Penske Truck Leasing

Increase Efficiency To Offset Rising Costs

The trucking industry is facing increased costs from nearly every angle, including labor, interest rates, equipment expenses, insurance and more. Although operational costs per mile are trending upward, the freight market remains soft, making it difficult for fleets to raise rates. As a result, fleets have to focus on managing costs.

There are several ways fleets can increase efficiency and optimize their expenses.

Spec the Optimal Vehicle: Spec’ing the right vehicle for the application is critical. It improves overall efficiency and fuel economy while also reducing operating costs and the risk of mechanical failures. Utilizing data (including information from the engine control module such as average trip speed, the gear ratio and engine horsepower) can give fleets insight into how a vehicle is utilized.

Increase Fuel Efficiency: Fuel is one of the top costs fleets experience, and even pennies per gallon add up. Increasing fuel efficiency and minimizing fuel consumption create significant cost savings. Advanced engine technologies, such as improved combustion efficiency, reduced friction and optimized gear ratios, can improve fuel efficiency. Transmission technologies, such as automated manual transmissions (AMTs), can also enhance fuel economy by ensuring the engine operates in its most efficient range. Additionally, certain tires, such as low-rolling-resistance tires, can drive further fuel efficiency savings.

Focus on Aerodynamics: The aerodynamic design of a truck significantly impacts fuel economy, and EPA-verified aerodynamic devices can save fuel by minimizing aerodynamic drag and maintaining smoother airflow. The North American Council for Freight Efficiency has identified dozens of technologies and best practices to improve freight efficiency.

Use Quality Fuel: The energy content of the fuel directly impacts fuel efficiency, and fuels with higher energy content release more energy when combusted. If there are issues with fuel such as contamination, a low cetane rating or high sulfur, the fuel economy can drop.

Cut Down on Idling: An idling Class 8 truck can consume one gallon of fuel each hour and create more wear and tear on the engine. NACFE reported that the average truck idles about 1,000 hours a year, and the Environmental Protection Agency estimates that each year, long-duration truck idling consumes one billion gallons of fuel. Auxiliary power units — whether battery or diesel-powered —reduce idling, which reduces fuel consumption, increases engine life and improves driver comfort.

Reduce Downtime: Downtime due to equipment issues can create direct and indirect costs for fleets. Proactive preventive maintenance can help fleets address issues before they become significant problems.

Increase Back-Office Efficiency: Licensing vehicles, completing fuel tax reporting and complying with Department of Transportation audits can be complex processes. Tapping into a third party that can provide support can help free up back-office staff within the fleet while ensuring all requirements are met.

Let Penske Help

There are several ways leasing with Penske can help fleets increase efficiency and manage costs. To learn more about how Penske can help you spec the right vehicle, get ahead of fuel costs, improve maintenance, and streamline regulatory compliance, contact us today.

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Fleets Continue Adopting Sustainable Technologies

Electric powertrains, cleaner-burning diesel technology and alternative fuels are continuing to improve, and original equipment manufacturers, shippers and carriers are all moving toward net-zero goals, according to the fifth annual State of Sustainable Fleets report.

“If I had to really sum up the report for this year, there’s one word that comes to mind: growth,” said Erik Neandross, president of GNA, which produced the report. “Over the last 30 years, the market has had ups and downs, but over the 30-year period, the markets have grown 1,000%.”

While discussing the report in his keynote speech at the Advanced Clean Transportation Expo in Las Vegas, Neandross said that announcements about new, clean technologies are “seemingly nonstop.” He added that challenges remain, including costs, the amount of power available on the grid and infrastructure needs.

“We know it is not going to be easy. We know it is not going to be cheap, and we know it isn’t going to be a straight line quarter after quarter,” Neandross said.

Even still, OEMs are as committed as ever, and fleets are investing in new solutions. Neandross said the three big drivers are massive global investments in clean technology, growing commitments around sustainability and carbon reductions, and regulatory requirements. “We have a couple of really critical regulations that were adopted that are going to accelerate our move forward to lower carbon fuels and zero-emission vehicles in every sector: light, medium, heavy,” he explained.

