Source: FreightWaves
Summary
Carriers are reducing speeds to conserve diesel fuel, but supply chain experts believe most shippers will not notice the difference. The move is part of a broader effort to reduce fuel consumption and lower emissions. According to FreightWaves, carriers are slowing down by 1-2% to achieve fuel savings. The impact on transit times is expected to be minimal. Experts say the change will not be noticeable to most shippers.
Our Reading
The trend returns with a new name.
Carriers are reducing speeds to conserve diesel fuel, echoing the 1970s “National Maximum Speed Law” that capped highway speeds at 55 mph to reduce fuel consumption. The current move is part of a broader effort to reduce fuel consumption and lower emissions. The strategy is reminiscent of the 2008 fuel crisis, when carriers also reduced speeds to save fuel. The impact on transit times is expected to be minimal, much like the “lean and mean” logistics of the 1990s. The difference will be felt in the carriers’ bottom line, not the shippers’ delivery times. The new normal is just a rehash of the old normal.
Slowing Down to Save Fuel
Carriers are taking a page from the past by reducing speeds to conserve diesel fuel. The move is part of a broader effort to reduce fuel consumption and lower emissions. The strategy is not new, but the current implementation is a response to the rising cost of fuel.
A Familiar Solution
The current move to reduce speeds is reminiscent of the 1970s “National Maximum Speed Law” that capped highway speeds at 55 mph to reduce fuel consumption. The law was repealed in 1995, but the idea of reducing speeds to save fuel has remained a viable strategy.
Lean and Mean Logistics
The 1990s saw a rise in “lean and mean” logistics, where carriers streamlined operations to reduce costs and improve efficiency. The current move to reduce speeds is part of this same effort to optimize operations and reduce waste.
The Impact on Shippers
Supply chain experts believe that most shippers will not notice the difference in transit times. The impact on delivery times will be minimal, and shippers will likely not feel the effects of the reduced speeds.
A New Normal
The current move to reduce speeds is part of a broader effort to reduce fuel consumption and lower emissions. The strategy is not new, but the current implementation is a response to the rising cost of fuel. The new normal is just a rehash of the old normal, where carriers adapt to changing market conditions to remain competitive.
Author: Evan Null
