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December 2011
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September 2011
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Greetings!
It's hard to believe summer is basically over. Kids are back at school. Hot Days, will soon be replaced by cooler and changing weather in most parts across the country, in just the next couple of weeks.
A crazy summer it has been with the weather. At this point let's hope the rest of the year is fairly "normal" when it comes to weather. Kids are back in school, so make sure you look out for them. Also, if your company or family doesn't have a texting while driving policy, it's time to put one in place.
Let's take a peek at what diesel fuel prices did over the summer time. On June 13th when summer started for most people across the country, the DOE diesel fuel price was $3.954 a gallon. As of September 6th DOE diesel fuel prices have gone down to $3.868 a gallon or down 2 percent.
Relax; if you need anything for fuel, just reach out to 267-482-6155, we are here to help.
Regards,  Glen Sokolis
President
267-482-6160
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Fleet Fueling Cost to Go Higher in 2012?
That would be a big question when it comes to your fleet fueling budget for next year. At this point it is very difficult to say what is going to happen with diesel fuel prices or anything else in 2012. We do know that 2012 is an election year, which usually means the political side that has the power, doesn't want to screw up. The side that doesn't have the power wants to do a few things different to get the power. Read More |
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To Hedge, Or Not To Hedge? That Is The Question
What is hedging? It's a financial instrument to buy something in the future at a given price. In this case, we are talking about diesel fuel prices. Why would you want to purchase fuel today for the future? As this article is written, diesel fuel prices have been all over the map the last 6 months. Maybe some companies want a little predictability. Could they get lower? Sure. Could fuel prices go higher? Bet on it! Read More |
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Fuel Cards Expand Beyond Fill-Ups Recent advances in fuel card technology make it possible for fleets to do everything from catching fuel thieves to instantly accessing massive amounts of driver data in real time. For metropolitan fleets, the most in-demand benefits fall in the areas of instant data access, fuel-theft prevention and the ability to negotiate volume discounts with local providers.
Glen Sokolis, president of the fuel-management consulting firm Sokolis Group, Warrington, Pa., said that newer fuel card programs are simplifying the process of using - and getting information from - the cards.
"Several cards now provide training on their systems, allowing a fleet manager to do all account maintenance, including suspending a card or changing a card's restrictions in real time," Sokolis said. "In the past, you had to call customer service and wait for the systems to update. Now, with the proper identification, you can review and manage your account from any computer with Internet access." Read More |
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Sokolis Solutions
Control Your Fuel Variables
Visit: www.sokolisgroup.com for help
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August 2011
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Greetings!
How Hot is it in most of the country? Wow, what a hot summer for weather and diesel fuel prices. I hope your summer has been going well.
The price of fleet fueling hasn't been doing much. Up and down slightly in a fairly narrow range for diesel fuel prices and gas prices.
Things look like they will stay this way for a little while but be prepared, it now looks like once we get closer to winter, diesel fuel prices will be increasing. Let's hope the guys on Wall Street are reading the charts wrong.
Use sun screen and enjoy the rest of the summer.
Regards,  Glen Sokolis
President
267-482-6160
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Fleet Fueling Prices Creep Up As Debt Ceiling Looms
The U.S. debt ceiling has caused much uncertainty around the world including your fleet fueling prices. The stock market has taken a beaten, consumer confidence is down and your diesel fuel prices have gone back up over the last month. A month ago diesel fuel prices were 5-10 cents less per gallon and gas prices were 10-18 cents less per gallon. With the debt ceiling, as this article is being written on Monday, August 1 in the AM, there is a deal in place that still needs to be passed. If it is passed what will that mean to your price of fleet fueling short term and long term? At this point it is difficult to say. Let's look at some facts that could make a difference:
As always something is happening with fuel prices and it is important to stay on top of what is going on with a good fuel management company. |
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Read these articles about what others are saying about diesel fuel prices and fleet fuel management.
$120 Oil-What Are the Chances?
OPEC: Weak World Economy to Curb 2012 Oil Demand
Oil Climbs After Obama Says Congressional Leaders Agree to Debt-Limit Deal
GM, Ford, Toyota Agree to Double Fuel Economy to 54.5 MPH on U.S. Vehicles |
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THANK YOU
KCI Insurance for the webinar. KCI Insurance is a leader in truck insurance.
Contact: Ron Cooperman
800-486-9278
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THANK YOU
Kreisher Miller for the guest speaking arrangement!
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Do YOU Need Fuel Help?
Looking for away to audit fuel invoices? Reduce fueling costs?
Call 267-482-6159
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July 2011
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June 2011
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Greetings!
Everyone at Sokolis Group hopes your May was well and you are your families are safe after one of the crazies weathers months that I can recall. If you don't have an Emergency Fuel Plan, stop waiting. Emergencies can happen anywhere and we can help. Reach out to Conor Proud at cproud@SokolisGroup.com be prepared.
My has time flown its already June. It's been a year since my brother in law, Jeff lost his battle with cancer. It has been almost a year since John Sokolis, (my Dad) Senior Account Manager has been battling cancer for the 3rd time over 7 years.
As I reflect on the tragedy from the terrible weather storms and illness in my family, it has continue to shed light on me that life is short. Enjoy life before it passes you by.
Regards,  Glen Sokolis
President
267-482-6160
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Fuel Management Help, Questions?
Call 267-482-6159
FUEL HELP
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Fueling Prices Up or Down?
The answer is yes. Now let me explain what I mean by that. Four weeks ago we saw crude oil prices plunge from $113 to $97 a barrel followed by a drop in diesel fuel prices at the pump, and in bulk fueling or mobile fueling where your company has a fixed margin over a benchmark price. Gasoline pump prices took a bit longer to go down, but they did, if only just a little bit. Then, as we check prices again now, crude oil is back up to $100 a barrel. So, what gives? Read More
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Be a Fleet Fuel Superhero!
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Pump Pains, Why Gas & Diesel Prices Make Us Hurt
Listen. There is no question that most Americans are feeling pinched at the pump. Whether you are buying gas for your family car or diesel for your fleet vehicles, the higher fuel prices certainly hurt. But, why? Read More |
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Does Your Company need
DEF or Fuel Additve?
Sokolis Group has Pricing Consortiums.
Give us a call at 267-482-6158
for help and great rates!
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Who's Winning, You or Your Fuel Program
You and your fuel program should be working together in harmony. However, with diesel fuel prices going up and down like a yo-yo, and your work schedule getting busier, not easier, it probably feels like neither you nor your fuel program is winning. |
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Get LINKEDIN to some of our Staff
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May 2011
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Greetings!
Mayday, mayday!
As I was looking at my calendar for this month those words came to mind. Most people know that mayday is the universal emergency code word for distress. According to wikipedia, it derives from the French venez m'aider, meaning 'come help me'. And no wonder those words popped into my head, don't these inflated fuel prices have a lot of people screaming mayday? I'll get to that later....
But what I wanted to focus on for a moment are the important holidays in May that give us the opportunity to say thank to some select people who mean so much to all of us, yet who sometimes don't receive enough well deserved appreciation.
Make sure to put a big star on your calendar for May 8 -- Mother's Day and give some special attention to the moms in your life, or take a moment and reflect on the moms who may not be with us any longer, but who were there for us when we needed them, and who are always in our hearts. Then, on May 30, while you're enjoying a day off from work and Memorial Day grilling and chilling, make sure to give a very big thank you to all the courageous and brave people who serve our country in the military-- and especially acknowledge those who gave their life for our freedom.
Let's also remember that even if gas prices are over $4.00 a gallon, the United States is still the best country in the world! In April I had a chance to catch up with fleet representatives from all over the country at the NPTC (National Private Truck Council) show. What a great group of people. There was lots of discussion about how to make sense of the rising gas and diesel fuel prices and their impact on everyone's businesses.
