Transportation Leadership Journal
The transportation industry is fundamentally changing. The year 2020 will kick off a decade with new frontiers in data science, artificial intelligence, and optimization—all leading up to a shift in focus.
For the last 40 years, the transportation industry has utilized the DOE index –
a national average price calculation – to determine the cost of diesel fuel
reimbursements between shippers and carriers. Reimbursing based on an average index price creates
an inability to accurately manage diesel fuel costs in transportation. Fuel Recovery changed all
of that. Breakthrough enables shippers to leverage real-time, lane-level data to reduce the fuel cost,
consumption, and emissions in their supply chains.
Unlike an index-based surcharge program, Fuel Recovery moves beyond one average price and accounts for the time, tax, price, and geography specific to each shippers' individual freight movements. Fuel Recovery calculates the exact cost of fuel used to move goods to market, bringing transparency and fairness to diesel fuel reimbursements between shippers and carriers.
Fluctuations take place in the wholesale diesel market over the course of each week. Breakthrough clients know that fuel prices change every day and translate that into daily savings with Fuel Recovery.
Despite the current low-price environment, price distortion in the DOE Index has more than doubled since the inception of Breakthrough. This means your opportunity for savings is increasing even in a relatively low-price environment.
Fuel taxes vary dramatically by state and have a huge impact on fuel price. Fuel Recovery accounts for taxes by state - the way carriers pay taxes - to ensure accurate reimbursement of transportation fuel costs between shippers and carriers regardless of what states your movements pass through.
Regardless of the prevailing market conditions, regional volatility plays a major role in each market. Common drivers of regional volatility include refinery maintenance mishaps and weather events. Fuel Recovery accounts for these differences in regional pricing in real time, ensuring that you and your carriers are understanding and paying for the true cost of fuel.
Hear our clients talk about the value their organizations realized after implementing Breakthrough Fuel Recovery.
We created the world’s first enterprise dedicated to helping shippers achieve transparency in the fuel that moves their goods to market. Ready to discover how much your organization can save? Fill out this form and we will be in touch.