Transportation is by no means a cheap endeavor, but of all the expenses transportation companies have to shell out for, fuel is one of the costliest. Knowing how to calculate the cost of your trucks’ fuel consumption is critical for maintaining fuel cost efficiency.
If you don’t know how to effectively calculate your fuel consumption, you know how to budget for fuel or what you can do to save money. Over the years, a lack of efficiency can lead to the loss of significant money.
If that sounds like your transportation company, you’re in luck! We’re here to share with you our top tips for effectively calculating your trucking fuel consumption cost. Even if you believe you’re on top of your budget, these are points you should keep in mind to maximize your budget and efficiency.
How to calculate trucking fuel cost
Put simply, the formula for calculating trucking fuel cost is miles driven divided by fuel used. Here’s how to find those quantities:
- Fill up your tank, set the odometer to 0, and drive.
- When it’s time to refuel, take note of the miles driven and the gallons of fuel you needed to refill the tank.
- Use the formula! Say you refueled 170 gallons after driving 1,000 miles. Your formula will look like 1,000 / 170 = 5.88. Pretty good!
Boost efficiency with invoice factoring and a fuel card
The efficiency of each truck comes down to multiple factors:
- Truck specs (weight, age, miles per gallon, aerodynamic design)
- Load weight
- Driver habits
No matter what a truck’s MPG or the driver’s habits are, maximum efficiency is impossible if you’re behind on payments from past loads. Invoice factoring can relieve this problem by giving trucking companies immediate invoice payments.
What is freight factoring? Freight factoring companies send companies an advance worth around 85% of the unpaid client invoice. The freight company then does its best to reach out to the customer to get the invoice paid ASAP.
Once the client pays the invoice, the freight factoring company will return the rest of the unpaid invoice and take a small cut. As you can see, you won’t need to be involved in this part of the process, so it will allow you to focus on the things that should be your top priority—finding new clients and increasing cash flow!
Let us help you find the best factoring company for your freight business!
The first step to achieving max efficiency for your trucking business is to find the best truck factoring company for your business. Head over to our ratings so you can see the best freight factoring companies for trucking businesses you should consider signing a contract with. If you have further questions about freight factoring rates or the best factoring company for you, contact us today, and we’ll assist you!