Rising Fuel Costs Leave
Truckers Fuming
Survey says: Majority of truckers agree that fuel costs are a top concern
but differ greatly on how to address the problem
MAYFIELD VILLAGE, Ohio — Feb. 4, 2008 — Fuel "drives" the trucking industry, and truckers are feeling the pinch at the pump now more than ever. In fact, diesel fuel costs have increased nearly 85 cents a gallon in the past year.
A recent survey by commercial auto insurer Progressive found that 69 percent of truckers say fuel costs are their most concerning business expense.
To offset these costs, truckers have tried:
- Downsizing staff (16 percent)
- Lengthening their workdays (12 percent)
- Taking fewer vacation days (8 percent)
But while many truckers are taking serious steps to offset costs, a surprising 41 percent say they've done nothing.
"When times are tough, simple things like keeping up with regular vehicle maintenance and shopping around for insurance can save truckers hundreds of dollars," says Ken Bowman, with Progressive's commercial lines group.
While insurance is also a concerning business expense, the survey found that truckers don't shop around for better rates very often:
- Nearly half say they haven't shopped for insurance in over a year; and,
- a quarter admit they haven't shopped in more than three years, if ever.
Bottom line: Regardless of what kind and how many trucks you own or operate, regularly reviewing business expenses like insurance costs can save you money and keep your business moving forward.
About Progressive
The Progressive Group of Insurance Companies, in business since 1937, is the country's third largest auto insurance group and largest seller of motorcycle and personal watercraft policies based on premiums written, and is a market leader in commercial auto insurance.
Progressive is committed to becoming consumers' #1 choice for auto insurance by providing competitive rates and products that meet drivers' needs throughout their lifetimes, superior online and in-person customer service, and best-in-class, 24-hour claims service, including its concierge level of claims service available at service centers located in major metropolitan areas throughout the United States.
Progressive companies offer consumers choices in how to shop for, buy and manage their auto insurance policies. Progressive offers its products, including personal and commercial auto, motorcycle, boat and recreational vehicle insurance, through more than 30,000 independent insurance agencies throughout the U.S. and online and by phone directly from the Company. Private passenger auto products and prices are different when purchased directly from Progressive or through independent agencies. To find an agent or to get a quote, go to www.progressive.com.
The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR.
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Ken Bowman is available for interview.
Did You Know ...
According to a survey of trucking industry professionals conducted by leading commercial auto insurer Progressive
Issues Management — Pain at the Pump
Top five most concerning business expenses facing the trucking industry:
- Fuel Costs (69 percent)
- Vehicle Costs (33 percent)
- Vehicle Maintenance (30 percent)
- Employee Wages (29 percent)
- Vehicle Insurance (26 percent)
Technology upgrades (12 percent) are the least concerning business expense.
Top three most important issues facing the trucking industry:
- Fuel costs (66 percent)
- Hours-of-Service Rules (9 percent)
- NAFTA (7 percent)
Half of all truckers say technology upgrades and electronically shared driving logs rank at the bottom of their list of important issues.
Fueling the fire
Although the majority of respondents say fuel costs are the most concerning business expense (69 percent), when asked how they've responded to these costs, 41 percent say they've done nothing.
Many truckers reported taking steps to deal with the cost of fuel and it seems that the type of truck they drive influences the steps they are willing to take:
- Tow truck drivers are most likely to downsize staff (36 percent), while tractor-trailer drivers are least likely (16 percent).
- Tow truck drivers are most likely to extend their work day (21 percent), while light and local truck drivers are least likely (12 percent).
- Tow truck drivers are the most likely to take fewer vacation days (14 percent), while light and local truck drivers are least likely (5 percent).
- Dump truck drivers are most likely to reduce fleet size (25 percent), while tractor-trailer drivers are least likely (14 percent).
- But, dump truck drivers are least willing to brown-bag it for lunch (8 percent), while tow truck drivers are most willing (14 percent).
Regardless of the type of truck, it seems that less is more:
Surprisingly, fuel costs are most concerning for companies that own one vehicle (52 percent) and least concerning for companies that own four to nine vehicles (6 percent).
What's the alternative?
The majority of truckers (81 percent) say they don't use any kind of alternative fuel to power their equipment.
Of those who do use alternative fuels, biodiesel is the most common (11 percent), followed by ethanol (6 percent) and natural gas (3 percent). Solar energy is least likely to be used (less than 1 percent).
Shop 'til you drop (for commercial auto insurance that is ...)
Why shop at all?
- One in four respondents cite insurance costs as the most concerning business expense they face.
- Nearly nine out of 10 truckers would like more control over the cost of their commercial auto insurance.
How often do you shop?
- Thirty-eight percent of all respondents have shopped for commercial auto insurance in the past year.
- Nearly half of respondents haven't shopped for a better rate in over a year.
- A quarter of all respondents admit they haven't shopped around for commercial auto insurance in more than three years, if ever.
- Twelve percent have never shopped for commercial auto insurance.
Top three reasons truckers shop for commercial auto insurance
- To get a cheaper rate (31 percent)
- The policy was about to renew/expire (31 percent)
- To compare rates (30 percent)
Who shops more?
Light and local truck drivers (40 percent) are more likely to have shopped around for vehicle insurance within the last 12 months, while tractor-trailer drivers (13 percent) top the list of those who never shop.
Forty-two percent of office managers have shopped for commercial auto insurance in the past year compared to 37 percent who own/operate their trucking business.
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