
- Combining partial loads
- Reducing idle times
Building a relationship and a network of 3PL warehouses throughout the country provides a quick solution to problems that arise everyday for carriers/drivers. The fuel savings a carrier can gain by having a quick solution to problems can lead to less fuel waste and unnecessary expenses that ultimately lead to higher margins for the carrier and reduced costs to consumers.
Need help with reducing fuel costs? Request a consultation from Warehouse Basics today!