Fuel and technology growth included:

Renewable Diesel: The national consumption of RD increased by 68% year over year, according to the report. Renewable diesel is considered a “drop-in” fuel, meaning it can be used as a direct replacement for diesel fuel in diesel engines. Most consumption occurred in the West Coast states. The report found that 75% of fleets currently using RD would buy it in greater quantities if they could access it without additional cost, and 63% have asked their providers about the option.

Natural Gas: Fleet demand for natural gas increased again in 2023, concentrated among existing users. Additionally, more than 150 new renewable natural gas production facilities came online in 2023. The growth helped sustain CNG prices and helped them be competitive with other fuel choices. The demand for RNG among fleets also grew for the third consecutive year.

Electric Vehicles: More than 26,000 battery-electric trucks, vans, and buses were delivered to fleets in 2023, doubling since 2022. Cargo vans and pickup trucks made up 90% of those deliveries. Tractor deliveries grew sixfold, from more than 100 to nearly 700 units, while volumes doubled in virtually all other sectors. The State of Sustainable Fleets report found that at least 39% of the fleets surveyed in every sector reported using BEVs in 2023, the highest use rate across the five leading clean drivetrains for fleets.

Hydrogen: Growth of hydrogen in 2023 was spurred by federal investments in hydrogen production and infrastructure, notably the Department of Energy’s allocation of $7 billion to seven proposed fuel production and distribution hubs spanning 16 states. It will be several years before the H2 hubs meaningfully impact fuel price and supply, but the program is expected to reduce the risk for investors exploring hydrogen fuel and vehicle production. Major OEMs pursuing the hydrogen space include Kenworth, Peterbilt, Toyota, Hyundai and Nikola.

Diesel Technology: Fleets purchased about 7% more commercial trucks in 2023 than in 2022, signaling an upswing in demand as fleets rush to purchase new trucks before the EPA’s MY2027 heavy-duty engine standard kicks in. Estimates suggest this standard could raise diesel vehicle costs by approximately 12%.

Overall Energy Solutions

Charging infrastructure gaps and delays dominated discussions in 2023. Reliable access

to sufficient power is crucial to the success of any private or public charging facility, and

electrical service has become the make-or-break element of the first depot-sized projects, according to the report.

During the event, Penske Transportation Solutions and ForeFront Power announced their new joint venture — Penske Energy — to help commercial fleet operators plan, design and deploy optimized EV charging infrastructure capabilities that support and safeguard their operations.

Penske Energy will provide fleet operators with comprehensive EV charging and energy infrastructure advisory consulting, including strategic and operational planning, technology assessment, infrastructure designs and practical project implementation.

“We’ll work with our longstanding supplier partners in the energy and energy infrastructure sector and bring to bear the best possible solutions available for our commercial fleet customers,” said Drew Cullen, senior vice president of fuels and facilities at Penske Transportation Solutions.

Available Technology

Penske Truck Leasing has a wide range of low- and zero-emission solutions available today, including CNG, battery-electric and late-model diesel vehicles as well as renewable diesel. Learn more by contacting us today.

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CVSA's International Roadcheck To Focus on Tractor Protection Systems

The Commercial Vehicle Safety Alliance’s International Roadcheck is scheduled for May 14-16, and the agency has said inspectors will focus on tractor protection systems. Specifically, inspectors will look at the tractor protection valve, trailer supply valve and anti-bleed back valve, which CVSA said are critically important vehicle components but may be overlooked during trip and roadside inspections.

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Safety Technology for a Better Driving Experience

Advanced Driver Assistance Systems, also called ADAS, are designed to augment driver capabilities and enhance safety. They also have the added benefits of increasing driver comfort and improving the overall driving experience.

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Take a Multipronged Approach To Combat Fuel Theft

Fuel theft is a significant concern for trucking companies, leading to financial losses, increasing business costs and potentially disrupting operations. Fuel theft can happen in various ways, from drivers misusing company fuel cards to criminals installing skimming devices at fuel pumps to capture payment card information, which they then use until a fleet manager deactivates the card.

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Secure Your Cargo (& Avoid the Perils of Shifting Loads)

As a professional driver, you face countless challenges on the road, and you can’t anticipate them all. But here’s one that’s totally within your control: keeping your cargo safe and secure.

Proper cargo securement is more than just making sure every item in your trailer or flatbed is tied down. It also involves achieving the right balance. When your cargo is evenly distributed, you’ll avoid the risk of load shifting. It’s a serious problem that makes a truck difficult to drive. It can even cause a truck to roll over.

