Until revenues rebound, carriers are doing whatever it takes to lower costs, especially the most volatile cost of all — fuel.

White Oak Transportation and Logistics, a Decatur, Ala.-based truckload carrier, uses a program from Simons Petroleum called the Shipper Solution to flat-line its fuel costs. White Oak signs term agreements with Simons to buy a certain number of gallons. This fuel “hedge” is purchased on credit. As the gallons are pumped from Simons’ Pathway fuel network partners, the pump price is reconciled against the hedge and settled based on the term agreement.

This program enables White Oak to bill its customers a flat per-mile rate for the gallons it consumes. For shippers, the benefit is to eliminate the variable fuel surcharge on orders it quotes today that deliver days, weeks and months later. Shippers can keep their profit margins intact should fuel prices rise before their orders ship.

“As a carrier, we are buying (fuel) at a fixed cost and selling it at fixed cost,” says Ryan Waller, White Oak’s vice president of operations.

While it may be impossible to completely flat-line your fuel and other operating costs, technology and fuel management programs at least make it possible to implement tighter cost controls and use information to maximize your savings.

Hedging your bets

The simplest form of managing fuel price risks involves collective purchasing, such as through a group fuel program or a buying cooperative. Several companies, including most vendors that supply fuel cards and fleet payment systems, offer a discount fuel network.

These vendors also offer information to help fleets make daily fuel-buying decisions. Wright Express customers have access to tools such as Fuel Price Mapping and Daily Best Fuel Price, says Bernie Kavanagh, vice president of corporate payment solutions, East.