In June of 2015, the U.S. Environmental Protection Agency (EPA) and the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) called for a national program that would establish a new phase in regulating emission standards for medium and heavy-duty vehicles. The goal of the proposed program is to reduce carbon emissions and improve the fuel-efficiency of heavy-duty vehicles. It’s imperative that trucking companies and fleet owners have a comprehensive understanding of the impact these updated standards will have. Let’s explore the need for higher fuel efficiency standards.
Fuel Efficiency Standards
Fuel efficiency standards is a key factor in the cost analysis process for most, if not all, trucking companies. The upgraded standards set by the EPA and the NHTSA would potentially conserve about 1.8 billion barrels of oil over the lifetime of vehicles sold during the program. These changes would mean that vehicle operators would save over $170 billion in fuel costs over the lifetime of vehicles sold within the regulatory timeframe. Individual companies would also be able to analyze their potential fuel savings and organize their strategies to make further savings on fuel costs during this time.
Compliance Costs Could Impact Firms
An important element of the latest legislation is the potential cost of compliance. Companies running older model vehicles might have to replace or upgrade vehicles within their fleet during this timeframe, thereby increasing their costs during the short-term. This highlights the importance for fleet operators to conduct a full analysis of the costs and potential benefits of acquiring more fuel efficient vehicles for their operations.
Firms Must Define Operational Strategies Based on New Legislation
In addition to reviewing the net fuel savings and the costs associated with complying with the proposed legislation, companies must also review their current operations.
For example, companies may decide to reduce the number of trucks within their fleet in order to manage the costs associated with upgrading their current vehicles.
With the changes in vehicle fuel efficiency, drivers will also be spending less time refueling. This might allow companies the opportunity to increase their productivity and meet the demands of their customers with greater precision.
Companies might also analyze the latest used and new trucks for sale from market leaders such as Coopersburg & Liberty Kenworth, as they seek to improve their fleet’s performance. It’s an area of rich opportunity within the trucking marketplace and a subject that requires close investigation from company leaders to ensure a positive net impact on their businesses.
The trucking industry continues to evolve in response to the regulatory changes imposed by government leaders. For forward-thinking companies, gaining a perspective on these changes and how they might impact their business over time can protect their long-term revenues and ensure growth in future.