In the November 4 episode of Loaded and Rolling, Michael “Mike” Precia, president and chief strategy officer at Fleetworthy, sat down with host Thomas Wasson to paint a vivid picture of the current challenges facing the trucking industry. According to Precia, there are two primary adversaries confronting fleets today: shrinking truckload capacity and climbing operational costs. Handling these pressures is difficult even for the best fleets.
The trucking industry has been burdened by rising costs in various sectors, including tolls and insurance premiums. “The cost of tolling has nearly doubled in the last few years, and some fleets have seen insurance premiums rise by as much as forty-three percent in just five years,” Precia said. Fleets face unavoidable expenses across the country, and the surging costs of tolling and insurance are emblematic of the broader financial pressures on the market. Many fleets are forced to seek cost-effective solutions wherever possible.
Partnerships play a crucial role in tackling these financial difficulties, according to Precia. Partnering with companies like Fleetworthy offers fleets the technology and support needed to manage costs efficiently.
Fleets have long trusted Bestpass for toll management, Drivewyze for weigh station bypass, and Fleetworthy for compliance management. Now, these strengths are united under the Fleetworthy name to deliver a full suite of solutions that drive fleet readiness.
“The benefit of Bestpass by Fleetworthy is we have the largest tolling network in the United States,” said Precia. “While tolls themselves might increase, you need to work and partner with a vendor that can help you avoid toll violations that can make that rising cost even more expensive to your carrier.”
As operational costs rise, trucking companies must adapt by leveraging technology. This approach not only aids in cost reduction but enhances safety and compliance. Drivewyze, another key component of Fleetworthy’s offerings, addresses weigh station stops and lineups with the nation’s largest weigh station bypass coverage. That means significant savings in fuel, time and improved driver experience.
“Drivewyze is partnered with all the major ELD providers in the industry,” Precia said. This integration, he says, allows clear notifications for bypasses on the device already in the cab and reduces the need for abrupt lane changes. That, in turn, lowers the risk of accidents while staying fully compliant.
This integration represents a larger trend within the industry toward using technology to streamline operations and reduce unnecessary costs.
Compliance remains a pivotal aspect of maintaining profitability and safety within the trucking industry. “There’s a difference between compliance and safety, but they’re highly dependent on one another,” Precia said.
Due to factors such as nuclear verdicts and increased risks on the road, insurance has also become an increasingly escalating cost burden for the trucking industry. The sharp increase means fleets need to adopt robust safety and compliance measures to mitigate risk and manage insurance costs effectively.
Fleets that prioritize compliance are more likely to enjoy lower insurance premiums and fewer costly accidents, which ultimately boosts the bottom line. “Compliance has a very tight connection to the safety in the cab for the driver, so the things that you do on the compliance side are going to lead to more successful roadside inspections,” Precia said. “That’s what happens when you’re doing all the things on the front end to make sure that you’re delivering a safe drive and route for the driver.”
Fleetworthy’s solutions aim to provide fleets with the tools needed to improve their compliance standings. From electronic Driver Qualification (DQ) files to consistent monitoring of the FMCSA and DOT regulations, these solutions help fleets stay ahead of compliance requirements.
“We say the quicker you can start building a culture of safety compliance, the better,” Precia said. A solid compliance record can significantly improve a fleet’s insurance profile and risk management, which can be a deciding factor in verdicts.
“You need to show a history of following the regulations and you have to have solutions and systems in place so that if you get audited you can show that you take compliance very seriously,” Precia said. “That’s where Fleetworthy comes in. It helps to partner with people to do the day-to-day blocking and tackling so that when accidents do happen, you can demonstrate that it’s not because you don’t take compliance and safety seriously.”
By taking advantage of comprehensive fleet management solutions, fleets can safeguard against unexpected expenses and improve overall efficiency.
Fleetworthy, through its triad of service lines, including tolling solutions, weigh station bypass technology, and compliance support, strives to provide fleets with the tools necessary for optimizing their operations.
Looking ahead, Precia noted that Fleetworthy is watching AI very closely.
“Our plan is to use AI in a responsible way,” Precia said. “The best way for us to utilize AI is when we can connect data sources and pieces of data and deliver more actionable information to our customers.”
Due to the nature of safety and compliance, that data has to be accurate and reliable. “We will be able to help fleets make decisions that are more proactive in mitigating future risk,” Precia said. “We have a three legged stool approach: we know and work closely with our technology, our people, and our data.”
The trucking industry’s battle on the fronts of capacity contracts and rising costs is daunting, but not insurmountable. Through strategic partnerships and a steadfast commitment to safety and compliance, fleet operators can navigate these challenges successfully. As fleets optimize operations and stay focused on compliance, they can not only protect their operations today but build a resilient foundation for tomorrow.
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