But believe it or not, the vibe seemed to be that the economy is actually turning around. Directors of Transportation, Company Presidents, Fleet Managers from all different industries from car parts, tires, food companies projected a guarded optimism that as long as fuel prices don't go much higher, there will be brighter skies ahead of us.
Another observation I had was that there seems to be increased demand for quality truck drivers. Every fleet company that I talked to was worried about finding and keeping drivers. My recommendation would be to hire a recruiter or an outsource recruiting company to locate experienced, qualified drivers. And more importantly, hold onto your good drivers. Make sure to provide them with great pay, benefits, tickets to the ball game or whatever it takes to make your company feel special to them. You know that without dependable drivers your product is stuck on the dock or your loads of freight are going to some other company. We all know how expensive it is to hire, train and get someone working. You might as well do it right from the start.
Regards,  Glen Sokolis
President
267-482-6160
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Fuel Prices Continue to Go Higher, Is that Giving You the Jitters? I know last month I told you both gas prices and diesel fuel prices were going to go lower. Stay with me on this, fleet fueling will go lower. Right now we have speculation in many different markets going wild. Have you seen the price of your morning coffee. It is at its highest level per pound in 34 years. Why? The same reason fuel prices are up. Speculators are using coffee as a hedge against inflation and other market insecurities.
I know gas prices nationally are 23 cents away from their all time high. I don't want to disregard that because I bet almost 99% of us drive a gas engine vehicle and we are all feeling it as we pay more at the pump. I do want to focus more in on crude oil where gas and diesel fuel come from. Crude supplies again this past week had a build in inventory of over 2 million barrels in the U.S. Gas demand is down 2% from previous data points, no doubt that the price has something to do with that. Diesel fuel prices have been flat or at least as flat as $4.10 nationally can get you. (read more)
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Don't Be A Fuel Moron!
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Fueling Success
If you are a Fleet Manager, CFO, President, Owner or Purchasing Department at a fleet company, you should have a comprehensive approach to fuel management. Yes, fuel costs are killing everyone's budget, so now more than ever, doesn't your company deserve a comprehensive program that provides security of supply and improved economics of fuel buying?
Six keys areas should be examined.
With Sokolis Group that can help watch your company's fuel expense get lower and improve fueling operations. Sokolis Group has the time and expertise to help get your program on track and start saving you money. Contact us today at: cproud@sokolisgroup.com or (267) 482-6159. |
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Oil Price Driven by Fear,
Not Fundamentals: Analysts
The world's top oil exporter Saudi Arabia is "not comfortable" with high oil prices. Sure, higher oil prices put pressure on the global economic recovery. But at the moment demand is still there, and those price levels deliver the Kingdom additional budget revenues when spending commitments are growing. It gets better: Saudi petrochemical companies raked in forecast-beating first quarter earnings to yield a 51 percent growth in net income year-on-year, according to research by NCB Capital. The local stock market stands as the largest and one of the best performing indices in the region this year.
In February Saudi Arabia produced just over nine million barrels per day of oil. What's surprising is that the country cut its production output by 800,000 barrels per day in March citing "oversupply". The devil is in the details and the ambiguous geopolitical risk premium. Americans are paying $4 a gallon mark to fill up their tanks in many states, while the Saudis are revving away at just 60-cents-a-gallon. (read more) |
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Read more on
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Why Clients Partner With Us,
Watch Now,
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Fuel Management Help, Questions?
Call Now!
267-482-6159
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April 2011
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 4-11
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Fuel Management, Easy As Pie!
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Are Fueling Costs Ready To Explode or Implode?
I guess most would consider that a million dollar question...and that is getting off cheap! First of all, you don't have to worry about diesel fuel prices going up or down. Why? Because, they will. They will go up. They will go down. But even though the price of fuel is out of control, your company's fuel management doesn't have to be.
Take the example of Scott Claus, Director of Cardinal Health, a Fortune 17 company that improves the cost effectiveness of healthcare. He took steps to assure that his private fleet program was prepared with an expert, outsourced fuel management system. According to Claus, "With a private fleet in the top 100 nationally based on size, fuel is a major part of our operating budget. We started working with the Sokolis Group last year as one leg of a multi-legged strategy for controlling fuel costs.
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Read more on
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Why Clients Partner With Us,
Watch Now,
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6 Ways Increased Fueling Costs
Will Get You
I was reading an article the other day and it talked about increasing fueling cost and what it effects that you don't even know. I found the article to be very interesting so I thought I would share parts of it with you.
Oil shows up in thousands of places besides your car's fuel tank and engine. It's true that most oil is used as a source of energy in the United States and that's not likely to change anytime soon. The average barrel of oil yields the following: gasoline (42%), diesel (20%), jet fuel (9%), heating oil (4.5%), heavy fuel oil (4.5%), liquefied petroleum gases (4.5%) and other products (16%).
All you have to do to see the effect of changing oil prices is drive by a gas station. However, the effects are more far-reaching than what is immediately visible since petroleum permeates our entire economy. Here are some areas of the economy and products that are affected by oil prices.
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Fuel Management Help, Questions?
Call Now!
267-482-6159
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March 2011
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 3-11
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Don't Be a Fuel Moron!
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Our Diesel Fuel Prices & Fleet Fueling World Update
Fleet management budget savings might be hard to achieve in the upcoming months with many of the actions going on in the oil market. To get a sense of what might bold for your fuel management system in the upcoming few days and weeks, this article should provide you some insight to what is fueling the market.
Don't take too long to read the article because quicker than your fleet manager can use his fuel card, the situation is changing.
Higher gas prices and diesel fuel prices will certainly effect consumers fueling habits. What do fleet companies do when diesel fuel prices raise quickly. What measures will people take to lower fueling cost for fuel savings. While most fleet managers have no choice but to send trucks out on routes, are drivers doing everything they can do for fuel savings to help the company control its fleet management solutions.
Could it be that everyone's worries about low term, crazy high fleet fueling prices were nothing to worry about? It appears that Saudi Arabia is standing by its statements to product more oil. We are all saved from higher diesel fuel prices, right? Not so fast. Your fuel management better be in good shape or get there quickly. The world's balance of oil is very fragile. If the Saudi's make this oil up, who makes up the oil if this happens in another country. It's time to review your fleet management programs for fuel cards, fleet cards, mobile fueling, fueling audits...
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February 2011
Volume 2-11
January 2011
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 1-11
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Dear Reader,
Happy New Year! It's 2011 and it's time for this country to kick things into another gear. Let's start pushing this economy forward. I am sorry that the article about diesel fuel prices is not promising, but let's face it, when it comes to predicting any market, if it were easy we would all do it. And if we were all right, we wouldn't have to work. These are just thoughts in the article from what others are saying, and I want to keep our readers in tune. Sokolis Group as a company is hoping for a solid 2011. For all our clients that read this, we thank you for your continued business. For all of the others that read this that aren't our clients, give us a call and see if we can help you. If you want to catch up on anything that happened in 2010 with fuel management click here.
Regards,
 Glen Sokolis
President
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Happy New Year, Diesel Fuel Prices!
The good news about diesel fuel prices is they are only $3.294 per gallon, according to the Department of Energy's weekly report. Prices could be $4.854, like they were the summer of 2008. The bad news about diesel fuel prices is they are at the highest they've been all year.
The lowest cost for diesel fuel prices in 2010 was January 4 at $2.797, so we had almost a 18 percent increase. In my view, we are looking for the same thing to happen in diesel fuel prices in 2011. That would give us a price of $3.89. I don't know if it will get that bad, but let's look what is facing us for diesel fuel prices in 2011.(read more) |
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Do You Know Where Your Diesel Fuel Prices Are Going?
