Image

Rising costs driving fleet management evolution

5 April 2023
A Teletrac Navman survey of more than 1,800 global fleet operators has revealed that rising fuel costs (39%), disruption due to the impact of COVID-19 (32%), and supply chain pressure (31%), are the top challenges they currently face.

“The last 12 months have created new complexities for fleets, but fuel cost rises are the number one concern for operators globally,” says Alain Samaha, President & CEO of Teletrac Navman. “As the cost per litre of fuel spiked throughout last year, many operators looked to overcome the rising costs with driver behaviour programs and EV transition plans.”

EV Transition

With rising fuel costs and the global response to reducing all forms of carbon emissions building momentum, fuel conversion (23%) remains a key challenge with EV supply, alongside purchase price, and charging infrastructure concerns. A third (32%) of respondents said that the conversion to next generation fuels is one of their largest areas of expense (second to purchasing new vehicles).

Conversion is also high on the agenda for fleet owners due to concerns about their environmental impact. More than a third (41%) of those surveyed said environmental impact is their biggest concern about the current economic environment; outside of transitioning to next generation fuels – of which 30% were looking to transition to EVs in the next 12 months – maintenance of existing fleet continued to be largest expense for 39% of those surveyed.

“With supply chain issues continuing to impact EV vehicle availability and cost, some fleets are struggling to start the transition and are having to find ways to safely extend vehicle life through preventative maintenance and more conscientious use on the road,” says Mayank Sharma, Head of Global Product Management & UX.

Technology Investments

Over the course of 2023, fleets are looking to make investment in expanding their offering through technological integrations (48%), while also using technology to aid compliance (39%). Improving customer experience (39%) and recruiting and retaining drivers (31%) were also high on the list of planned investment for the next 12 months.

As with the start of any new year, the market experiences emerging opportunities and technologies that will benefit fleets. In terms of emerging technologies, fleets are focusing on implementing more digital workflows (39%) and video telematics (38%), as they seek to increase efficiency and manage the top three fleet business costs (fuel, payroll, and maintenance).

Telematics Hits the Road

With the look towards technology, nearly all (98%) respondents said they were using either a sourced or manufacturer-provided telematics solution across their fleet. While vehicle tracking (43%) was understandably the number one reason for utilising telematics, managing driver performance (33%) was the next priority, followed by using it for proof of service/job completion (32%), and of course monitoring fuel usage (30%) in tough economic conditions.

Regarding driver performance, improved driver safety (37%) was the biggest benefit of using telematics, with nearly a quarter (24%) stating it helped prevent fatigue on the road. Moreover, 89% of those surveyed used telematics to benchmark behaviour, with 91% also seeing a reduction in accidents and 24% implementing new driver behaviour to help navigate the high fuel costs. And with 31% of global fleets concerned about increasing wage demands in a cost-of-living crisis, 37% are using benchmarking to provide performance-based bonuses in a bid to retain drivers.

To explore more of the responses to the survey follow this link.

Read More
Image

Growing the potential of NZ’s forestry sector in partnership

Forestry Minister, Todd McClay, has announced the start of the Government’s plan to restore certainty and confidence in the forestry and wood processing sector. “This government will drive investment to unlock the industry’s economic potential for growth,” Mr McClay says. ...
Read more
Image

North American DEMO International running in September

The Canadian Woodlands Forum (CWF) is excited to announce that registration is now open for its flagship event, DEMO International®, to be held outside the Ottawa/Gatineau area in the beautiful region of Venosta, Quebec, Canada, from September 19-21, 2024. This world-class event, ...
Read more
Image

Extreme bushfires increasing in number and intensity

Extreme bushfires have more than doubled in frequency and intensity over the past two decades, according to a global study from the University of Tasmania. Published in the journal Nature Ecology and Evolution, the research reveals that six of the past seven years have ...
Read more
Image

Mining giants collaborate on battery-electric haul truck trials

In a major step to cut emissions, Australia’s leading mining giants, BHP and Rio Tinto, are poised to test battery-electric haul trucks in the Pilbara region of Western Australia. This initiative, hailed as a “massive opportunity” by energy analysts, aligns with the ...
Read more
Image

Plans to construct the world’s first biomass-fuelled ship

A consortium of Japanese shipping companies comprising NYK Line, NYK Bulk & Projects Carriers, Tsuneishi Shipbuilding Company, and UK- headed renewable energy group Drax Group, have recently signed a new Memorandum of Understanding, to develop both the world’s first biomass-fuelled ...
Read more
Image

€100 m investment in wood-based EV batteries

Stora Enso Oyj is preparing to invest about €100 million in a pioneering project to use wood in electric vehicle batteries and offer an alternative to components currently made in China, according to its chief executive officer. The funds would ...
Read more
Image

First long-range electric trucks to New Zealand

Windrose Technology will work with Auckland based Etrucks® to bring the first long-range electric trucks to New Zealand. The Windrose E1400 6×4 semi tractor features extreme aerodynamic efficiency, with an industry low coefficient of drag of 0.2755. Combined with the ...
Read more
Image

DC Equipment Canada return Madill to B.C.

DC Equipment has announced the opening of its new manufacturing facility in Prince George, marking the return of Madill equipment production to British Columbia. The first machines to be produced at this facility will be the Madill 3000B Log Loaders, ...
Read more
Image

Kenworth unveils futuristic SuperTruck 2

Kenworth showcased its SuperTruck 2 demonstrator vehicle at the Advanced Clean Transportation (ACT) Expo in Las Vegas last month, a project developed over six years in collaboration with the US Department of Energy’s (DOE) SuperTruck programme. The aim of the project ...
Read more