Consulting firm brings fuel price management model to trucking industry
March 15, 2014
NASHVILLE, Tenn. -- Stewart-Peterson, a fuel price management company that negotiates fuel deals on behalf of its clients and provides hedging strategies to protect against commodity price volatility, is moving into the trucking industry.
NASHVILLE, Tenn. — Stewart-Peterson, a fuel price management company that negotiates fuel deals on behalf of its clients and provides hedging strategies to protect against commodity price volatility, is moving into the trucking industry.
The company has been providing its services to the agricultural industry and others for nearly 30 years. It was at the Technology & Maintenance Council meetings to mark its launch into the trucking industry.
“We’re new to this space,” Rob Joyce, commercial business consultant with Stewart-Peterson told Truck News. “Fuel price management is what we do. We work with fleets to manage their fuel costs, help them with forward contracting, making decisions and executing strategies.”
The company negotiates fuel supply deals with all the providers and then determines the best times to lock down prices via contract.
“We’re kicking, scraping and scrapping for pennies on every gallon for every client we work with,” Joyce said. “It’s an industry of pennies and it can make a big difference if you save a couple cents per gallon. A lot of what we do is strategy-driven. What strategies can we put around it so that we don’t get dinged if it goes up and if it goes down, because we have more supply than we can deal with, how do we participate in that, too?”
The company is currently providing its services to several trucking companies in the US. It isn’t yet working with any Canadian carriers, but Joyce said it’s willing to do so. Ideally, the fleet would consume at least 42,000 gallons of diesel per month to see significant savings. Stewart-Peterson charges a consulting fee to the carrier, but Joyce said it’s usually significantly less than the fuel savings achieved.
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