What is going on with diesel fuel prices? Let me try and give you my 2 cents but please don't shoot the messenger.
I am sure you have all been reading or hearing about the price of crude oil on its way to $100 and above and diesel fuel and gas prices headed to over $4 a gallon. We hear the same things and honesty don't know where the price of fuel will go.
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Sokolis Group Wants To Know??
How can we make this publication better for you, our readers?
We have over 7,000 fleet clients that our newsletter goes to, would you like to advertise?
December 2010
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Greetings!
Happy Holidays! The entire team at Sokolis Group wants to wish everyone a safe and happy holiday season. Doesn't it seem like just yesterday we were celebrating this holiday season? The year has been filled with a lot. Diesel fuel prices have done what diesel fuel prices always do, roller coaster. I think we are getting close to getting on a roller coaster that is going to have more climb to it than falls. The economy is getting better. Yes, I know not for everyone but it is certainly better than when the stock market was at 5,500 points. It took us a while to dig ourselves into this mess, it will take a little longer before we get out, but let's stay positive.
We have a couple of nice articles in this month's Holiday edition of Fuel Line. There is a really good article by a friend of mine Mike Buck, at MCB Fleet Management Consulting that can help your fleet management. We also have an article about fleet fueling policies. As the New Year approaches, it is always a good time to put a good program in place.
As some of our clients and readers know, it has been a trying year for the people at Sokolis Group. We lost my brother-in-law Jeff to cancer and John Sokolis, my dad, is battling the heck out of it. That is why you will see a few Jim Valvano quotes. If you don't know who Jim V was, visit www.jimmyv.org or go one better and watch this speech http://espn.go.com/video/clip?id=3118760. Let's all enjoy our family, friends, and co-workers because none of us is promised a tomorrow. Happy Holidays!
Regards,
 Glen Sokolis
President
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Winter Diesel Fuel Tips
By Mike Buck, MCB Fleet Management ConsultingIt seems every year the transportation industry faces new perils during the winter months and this year is no different. Currently the weather forecasters are predicting a frigid winter with less than normal snow fall. Among the challenges above and beyond the weather, fuel prices are inching higher again and most states and many municipalities have mandated idling restrictions. Here are a few simple tips to help maintain your equipment and fuel tanks.
1. Please be sure you have adequately treated the bulk fuel tanks for the temperatures you will be dealing with. Think in terms of where the coldest point the truck will run to and treat accordingly.
2. Block heaters are not designed to warm an engine. They are designed to maintain the heat already generated in the engine. Thus it is crucial that the truck be plugged in while the engine is still warm. (read more)
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A carefully laid plan will bring success to just about anything you do. With diesel fuel costs as high and unstable as they have been it's crucial that you have a fleet fueling plan. There are several "wins" in a comprehensive policy like lower diesel fuel prices. Of course the overall goal is to lower the total cost of fleet fueling. For everyone, putting together a program will take a lot of time and planning. Some fleet companies don't have people with this kind of time or experience when it comes to fuel management systems.
Where do you start? What do you do first? Here is a high-level review by Sokolis Group for you to implement and take action.
Fleet Fueling Information is key. If you don't have it, get it. To put any solid program in place you will need information daily, weekly and monthly to make critical money-saving decisions for your company. Someone in your company, or a fuel management company like Sokolis Group, needs to know this information inside and out, along with the ability to identify and question any information that doesn't look correct. (read more)
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On the twelfth day of Christmas,
my true love sent to me Twelve Fleet management solutions, Eleven fleet fueling locations, Ten fuel managers in need, Nine diesel fuel additives, Eight fleet fuel cards, Seven days of fuel savings, Six fuel auditors flying, Five fuel consulting experts, Four fuel cards, Three mobile fueling fuelers, Two fleet fueling cards, And lower diesel fuel prices for me. |
Fuel Cost Going Higher
Diesel Fuel Prices Budget Season
Additionally, you are getting accurate fuel analysis and fleet fueling information. We know a lot of the company's out there don't have a fuel manager or fueling expert on staff, so please feel free to give us a call 267-482-6155 or drop me an email at gsokolis@sokolisgroup.com.
November 2010
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 11-10
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Dear Reader,
Holy Cow or I should say Holy Turkey! It is already November. Have you thought about the winter fuel additive for your trucks yet? Better start thinking soon. You can always email me at gsokolis@SokolisGroup.com and we will try to help you out with our national diesel fuel additives discount supplier.
We have the results of the fleet management survey from last month in this issue. Over 500 fleet managers, CFOs, CEOs, you name it, responded and took the survey. Thank you.
Thanksgiving. Say it again and think about it for one second. Thanksgiving. Maybe this time last year I wouldn't have blinked either time saying it but for my family it has been a difficult year. I lost my brother in law, Jeff to cancer within 60 days of his finding out. John Sokolis (my Dad) who works for Sokolis Group just found out he has cancer for the third time and this will be by far the most challenging one yet for him. In this newsletter, there is a great charity that I help support, and the economy is still difficult, so I understand how hard it is to give. If you can't give to this one or the American Cancer Society, find out who might need a little more help than you or tell someone you know how much you appreciate them.
Regards,
Glen Sokolis
President
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Diesel Fuel Prices Getting To You or Bad Fleet Fuel Auditing?
Fleet Management: it is essential to audit your fuel purchases.
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Fuel Card Fraud, Don't Let It Happen To You To Your Fleet Management!
A crime that hit ATM machines over the past years is now hitting the fuel card industry. It is called white card fraud, in the fleet card business. Please warn your drivers. Here is how it works: The criminal puts a device over the top of the fuel card reader at the pump. The device looks like an upgraded or more durable fleet credit card reader. It is not; actually it is a small computer that reads your fuel cards information after you've swiped it. Some of these devices can work with WI-FI signals so they can grab the fleet cards information as it happens. In most cases the criminal comes back after a few hours, takes the device and retains your fleet fuel card information. Once they have gathered all of the critical fuel credit card information they will create a white credit card and place all of your information on it as if it were their own and provide them with fuel card features from your fleet management. (Full Story) |
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Fleet Management Survey
The biggest obstacle my company fears in 2011?
63% Economic Turnaround
9% Diesel Fuel Prices
8% Health Care
18% Not enough good drivers
2% Insurance Costs
Will hiring drivers be harder in 2011 than it was before the recession?
44% Yes
56% No
Over 60% of the people surveyed felt diesel fuel prices would be between $3.01 and $3.50 this time next year.
Will DEF (Diesel Emissions Fluids) be on all trucks in 10 years?
56% Yes
Of those surveyed over 61% feel they will be just keeping their heads above water in 2011.
40% No
4% Other |
People need food to eat. They are a non-profit organization and they really do a great job.
- Money - they can buy food in bulk cheaper than food donations but they will take whatever you have.We will make sure the money gets to the appropriate people.
- Food- if you work for a food company, they accept large donations of food.
- Delivery- you could donate a tractor trailer and a driver when a donor has a large amount of food but no way to transport it to the Philabundance location.
- Trucks - they currently lease 7 trucks, that is down from 8 as recent budget cuts forced them to cut back. Fewer trucks mean fewer deliveries to food banks, shelters, churches, and rescue missions. Higher truck leasing costs also means less money for food. They will accept donations of refrigerated trucks, free or reduced lease services and donated cars to help transport volunteer staff to the warehouse.
- Navigation Systems - this would enable the 7 trucks to locate new locations for food pick-up more efficiently.
