B2B Payments

Will ‘Going Green’ Cut Fleet Fuel Costs?

According to a recent report by the Environmental Defense Fund (EDF), “Phase II” greenhouse gas rules could help the fleet industry see an increase in savings.

Specifically, medium- and heavy-duty trucks have the aerodynamic characteristics and rolling resistance that could significantly influence the total amount of fuel used by a combination truck-trailer carrying freight.

“There is ample evidence that fuel efficiency and greenhouse gas standards applied to new commercial trailers could significantly increase the benefits achieved by more stringent Phase II standards for trucks,” EDF explained.

The organization added that tighter fuel efficiency standards will likely cause freight costs to fall.

EDF also explained in its report that stricter standards will reduce the amount of fuel required to haul a given amount of freight a given distance. According to estimates cited by EDF, average fuel purchases now account for approximately 39 percent of total freight costs. The amortization of equipment purchases or lease costs account for an additional 11 percent.

The organization did note though that there will be higher equipment charges in the short term, as companies work to meet the efficient fuel standards.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

——————————–

Latest Insights: 

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out the February 2019 PYMNTS Digital Fraud Tracker Report

Click to comment

TRENDING RIGHT NOW

To Top