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Act now to protect yourself from rising fuel costs

Current fluctuations in the exchange rate for Sterling due to world events and the as yet unknow quantity that is BREXIT, along with unpredictable changes in oil prices, have recently concentrated the minds of logistics managers as to how better save fuel and thus costs on their deliveries.

Recent data from the RAC showed that UK fuel prices increased as the Pound lost 3% against the US Dollar in July and while wholesale prices of crude oil are continually fluctuating, and although down on prices in 2018, the fact that all oil transactions are conducted in US  Dollars means that a strong dollar has offset the recent fall in crude oil prices. While global uncertainty is also keeping the US Dollar strong.

The volatility of crude oil prices is making the short-term price prediction of oil difficult. However, the EIA (International Energy Administration) have predicted that by 2025 the average price will rise to $81.73 per barrel for Brent crude oil, currently around $67 in 2019. Rising to around $105/barrel in 2040.

If the pound falls any more against the US Dollar it will only make things worse for fuel prices in the UK. Transport Managers and Operations Directors need to ensure that they take this into account, along with many other factors, when making strategic decisions for the future. 

The fuel bill of a company involved in transport and deliveries can be heavily influenced, not only by how their employees drive their vehicles, but also by the routes and the density of deliveries on those routes”. Said Andrew TavenerHead of Marketing for Descartes Systems UK Ltd.Choosing a software solution provider that can combine route finding & scheduling software to improve delivery density along with software that can monitor a driver’s behaviour will reduce a company’s overall fuel bill dramatically.

Descartes offer several solutions to help any logistics company reduce their carbon footprint and improve road safety as well as their bottom line. Reductions in fuel consumption can be seen through influencing a driver’s habits with a Telematics system, while Routing and Scheduling software will increase delivery density per mile and reduce the miles driven on delivery routes, also leading to lower fuel bills.

Road transport operators can select to install and utilise just one of these software solutions, but the greatest improvements come when both are implemented and a company’s whole logistics operation is taken into consideration.

Find out how Descartes can save you time and money whilst achieving more deliveries in fewer miles – Contact us.

Source: Oil price forecast The 

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