- Time - if you're good at raising money, want to encourage team building through company-wide food collections, or can sort foods at the warehouse, they can use your help.
September 2010
| Greetings! Are You Ready For Some Football! Ok, how about are you ready for the economy to start moving? You're the companies that know firsthand if the economy is moving or not. When you are busier the whole country is busier.
Regards,
Glen Sokolis
President
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Your Diesel Fuel Prices & How Fuel Management Knowledge Will Help
In this day and age of high priced fuel fleet managers need to have a fairly comprehensive knowledge of the fuel market. This was not always the case. Years ago when diesel fuel prices were considerably less expensive than it is today, and market instability was a daily move in the wholesale market of less than a penny, the fleet manager considered fuel as just another operating expense. After all a price increase of less than a penny was not going to bankrupt his company.
Fast forward to the present now. Over the past few years we have witnessed daily moves in the wholesale price of fuel of 10, 15 and even 20 cents per gallon. Multiply that by the volume that many fleets consume on a daily basis and it adds up to real dollars very fast. Many people say that we have no control over the price of fuel. For the most part that statement is true. It is especially true for the small to medium fleet operator. They don't consume enough volume to negotiate discounts at truck stops, card locks, mobile fueling, or even bulk suppliers, unless they have some means to aggregate their volume with other similar operations. Large fleets have that ability and are courted by suppliers to purchase diesel fuel at their locations at a discounted price. In most cases, depending on the volume these discounts can be very aggressive. With that said there is some control over at least a percentage of the price of fuel being charged, or mark up, over daily wholesale prices charged by the supplier, vendor or retailer.
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Fuel Management and Seven Tips for Putting Together an Effective Fleet Fueling Program
People are always surprised to learn that over 1.5 percent of a company's fleet fueling budget goes to theft and that eighty-one percent of fuel thefts are an inside job, with the other nineteen percent being an outsider siphoning off fuel or using one of your fleet fuel cards without proper authorization.
Through the use of tools such as exception reporting and fuel purchase alerts, fuel managers now have the tools to enforce cost-saving policies quickly, not weeks after the fact. If a driver makes a purchase outside parameters set by the fleet manager, (buying premium rather than the specified regular) this information is recorded instantly and appears on a regular billing statement, along with the driver's name and vehicle number. Hours can make all the difference; as a fleet manager, you want to be able to quickly enforce your fleet fueling decisions.
We've all heard of "management by exception" and when you're dealing with hundreds, or even tens of thousands of fleet fuel transactions, it's really the ONLY way to go. For many, highlighting problem areas is the most cost-effective, accurate and efficient way to implement, manage and enforce a successful fuel management policy. With exception reporting, fleet fueling information is funneled through the company's policy parameters and sorted to show where, when and by whom fleet fueling policies are being disregarded. |
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Look Who Likes Sokolis Group
Sokolis Group is proud to be chosen as preferred fuel management service provider for UniPro Foodservice member companies.
UniPro Foodservice, Inc.® is the largest foodservice distribution cooperative in the United States. Comprising over 650 shareholder companies with over 900 locations, each distributor is independently owned, marketing the products and services provided by UniPro Foodservice. With a collective sales volume of over $58 billion, the buying power of UniPro enables its members to receive enhanced purchasing opportunities, thereby providing better pricing and a vast array of products and services to their customers.
UniPro members service accounts in all segments of the foodservice industry, including independent and multi-unit restaurants, healthcare facilities, schools, military feeding, and other mass-feeding operations.
In addition to marketing the most recognized national brands in the foodservice arena, UniPro members also exclusively market their own private brands.
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August 2010
| Greetings! It's been a fast moving summer so we only have a couple of short articles for you this month. With fleet fuel prices flying around, vacations coming and going, who has time to read Fuel Lines. Heck, for that matter who has time to write Fuel Lines. Enjoy this month's articles. Remember school starts soon so be extra careful out there once the kids start school again.
Regards,
Glen Sokolis
President
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Wow! My Fleet Fuel Card is Burning!
Every day we deal with thousands of fleet fuel transactions. Some fleet fuel card companies are better than others for customer service, discount deals, acceptance and information. We see this all of the time as we analyze fuel transactions for our fuel management clients. We are well aware of high diesel fuel prices and transaction fees that we see on a daily basis. How about the fees you pay when you pay by credit card and not cash?
Read Full ArticleThis issue happens a lot more than most of you think it does. If your company is not using a fleet fuel card but instead using American Express, Visa, MasterCard, or Voyager, to name a few, you are probably paying more than the posted price sign in front of your favorite truckstop. The sign out front is for cash customers. The credit card price can be anywhere between 5-20 cents more per gallon on your diesel fuel prices. |
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Mobile Fueling to a Better Fuel Management Solution
If you are exploring ways to improve your fuel management program, mobile fueling could be the right solution for your fleet fuel planning process.
If the terms mobile fleet fueling, on-site fueling, mobile refueling or wet hosing don't ring a bell, let me elaborate. When your fleet is parked off hours, a fuel truck drives to your location and fuels your fleet of trucks right where they are parked. This practice has become more popular every year. Why? Your company can save a lot of money on drivers' costs by not having to pay them to fuel the vehicle. Read Full Article |
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Jeffery Boylan Family Fund
I want to thank everyone that made a contribution to my brother-in-laws fund, who passed away last month.
The family was really left with nothing. Any contribution you can make would be very helpful.
If you can, whether it be $5 or $100 any donations to the Jeffery Boylan Family Fund which will help pay for his 2 children to finish college, would be greatly appreciated.
Checks can be mailed to: 5 Windrose Circle, Doylestown, PA 18901.
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July 2010
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 7-10
In this new world of ULSD, BioDiesel, DEF, lower lubricity, and anti idling it's important that you have a fuel additive that helps you with these things. With bulk tanks click here sometimes it's a matter of just proper maintenance, for which most companies would get a failing grade.
The family was really left with nothing. Any contribution you can make would be very helpful.
If you can, whether it be $5 or $100 any donations to the Jeffery Boylan Family Fund which will help pay for his 2 children to finish college, would be greatly appreciated.
Checks can be mailed to: 5 Windrose Circle, Doylestown, PA 18901
DOE Prices
June 2010
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 6-10
Fuel Management issues talk to Greece they provided help last week to the fleet fuel markets helping drive down fuel costs by over $11 a barrel for crude oil and near 30 cents a gallon for diesel fuel. While the diesel fuel cost went down on the open market, at the retail station they actually went up another half cent a gallon, leading some to wonder why. We can tell what goes up fast, always comes down slow, especially in fleet fuel.
Transportation firms enjoyed seeing the crude oil prices die because they know in due time they will be seeing the benefits at the truck stop pump. Unfortunately, for almost everyone as crude oil went down so did everything else, including the stock market, taking a hit for almost 1,000 points at one period of time on May 6.
On Friday, May 7, I got to my office early expecting a very busy day with clients wanting to know about locking in fixed price contracts or anything else that they could do to take advantage of this market dip. I listened and watched (out my left eye) as they talked about how fast all of these trades were being made at one time and that there were problems with the trades. Investigation had already begun by Friday morning. A large chunk of the dip in the stock market that day had to do with computerized trading that have algorithmic trading plugged into the program to sell or buy if certain things happen. This can cause a real mess like we saw, especially if you owned Accenture and watched your stock fall to a penny.
The one interesting and very believable story from last Thursday was that some fat fingered trader mistakenly punched in the wrong number of shares, mis-typing billion instead of million, setting off a panic.
