By:  Mario Pawlowski CEO at iTrucker

Can fuel hedging programs help save struggling trucking companies?

The question being, is fuel hedging right for you? Here is why we think yes, and how it can save you a significant amount of money. Diesel prices are the lowest they have ever been in the last 20 years.

The timing couldn’t be better than now for small (10-50), mid-size (50-250), and large carriers (250+) as well as shippers and brokers alike.

In the near-future program for companies with less than 10 trucks and owners-operators will be also available, please stay tuned for updates from K-Ratio and iTrucker.

Fuel cost is one of the most substantial expenses for the trucking company after drivers’ payroll and insurance costs. By getting into the diesel hedging program, you can make your company survive the challenging times that we are in now.

Given the significant volatility in fuel prices in recent weeks, we’ve been fielding numerous inquiries from companies who are interested in developing a fuel hedging program for the first time in their company’s history.

If you lack the knowledge about fuel hedging programs a fuel hedging expert will help you understand how you can save a significant amount of money for your company.

This article, along with several more, will help you obtain a better understanding of the most common fuel hedging strategies available to commercial and industrial fuel consumers.

Here is an example of how fuel hedging programs work and how much money you can save by getting into the program. This is a new and unique program compared to the existing hedging programs offered by the truck stops and banks.

Here is how you can save tens or even hundreds of thousands of dollars a month:

– One small monthly premium is paid

– No additional downside risk

– If the price of diesel increases, K-ratio will cut you a check for the difference you are paying at the pump

– If fuel drops, you gain an advantage of discounted pricing at the pump

This is not a program that replaces current freight purchases programs (fuel cards discounts, and truckstop discounts), or where you take delivery of fuel.  It is a financial tool to mitigate the exposure to increased fuel costs, thus locking into today’s historically low pricing.

Actually, these programs are huge savings on the top of the discounts you have, the difference is that you are locking into the current price of the fuel for as long as you want (longer is better, as fuel prices are expected to only to go up).

As we explained earlier in the article, there is no downside risk if you choose to sign up for the fuel hedging program outside of the small premium for each month you choose coverage for.

If the price of diesel increases, K-ratio will cut you a check for the difference you are paying at the pump, If the fuel drops, you gain an advantage of discounted pricing. It’s a win-win situation, especially during these challenging times that the trucking and supply chain industry is facing.

Crude oil and diesel pricing can not stay this low forever, so timing and urgency are very crucial.

Act now and save money; or miss the opportunity, and you may regret it later.

Learn more about fuel hedging and how it can help you save money, HERE or click on the post below

iTrucker  / Mario Pawlowski / itrucker.com / K-Ratio / DieselFuelProgram