A few ways to secure your cargo and prevent load shifting:

Sweep out your trailer so you start with a clean floor.
Inspect all securement devices (tie-downs, ratchet straps, chains, binders, cargo nets) for signs of wear and tear. Replace any damaged tie-downs and be sure to always carry more than needed just in case a replacement is needed while on the road.
Check the working load limit (WLL) of your tie-downs so you don’t overstress them.
Inspect the load you’ll be hauling. Look for the weight (which should be listed on the bill of lading) and length of your cargo.

As you load

Use the right number of tie-downs. Federal Motor Carrier Safety Administration (FMCSA) recommendations call for:
- One tie-down for items that are 5 feet long or shorter and weigh 1,100 lbs. or less
- Two tie-downs for
  - Items that are 5 feet long or shorter and weigh 1,100 lbs. or more
  - Items that are longer than 5 feet but shorter than 10 feet
- Use additional tie-downs for every extra 10 foot of length
- Unsure of how many tie-downs to use? Add an extra tie-down or two to be extra cautious.
Make sure all securement devices are tight but not too tight—they should snap like a rubber band.
Use edge protectors to prevent straps from damaging your cargo.
Secure any rolling cargo with chocks, wedges or cradles.
Distribute your load as evenly as possible and try to secure cargo to fixed points inside your trailer or on a flatbed.

As you drive

Inspect your cargo within the first 50 miles, then every 3 hours, 150 miles or at change of duty. Make sure nothing has shifted or moved. Tighten any loose tie-downs.
Drive safely. Take tight curves slowly. Avoid harsh braking. Slow down in inclement weather.

Remember, proper cargo securement is the driver’s responsibility. Take the time to balance your load, drive safely, and check your load in transport to keep you and your cargo safe.

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Cargo Theft Hits a New High

Cargo theft spiked last year, with thieves becoming more strategic and targeting high-value loads.

“The motives and the way the criminals are operating has changed, and cargo theft is increasing tremendously,” said Keith Lewis, vice president of operations at CargoNet, a Verisk company.

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5 Ways To Increase Sustainability Today, Plus a Look at What's To Come

Sustainability within the supply chain continues to improve, creating economic and environmental benefits for shippers and transportation providers. A wide range of solutions that can reduce carbon emissions, increase efficiency and improve operations is already available, and new solutions are on the horizon.

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Stay Current on the Increasing Number of State-Level Regulations

New regulations affecting fleet operations are increasing, and carriers must comply with existing requirements while keeping up with the latest changes. The federal government and some states are creating stricter emissions requirements. California often takes the lead at the state level, and the California Air Resources Board (CARB) has adopted several measures that are being introduced or implemented in other states.

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Use Trailer Leases To Increase Transportation Capacity or Storage

The strategic utilization of trailers provides a scalable solution that helps fleets meet shifting transportation capacity or storage needs without the long-term commitment and expenses associated with adding trucks or leasing warehouse space.

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Relationships Remain Critical Amid Rising Costs and Ongoing Uncertainty

After several tumultuous years, the supply chain continues to improve, and shippers and carriers are getting back in sync, according to the 34th Annual State of Logistics Report. Even still, it remains important for those in the supply chain to focus on relationships, efficiency and resiliency amid rising costs and economic uncertainty.

“If the past years have taught us anything, it is that uncertainty is now a near constant in the global economy, and the smartest way to respond in good times is to gather resources for when conditions suddenly shift again,” according to the report, entitled The Great Reset.

The Annual State of Logistics Report is produced for the Council of Supply Chain Management Professionals (CSCMP) by the global consulting firm Kearney and presented by Penske Logistics.

In 2022, the market swung back sharply in shippers’ favor, and supply and demand largely rebalanced across all transit modes. However, Balika Sonthalia, a partner with A.T. Kearney and co-author of the report, said it is important for companies to take steps to remain the shipper of choice because the pendulum will eventually swing. “We’ve seen this before, and carriers will remember how you treated them,” she said.

Sonthalia added that third-party logistics providers are continuing to provide valuable guidance to shippers. Before the pandemic, logistics was often considered a side function, but it has continued to gain attention and is now widely seen as a strategic differentiator. “Companies look at 3PLs less for pointed solutions and more for strategic partnerships to run certain flows soup to nuts,” she said.