Many times during my fuel management career, I have written articles and have been a guest speaker about mistakes that are never caught in the fuel industry. It doesn't matter if you're buying bulk fuel, truck stop fuel, or mobile fuel, somewhere along the line someone's fingers had to enter or not enter something. In fuel, with so many transactions and such big numbers, it's easy for it to happen, so do you do fuel audits on all of your fuel purchases? Read on.
Friday begins about 7 a.m. with the phone ringing, with people asking for our fuel buying advice. I felt good that if you weren't covered by a hedge of some sort for the next couple of months, Friday was the day to do it. By 9 a.m., some of our clients had given us the approval to buy over 55 million gallons of fixed fuel pricing for them. This wasn't a couple of paper trades but wet fuel purchases across the entire country, one or two contracts at a time. Read More
Stay Hungry.
Stay Foolish.
May 2010
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 5-10
My original talk is seen below on this column. After what has happened in the last few days in the country I want to send out our best to the people in the Gulf Coast who are recovery from this major oil spill for years. It is incredible that we don't have a better back up plan when something like this happens. I was all for off shore drilling at one point. I think I will rethink that until they show me how to prevent what has happened from happening again.
We send our hopes out to the people in Tennessee. The rain fall that you have seen and the pictures on TV look like something from a movie. I do realize that the whole area down in the South is getting hit so I hope you all make it through the best you can.
We hope that the upcoming summer months are better for everyone. It seems like all parts of the country have taken a beaten from this weather at one time or another this year.
Regards,
Glen Sokolis
President
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Oil is trading at a 18 month high just under $85 a barrel
- Refinery utilization is at 80% compared to 2008 when it was at 90% and diesel fuel was $4.76
- 7% of all fuel invoice have a mistakes
- March 2009 to March 2010 diesel fuel prices increased 96 cents
- Experts are predicting 18 named storms during hurricane season this year
- Oil is traded on the NYMEX in U.S. Dollar, the dollar is not in a strong position and looks to get weaker as we borrow more money to fund health care and other projects, this means it cheaper for other country's to buy oil
- 2% of your diesel fuel budget goes to theft, 4% of your gas budget goes to theft, most of it is internal (your people stealing from you)
- Speculators like to trade hard when the U.S. Dollar is week as a natural hedge against inflation, this happened in 2008, when oil prices went to $147 a barrel
- China's reported April 1 that their economy is growing it's fastest since 2004. They will need more oil to handle that demand
- DEF and Bio Fuel will change your fuel buying, do you have time to keep up
- Over the last year according to the DOE, 2 refineries have shut down and several smaller plants have been idled, it would take a period of time to bring them back up
- Morgan Stanley projects close to $100 a barrel by the end of the year
- U.S. economy is recovering which will increase demand for diesel fuel
- OPEC just met and showed no signs of increasing production
EastCst = $ 3.127
CenAtl = $ 3.238
We have more information today on our fuel purchases than ever before, and this has allowed us to better control where we purchase our fuel, identify theft, and better plan for our consumption and financial reporting.
I would encourage other private fleet operators to explore for themselves the savings opportunities associated with using Sokolis Group services."
Scott F. Claus
Director, Transportation
Cardinal Health
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Are You Sure About That?
Below is an article from the Baltimore Sun. The article is in black print, comments from the Sokolis Group are in red print.
Theft of city fuel admitted
Public works driver resold more than 100,000 gallons of diesel
April 1, 2010
A former Baltimore public works employee has pleaded guilty to stealing more than 100,000 gallons of diesel fuel from the city and reselling it as part of a scheme that went unnoticed for a year and a half. (I can assure you that if they had a good fuel inventory control process in place this would have been caught within 2 months.)
Maurice Boone, 45, was found out Jan. 5, 2009, by a Baltimore County police officer who saw Boone filling several 250-gallon storage tanks with city-purchased diesel at a warehouse on Sparrows Point Road. The officer observed Boone while investigating a car-theft ring.
According to court records, Boone told police and an investigator from the city inspector general's office that the plot had been going on since 2007. The tractor-trailer operator would fill a city tanker from a pump at a landfill on Quarantine Road; make several rounds filling city vehicles as part of his job, then sell the remaining fuel for $1 a gallon to an associate named Jimmy, who would leave money for him at the warehouse rendezvous point. The associate was identified in court documents as James Wright, who is a co-defendant in the case. (At this point in time diesel fuel was selling for over $4.00 a gallon at retail locations. I believe they were selling the fleet fuel for more like $2.00 a gallon.)
Boone pleaded guilty Monday and will receive a suspended eight-year sentence and five years' probation, records show. He must also pay the city $187,000 in restitution, but Baltimore Circuit Judge Lynn K. Stewart delayed sentencing until July, a month after Wright's scheduled trial. (The Sokolis Group has nothing against Mr. Boone except you won't find us hiring him what we are confused about is 100,000 gallons at even $2.00 a gallon is over $200,000. The average price per gallon this fleet fuel over this time period had to be close to $3.00.)
Boone's lawyer, Marc Minkove, said his client - who was fired from his city job in March 2009 - will testify against Wright "if he's summoned."
A charging document pegs the total amount of diesel that Boone stole at 101,305.4 gallons, but public works officials said they weren't sure of the precise number. A spokesperson for the state's attorney's office said that the losses may have totaled as much as $1 million, but that prosecutors were unable to document the extent of the theft because of insufficient paperwork. (If public works officials don't know what the amount is like they say they don't, it is much higher than 101,305.4. How did they come up with the .4? They say the extent may have been close to $1 million so even at $3.00 a gallon for diesel fuel like we said above that would be a theft of at least 333,333 gallons. As a fuel management company, we would believe that number of 333,333 is more like the real number of fleet fuel stolen. As a fuel manager someone should have had some fuel inventory records to catch this amount of fleet fuel leaving the fuel tanks.)
"From our end, we never knew how much fuel the guy was actually stealing," said Robert Murrow, a DPW spokesman.
Murrow added that fuel prices were rising, so the agency did not notice the high cost of diesel invoices being charged to its office. (Sokolis Group agrees fleet fuel prices were rising but that has nothing to do with your fuel inventory and fuel management. Fuel inventory is just like any other inventory, goods come in and goods go out. If you have 500 gallons of fleet fuel delivered, you need to know which vehicles your fleet fuel went. If it only comes out to 450 gallons of fleet fuel and you don't have 50 gallons of fuel still left in the fuel tank, you have a problem. The fleet fuel pricing going higher is a matter of fuel auditing to make sure you paid the correct fuel price for what you bought. Most fuel managers at companies since that job is just part of many jobs don't do a very good job at it because they don't have access to the proper data to be able to understand the fuel market trends.)
Diesel hit a historic high of $4.76 per gallon the week of July 14, 2008, before dropping to $2.01 six months later, according to Department of Energy statistics.
The City should be ashamed of this. When there are fuel management companies out there that can manage all of your fleet fuel buying, fuel auditing, and fleet fuel pricing and checking for a whole lot less than $1 million dollars. For a couple of thousand dollars of month they could have been well service in fuel management by Sokolis Group or some other fleet fuel management company. Who knows who else is or was stealing fleet fuel from them? They don't track their fuel inventory, so it could be millions of gallons of diesel fuel that has been stolen. Maybe before Boone started to steal fleet fuel from them there was someone else that told Boone how to do it. Do you have someone stealing fleet fuel from you? Are you sure? Do you have solid fuel inventory records? How about the prices of fleet fuel are you paying what you should be or are your fuel prices higher than they should be? Do you know?
See our column Friday Fuel in www.truckinginfo under operations.
Glen Sokolis has been a guest on SIRIUS XM Radio, Road Dog Trucking, The Lockridge Report
We will be at the AAA National Conference June 8-10.
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HOT NEWS
B2 has made its mandatory debut in PA.
Yes, starting May 1 all on-road ULSD is to have 2% bio fuel, making it a B2 blend in Pennsylvania
Nothing to report as of yet B2 with any issues taking place so far with the product. We would believe that supply could be an issue in certain areas but nothing to report as of yet.
We would encourage truck fleets to use a Bio Fuel additive, especially in the beginning of this process. Please reach out to use and we would be happy to put you in contact with a quality suppliers of additives. Either call 267-482-6155 ext 103 or email lhermann@sokolisgroup.com.
April 2010
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 4-10
Let's talk about Project Earth and the Sokolis Group.
The Sokolis Group is a fuel management and consulting company with a staff of 7 professionals located in Warrington, PA. As a company we work with small and large companies nationally to help them with their fleet fuel buying, managing, auditing and process their fuel information better. Over the last year when fuel prices rose, we helped companies reduce their carbon footprint and how much fuel they consumed. These methods included:
- Having them govern the top speed of their trucks
- Truck engine shut down when loading and unloading to reduce idle time
- Improving driver behavior
- Better maintenance on trucks including tire pressure
While helping other companies reduce their carbon footprint, we realized that we didn't do a very good job ourselves. As Earth Day approaches here are some of the things we have done over the last 2 years.
Our steps have been:
- Energy Star office equipment
- Hybrid American company car
- Image storage on computer instead of printing
- Printing on both sides of the 100% recycled paper when possible
- Recycling paper, plastic, and cans in an office park which do not offer such services
- Low flow toilets
- Computer screen system shut downs
- Energy efficient light bulbs, zoned lighting and temperature set at 78 in the summer months, 66 during the winter
- Plants in all offices to provide oxygen and take away the carbons from office equipments, inks, and toners
- Purchased carbon credits to offset what a typical office creates in carbon for a year at www.carbonfund.org
- Electronic invoicing and receiving all of our bills electronically
As a company, we are not sure how it might separate us from our direct competition. In a world were everyone's business is cross compared to other industries, we feel we out distance ourselves with what we have done and continue to do everyday.
Reduce, reuse, and recycle.
US = $ 3.015
NewEng = $ 3.054
"Sokolis Group has done a wonderful job for our company. Their knowledge of the fuel supply chain is unmatched. They have been able to help us save a lot of money in our fuel procurement and improved our vendor services. I would recommend them to any fleet that does not have a full time fuel manager or who needs additional help on fuel related projects."
Charles Stevenson
Fleet Manager
Aqua America
April showers brings May flowers but you might already have water in your fuel tank!
Spring is in the air.....and there is water in my fuel tank!
This happens more than just in the spring time. You may have an above ground fuel tank or the saddle tanks on your truck may sit in the sun all day long. On your saddle tanks you have warm fuel running back through them, then what happens? At night time it gets cool and causes a little bit of a rain forest in your fuel tank.
The approach of spring seems to bring this problem of issues with water/moisture in fuel storage tanks the most. If your winter fuel supplier used an alcohol based winter additive (we hope they didn't) or a demulsifier to remove water from your diesel fuel the question you have to answer is, "Where did the water go?"
Well all of that water is now sitting on the bottom of your tank. So what are you going to do about it? You need to get that water out of your fleet fuel.
You have a couple of ways to take care of it. It is smart just to have good housekeeping anytime you are talking about fleet fuel or gas. A little extra effort put in on the front end saves you a lot of time and expense on the back end.
Option 1: Pump off the water. The best option but if you don't have enough water to pump off what are you going to do? How much is the cost to pump off the water and dispose of it?
Option 2: Forget about it. This could be very costly in the long run. ULSD has no natural biocide and eventually you will have an algae/fungus/mold outbreak that will stop your equipment or stop you customers, giving you a reputation for having "bad" fuel. The long term effects are tank corrosion and then tank replacement.
Option 3: Treat your tanks with a "drying" agent. Economical and can rid storage tanks of excessive water buildup with multiple treatments.
What type of drying agent to use? The use of an emulsifying agent will allow the water to move into suspension in the fuel and pass through the combustion process.
ULSD has more moisture than diesel fuels of old. Tank maintenance is now more important than ever. Tank maintenance is not just bulk storage either, equipment that sits for long periods can have the same issues of tank corrosion and "bugs".
The proactive approach of using a year-round fuel additive program can consist of two very effective programs:
Program 1: Early Spring-treat all tanks with a drying agent to remove moisture accumulation from the winter season. Follow up this treatment in late spring with a maintenance dose of an algaecide to prevent algae/mold/fungus growth as temps begin to rise. Follow up an additional drying agent treatment in late summer/early fall to remove excess water prior to cold weather to help fuel performance as temperature drop.
Program 2: Begin treating/using a premium package from your fuel supplier or purchase one yourself and treat your fuel year round. Some premium diesel packages have been shown to reduce emissions by as much as 45%, provide lubricity to critical fuel components for longer life, lower soot contamination in oil, and provide fuel economy increases all while helping to manage moisture in your tanks from bulk storage to individual units.
Like with most programs, you want to talk to someone who understands what you are trying to accomplish. Be careful, not all fuel additives are the same; you don't want to be buying something that is snake oil. If you deal with a professional fuel additive person or fuel consultant, you should get what you are looking for at a good price. Drive safe.
If you need help with this kind of fleet fuel program, we are happy to help. Since we leverage our buying for fuel and fuel additive we can probably get you a pretty good rate. lhermann@sokolisgroup.com
March 2010
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 3-10
Spring is in the air. Ok, maybe if you live below the Mason Dixon line it is but not here in beautiful Warrington, PA. What is in the air is cold still and a very unruly stock market and fuel market so far for 2010. We are basically 60 days into the New Year and have seen the stock market move 7% down and up and all over. The fuel market even more $83 a barrel to $71 a barrel and back up again for a more than 15% change. All in less than 60 days. Heck, trading days are fewer with the short February and holiday filled January. Diesel fuel is down at least as I am writing this article by 12 cents since the beginning of the year. Of course it's 57 cents higher than this time last year. Let's see what March brings us. In fuel and especially fleet fuel for your trucks, it's always interesting.
As I said in another article in early 2009, what kings want kings usually get. Does anyone remember that crude oil was around $40 a barrel at the time? King Abdullah of Saudi Arabia said the "fair price" for crude oil should be $70 to $80 a barrel. Since June 2009 the King has basically gotten what the king wanted. I don't know if we should expect that to change much until greed kicks in. What I do know is crude oil or the diesel fuel that you put in your trucks is one of, if not the most volatile traded commodities. As crazy as it trades, your fleet fuel vendors can and will charge you whatever they want if you don't understand the game or have time to watch.
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Yawning repeatedly
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Trouble keeping your eyes open
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Losing track of where you are
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Needing to stop short/ tailgating accidentally
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Head feeling heavy or sagging onto chest
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Drifting out of lane or onto rumble strips
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Feeling unfocused or dazed
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Slow reaction/missing traffic signs and signals
Check our website www.sokolisgroup.com. You never know what we'll blog about next!
US = $ 2.861
EastCst = $ 2.902
LwrAtl = $ 2.844
Midwst = $ 2.825
GulfCst = $ 2.819
RkyMt = $ 2.851
CA = $ 3.023
"Any organization that purchases fuel should, at a minimum, talk to Sokolis Group about how they can save them money. The truth is that Sokolis Group has answers to fuel questions that most organizations don't even know they should be asking."
Charon Planning
A few weeks ago Sokolis Group created a survey in Fleet Management, below are a few more interesting results we would like to share with you. Over 500 companies took part in the survey.