Overall Costs and Trucking Capacity

Those partnerships are increasingly important as companies work to manage costs and capacity. Costs have increased, with overall U.S. business logistics costs rising 19.6% to $2.3 trillion in 2022, compared to $1.85 trillion last year, representing 9.1% of the national GDP — the highest percentage of GDP ever. It also marks a 46% USBLC increase between 2020 and 2022.

Plus, transportation costs reached $1.39 trillion, up from $1.3 trillion in 2021. Road freight, the most significant segment of U.S. logistics expenditure, increased to $896 billion from $844.5 billion in 2021.

Road freight saw little change in overall demand, but capacity increased throughout 2022. Sonthalia said the dry and load-to-truck ratio — a figure calculated by dividing the total loads by the number of available trucks — is at the lowest it has been since June 2020, which is a signal of the level of capacity available in the market.

As a result of shifts in capacity supply and demand, there was a greater spread between spot and dry rates than in previous years, according to the report. From January 2022 to January 2023, the spot rate dropped 23%. The changing dynamics caused shippers to seek a new balance among dedicated, private and one-way services.

Resiliency and Near Shoring

Sonthalia said costs have always been a factor in supply chains, but resilience has become a top priority, which is leading to more diversification and reshoring. “I think we’ll see more diversification by volumes. As that happens, your origin for shipments changes, and there is an entire ripple effect,” she said, adding that U.S. companies have been moving supply chains closer to home. The report noted that American imports of Mexican manufactured goods grew 26% last year.

Visibility is an essential tool when increasing resilience, Sonthalia said, explaining that having visibility into inventory lets shippers make strategic decisions to pivot quickly if a disruption occurs. Technology can provide the necessary visibility to increase resiliency while helping reduce costs.

According to the report, 3PLs are investing heavily in their technology offerings, with respondents reporting that 96% of 3PLs have migrated to the cloud compared to 86% of shippers, and 80% of 3PLs are investing in Internet of Things technology compared to 77% of shippers.

Other Key Findings:

E-commerce sales remain strong. In 2022, the U.S. e-commerce market grew by 8% to $1.03 trillion compared to $871 billion in 2021, constituting 14.5% of the entire U.S. retail market.
U.S. parcel market costs increased by 4.7% compared to 2021.
Motor carrier costs grew 6.1% year over year. The report noted that carrier margins were threatened by low rates and higher resource costs.
Class 1 railroad costs increased 17.6% year-over-year. Railroads saw operating income increase by 8% and total revenue increase by 14%. However, rising costs undermined operating ratios, and the sector suffered from service-related issues, ongoing congestion and high-profile derailments.
Air freight costs increased by 1.7%. Worldwide air cargo revenue is projected to reach approximately $150 billion in 2023, 25% below 2022 but still 50% higher than the pre-COVID revenue figures from 2019.
Domestic water costs increased by 18.4%. Major ocean liners saw combined global operating profits of $215 billion in 2022, but the trend has lost steam, and 2023 profits are projected at $43 billion, an 80% year-over-year decrease.

The full report is available to download here: https://www.penskelogistics.com/insights/industry-reports/state-of-logistics-report.

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Brake Safety: 10+ Tips to Pass an Inspection

When you press the brake pedal on your truck, you expect an instant response. Yet any number of issues can cause your vehicle’s braking systems to fail, increasing your risk of a serious accident while putting you and your cargo in danger. That’s why maintaining your truck’s braking system is so important and a major part of your Pre-Trip Inspection.

To ensure brake safety every day of the year, here are 10 tips to help ensure your brake linings and pads are ready for the road:

1. Inspect all the parts of the brake linings and pads that you can see during pre- and post-trip inspections.

2. Check for signs of missing or damaged brake lining, such as grooves in the drum from rivet contact.

3. Look at the shoe-to-drum clearance and ensure that there is adequate lining on the shoe.

4. Try to find any signs of leaks from the hub or other components that may contaminate the lining or pad surface.

5. Look for any missing lining blocks.

6. Scan for visible cracks or voids in the lining block.

7. Check for any exposed rivets or lining blocks that look loose on the shoe.

8. On disc brakes, pay close attention to the condition of the rotor. Look for either metal-to-metal contact or heavily rusted rotors across the entire friction surface on either side.