2) The number of fuel purchasing seminars you or your staff has attended in the past 2 years is:
Sokolis Response:
February 2010
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
Volume 2-10
If you haven't noticed for most of the country it's winter time. Being in Pennsylvania we are faced with the coldest month of the year in February. In January, I was in Miami, Florida and they set a record low of 29 degrees, a record that stood for 82 years. I was also in Atlanta; they had lows in the high teens when I was there. During any weather conditions it's most important to be alert to be safe. In wintery weather conditions a safe road can turn into a slippery hazard quickly. Take extra time, use extra caution and get to your destination safely. Remember someone is at home waiting for you. Stay warm.
What are they Now?
How many of you forget something that you were going to do today but you won't remember until tomorrow? I know everyone's hands would be raised if we were in a fleet fuel seminar. If you forgot what you were going to do today until tomorrow, do you remember where fleet fuel prices have been in the last couple of years?
Are you ready for the possible rising oil price storm that looks like it could hit your fleet fueling budget in 2010?
Let's take a step back and remind you where fleet fuel prices have been for both diesel fuel and gas. These are DOE national averages so they could be slightly higher or lower in your area. We have never been big fans of the DOE national average for fleet fuel. As one fuel expert once said to me, "It's like using a globe to find your house!"
Just 24 months ago diesel fuel prices were $3.387 a gallon, gas prices were $3.135 a gallon.
12 months ago diesel fuel prices were $2.299 a gallon, gas prices were $1.72 a gallon
January, 2010 diesel fuel prices were $2.882 a gallon, gas prices were $2.677 a gallon.
If you even remember that this happened, you would say ok, prices came down $1.10 from 2008 to 2009 and went up 60 cents from 2009 to 2010. That story in itself would be pretty dramatic seeing that a $1.10 decrease would be 33% reduction in fuel price from 08 to 09 and a 60 cent increase would be a 21% increase in fuel prices.
The story that takes place in the middle is crazy with fleet fuel cost. How about nationally peaking diesel fuel cost at $4.771 in July 2008. What about the low diesel fuel cost of $2.023 in March 2009. No, we didn't forget about gas that still powers most of our cars. Gas prices topped nationally at $4.099 in July 2008. They hit rock bottom of December 2008 at $1.642.
Yes, I can see the bulb in your head coming on and saying, I remember price swings but $4.099 to $1.642 a change of $2.457 a gallon in less than five months, wow. Wow for sure. Were you and your company carefully watching your fleet fueling cost at that time? I know you were worrying, saying, "what are we going to do?" But were you managing your fleet fuel costs?
Here we are one month into 2010. Are you going sit around wait until things going crazy. Remember most of us didn't think 2009 was crazy for diesel fuel prices but you did watch them go from $2.09 to $2.88 during the year. Almost 80 cents a gallon or a 28% increase in your fleet fuel costs. Remember that most fuel forecasters are predicting $95 crude oil prices in 2010. That would be over $15 a barrel more than where we were for most of 2009. The economy is going to turn around here, and there are 1.6 billion people in China wanting fuel.
Don't forget, plan your fuel management now while you remember.
- Check your tire tread
- Check around your windshield. Make sure you can see clearly
- Clear the snow. Remove snow from your lights and roof
- Recall the icy spots on your naormal driving route
- Brake appropriately
- Watch the gas tank. Keep gas tanks at least half fuel to avoid gas line freezing
- Pack it up. Have a sturdy ice scraper, small shovel, sand/kitty litter, de-icer, booster cables, blankets, flares or other warning devices, cell phone, water bottle and a flashlight with fresh batteries.
- Keep off the cruise control. Hitting an icy pack might cause your car to hydroplane and actually accelerate.
- Bring your patience with you on the road. Traffice will always drive slower than usual in inclement weather. Leave early and expect longer driving time. Do not tailgate another driver in bad weather.
EastCst = $ 2.83.2
NewEng = $ 3.017
CenAtl = $ 2.926
LwrAtl = $2.775
Midwst = $ 2.731
GulfCst = $ 2.744
RkyMt = $ 2.797
WCst = $ 2.876
CA = $ 2.950
"We heard a lot about the Sokolis Group from a few other AAA locations. Everyone had nothing but nice things to say about how much money they saved them and how timely they were with information. We reviewed their offering and couldn't be happier. More important is their people are terrific they take the time to make sure you understand and get what you need. Best of all, we have fleet fuel experts now in our corner."
Tom Renshaw
Sr. Manager, Fleet Services
AAA Auto Club South
Failing Fleets
During the third quarter of 2009 405 fleets failed. An astonishing 14,135 tractors were taken off the road. I repeat 14,135 trucks were taken off the road. That's an improvement from the previous years third quarter. Considering prices for fleet fuel were at an extreme level that isn't saying much.
Fleets failing can be for a number of reasons. It could be due to the industry that company is in, the state of the economy, high fleet fuel prices, or the demand of freight. Whatever the reason is many of them can be from poor fuel management. Believe it or not, but many trucking companies aren't watching their fleet fueling purchases as close as they should be. They set it and forget it. That is not how the oil industry works. Prices of fleet fuel are constantly changing, and you need someone watching on a daily basis doing fuel audits of your fleet fuel purchases to ensure you're getting the best possible fuel price. If you don't watch your fleet fuel vendors they might take advantage and increase their margins day by day.
Here's a perfect example. A fleet that Sokolis Group manages buys a lot of diesel fuel. They have sites all over the country and we have negotiated deals with those fleet fueling vendors. Just last month by doing our daily fuel audits of their fleet fuel, we found an overcharge of $748.04. We contacted the fuel vendor and immediately received a credit in that amount for our customer. This happens every month. If someone was not watching their fleet fuel purchases they would be spending more money for fuel then they need to be.
Not every company will succeed in their business, and that's something that every business owner risks when he starts it. However, the more attention and effort you put in will increase your chances of succeeding. Sokolis Group helps tons of fleets across the country save money on their fuel management. We have a great fuel management team, and we enjoy saving money for our clients buying fleet fuel. Don't let your fleet fail. Try our fuel management services and see where you could be getting charged to much.
January 2010
FUEL LINES
Critical News & Information for Businesses that Depend on Fuel and Fuel Services
Volumne 1-10
As 2010 is sure to bring us many different ups and downs in everyone's fleet fueling and fuel management programs. We decided to take a look at how crazy fuel management was in 2009. The old expression "you don't know where your going, until you know where you have been" rings true in my fuel management ears. Enjoy.
Glen Sokolis
President
If you have an idea or topic you would like to see discussed here or if you would like to contribute an article for future issues, please e-mail me at gsokolis@sokolisgroup.com
2009 Fuel Management in Review:
In 2009 things started off like a lamb and at times felt like a lion but we certainly didn't see any scary lions in fleet fuel buying as we did in 2008. The year started with National gas prices at $1.639 a gallon and diesel fuel at $2.405 a gallon, great numbers if you're a fuel manager overseeing your fuel management program.
It was also around this time that Barack Obama was sworn into the white house, becoming the United States 44th president and bearing the weight of the recession on his shoulders. The winter season of early 2009 unveiled a staggering amount of crude oil inventories, so much so that companies were leasing out tankers to store oil out in the sea. The price for a barrel of crude was around $43 a barrel. Things seemed to turn around slowly but surely.
For the early spring brought not only unmatched amounts of unemployment, but the gradual rise to $40. a barrel in crude oil. April saw a national average for retail gasoline at $2.04; this was amongst news of major car manufacturer Chrysler filing for bankruptcy and news of other vehicle manufactures discontinuing unpopular models flooded the papers. A few include the Saturn Sky and possibly the entire lineup, Isuzu Ascender, Hyundai Veracruz, Honda s2000 and Hummer H3. With the economy seemingly not back on it feet a look at oil was the only lifeline to a positive upturn.
Mid year arrived with oil above $60 a barrel and the stockpiles kept on building to 4.38 million barrels. With all the focus on the fuel industry it was a tough year too for the climate, getting on board to reduce carbon emissions was a goal of many but a success of few. The thoughts of emissions cap or tax weighted heavily on the minds of fleets as the a tax or cap would discourage the use of oil, and put trucking in the hands of newer expensive hybrid vehicles or retrofit current trucks with carbon reducing equipment. With a myriad of hybrid vehicles being tested amongst the general public, only a select few fleets have dabbled in the hybrid world. For example Smith Electric Vehicles just last week went a go with 7 all electric trucks, customers for these zero emissions vehicle include Frito-Lay, Staples and Coca-cola. However until any of these laws or regulations pass the fleet world will remain focused on fuel management.
This year has rounded itself out with August showing an increase of 20.2% in a matter of 3 weeks at one point. But as all things fuel related the markings go down as fast as they can go up. After months of a steady increase October saw a fall, and it was directly attributed to consumers driving less and cutting back on household energy use. It looks like the demand has fallen as the supply only increased. In fact Valero Energy Corp announced it was permanently closing its Delaware refinery, putting over 500 people out of jobs.
As the holidays drew near and people take the time to slow down oil has remained around the $70 mark, and 5seems to be holding nicely there as the inventories fell slightly, and sure while there was much traveling for the holiday there will also be speculation on the new year, after all 2009 did start at a low $43 and finished just under $80.
"You guys are doing well by us- can't think of anything that needs improvement."
David Platt
Vice President, CFO
Acme Corrugated Box Co.,Inc
Put Your Fleet Fueling Policy in Place for 2010
As a new year quickly approaches, it's an ideal time to review current policies that your company has in place. I can't think of a policy that can help your fuel management program better than reviewing what you are doing now for fleet fueling. And if you don't really have a policy, now is the time to start your fleet fueling program.
Establishing a fleet fueling policy makes sense. After all, fuel is usually the single largest variable expense for a fleet of any size. A fleet fueling policy-carefully planned, implemented and enforced can be a company's most effective tool in the battle to reduce unnecessary overspending. In this day and age, saving money and cutting costs are a great way to survive and to add to your company's bottom line.
We have talked about fleet fuel cards before, and the electronic capturing of fueling data at the pump through the use of electronic fleet fuel cards. By doing this, fleet managers now have timely, accurate data they can use to battle waste, abuse, theft and fraud. It is a very important tool in helping to control your fleet fuel spending. People are always surprised to learn that, on average, over 1.5 percent of a company's fuel budget is lost to fuel theft. We are talking about the kind of fuel theft that happens when employees at your company steal fuel from you. Employee theft accounts for 81 percent of the fuel that's stolen. The other 19 percent of the time, an outsider is stealing from you through siphoning or using your fleet fuel card without proper authorization.
If a driver makes a purchase outside parameters set by the fleet manager, such as when a driver buys premium rather than regular gasoline, this information is recorded instantly and appears on a regular billing statement along with the individual driver and vehicle number. Through the use of tools like exception reporting and purchase alerts, fuel managers can enforce cost-saving policies quickly, not weeks after the fact. Hours make differences, and as a fleet manager,you want to be able to quickly enforce your fleet fueling decisions.
We have all heard of fuel management by exception, and when you're dealing with hundreds to tens of thousands of fleet fuel transactions, it is really the best way to go. For many, highlighting problem areas is a very cost-effective, accurate and efficient way to implement, manage and enforce a successful fleet fueling policy. With exception reporting, fleet fueling information is funneled through the company's policy parameters and is sorted to show where, when and by whom fleet fueling policies are being disregarded.
Following are eight tips that will make your fuel management program more effective:
1. Once your fleet fueling policy is in place, the next step is to communicate the new policy clearly to every driver in the fleet. Let them know that all fleet fuel purchases will be monitored and that all exceptions, especially repeated infractions, will need to be justified.
2. Set up the desired grade of fuel for each vehicle. Every time a fleet driver fills the tank with a premium or mid-grade fuel, the company wastes as much as 10 to 25 cents or more per gallon. This can add a lot of money to your fuel management program, so make sure you have controls in place and are watching.
3. Enforce limits at the time of purchase. The most effective way to enforce a fleet fueling policy is to set limits so that purchases outside the limits are not even allowed. For example, if you restrict transactions to two per day, the third transaction will be declined at the point of purchase.
4. Restrict non-fleet fuel products and services. Many fleet managers find it helpful to place restrictions on the kinds of products drivers may purchase. These things could be soda, coffee, car washes, etc. This helps to control costs, quality and consistency.
5. Control the location, days, and time of day for fuel purchases. Frequent fuel purchases made with the company's fleet fuel card outside of business hours are a sure red flag of possible fraud and abuse. Make sure your drivers purchase fleet fuel only during business hours, look for fuel purchases that exceed fuel tank capacity, and eliminate multiple purchases in a single day whenever possible.
6. Mandate one or more fuel brands to help control quality, consistency and the cost of fuel and services your drivers purchase. Take a close look at fueling stations in your area, and select those that offer the best quality for the best price. Those that offer bio fuels and bio diesel can also help lower your carbon footprint, which is becoming a large national topic.
7. Encourage fleet drivers to buy fuel at locations with pay-at-the-pump. Drivers will save time and get on the road faster by fueling at only pay-at-the-pump locations. It will also further reduce any chance of non-fleet fuel purchases inside the store.
8. Most importantly, you need to account for every fleet fuel card every day. Losses can be staggering if just one card falls into the wrong hands. A termination of an employee may occur, or a truck gets put out of service. Be certain to account for those cards. At a small company the loss could be small, but at a large company the loss could top six figures with the rogue use of just one card. These figures are not made up; we've seen it. Losses like this can not only be eye opening to fleet fuel managers but also devastating to a company's financial stability.
If you want to make 2010 a winner for your fleet management program, it is critical for every fuel manager to look at your fleet, identify the areas where you have the most problems and work through them. Having a fleet fueling policy at your company will ensure that your fuel management program is in good shape for the New Year.
Results are In:
A few weeks ago Sokolis Group created a survey in Fleet Management, below are a few interesting results:
1. The biggest obstacle my company fears in 2010 is:
Economic turnaround = 58.6%
Price of fuel = 18.2%
Health Care 8.6%
Not enough good drivers = 6.7%
Insurance Costs = 5.7%
No response = 1.9%
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2. I believe that November 1st Diesel fuel prices would be:
$2.01 - $2.50 gal = 5.7%
$2.51 - $3.00 gal = 45.1%
$3.01 - $3.50 gal = 29.8%
$3.51 - $4.00 gal = 16.3%
$4.51 - $5.00 gal = <1%
No Response = 1.9%
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3.Besides fuel itself, the #1 item your company does to control fuel spending:
Driver Training = 42.3%
Routing = 37.5%
Auto.Tire Pressure Gauges = 1.9%
Automatic Trucks = 8.6%
Oil = 4.8%
No response = 4.8%
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4. My Fleet size is:
Less than 25 vehicles = 22.1%
26 - 150 vehicles = 28.8%
151 - 500 vehicles = 16.3%
501- 2000 vehicles = 16.3%
2001 vehicles or more = 13.4%
No response = 2.8%
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5. How does your company feel about government mandate use of Biodiesel?
For it = 33.6%
Against It = 52.8%
No Response = 13.4%
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6. If there was an easy way to reduce your carbon footprint, like using a fuel card, would you do so?
Yes = 67.3%
No = 22.1%
No response = 10.5%