9. Make any repairs in accordance with the brake manufacturer’s requirements and guidelines.

10. Note any brake lining or pad-related issues in your driver vehicle inspection reports and report them to the motor carrier.

In addition, always check for these brake-related items during pre- and post-trip inspections:

Any missing, non-functioning, loose or cracked parts
Audible air leaks coming from around the brake components and lines
Slack adjusters that are different lengths
Air pressure below 90-100 psi
Rust holes or broken springs in the brake housing section of the parking brake
Malfunctioning ABS warning lamps

Remember, a properly conducted pre-trip inspection will go a long way toward passing a brake inspection — and keeping you and those around you safe.

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The Path to EV Adoption Starts With Penske

Battery electric vehicle (BEV) technology has continued to develop and is a growing alternative to traditional diesel and other alternative powertrains in certain applications. The 2023 State of Sustainable Fleets report found that interest in BEVs has spread across medium- and heavy-duty fleets and has attracted more attention than other clean drivetrains.

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Improve Fleet Maintenance With Contract Maintenance

Regular maintenance is critical to equipment’s safety, reliability, and efficiency, helping fleets and drivers prevent mechanical failures, avoid roadside violations and maintain uptime. However, maintaining equipment can be complex, requiring significant investments in tooling, training and labor. Penske can ease the maintenance burden on trucking companies through its contract maintenance plans, allowing carriers to focus on their customers and business.

Penske’s maintenance partnerships start by bringing carriers’ trucks up to Penske’s high quality standards with a regular maintenance schedule. Program benefits include:

Easy Access: Customers can access a nationwide network of more than 900 shops and 10,000 technicians.

Discounted Rates: Penske offers tire retreading, DPF filter cleaning and rental trucks at preferred rates as part of its contract maintenance program.

Roadside Support: While preventive maintenance helps curb roadside failures, breakdowns happen. The key is getting equipment back up and running quickly. There are more than 12,000 service providers who deliver 24/7 roadside assistance.

Fleet Services: Regulatory compliance requires careful documentation and can be a time-consuming process, but Penske’s Fleet Services and Operating Tax groups offer vehicle licensing, permits and tax reporting services, taking the complexity out of compliance.

Fueling Services: There are more than 360 Penske fueling locations, and when customers fuel at Penske locations, they have the benefit of customer service representatives who conduct vehicle and safety inspections and top off the oil, windshield washer fluid and antifreeze during fueling.

Visibility: Customers have access to real-time fleet data with Fleet Insight™ to help them make proactive decisions and keep their vehicles on the road.

Data Analytics: Penske analyzes vast amounts of data from across its network, including remote diagnostics, to understand when specific components may fail on each vehicle type. Detailed information allows shops to be proactive and schedule a repair before there’s a problem.

Dynamic PM: Penske’s Dynamic PM services analyze specifications and trends unique to each fleet, delivering the right preventive maintenance at the right time. Technicians completing a Dynamic PM use speech recognition technology to guide and record specific inspection steps, which ensures techs can focus on accuracy, safety and quality.

Extended Hours: Some locations offer extended hours and weekend availability so technicians can perform maintenance to help boost fleets’ uptime.

To learn more about how Penske’s Contract Maintenance can benefit you, contact 855-345-7268.

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industry insights

Let Penske Help

Fuel and technology growth included:

Overall Energy Solutions

Available Technology

Inspection and Maintenance Tips

Know What To Inspect

Roadcheck Inspectors To Complete Hundreds of Level I Inspections

Catalysts for Change

Technology Available Today

Learn More

Additional Solutions

Tap Into Technology Without Upfront Costs

Solutions Available Now

Emerging Technologies

Advanced Clean Fleets Rule

Advanced Clean Truck Rule

Transportation Refrigeration Unit Requirements

Warehouse Actions and Investments to Reduce Emissions Regulation

Clean Truck Check

Overall Costs and Trucking Capacity

Resiliency and Near Shoring

Other Key Findings:

Identifying Entry Points

Accessing Charging Infrastructure

Looking Ahead

Learn More

Contract Maintenance With Extended Maintenance Hours

On-Site Maintenance

Mobile Maintenance

Managed Maintenance

24/7 Roadside Assistance