Benefit

Several carriers reported that on-board monitoring systems enable carriers to increase loaded mileage by 9 to 16 percent, decrease operating costs, and save drivers time in reporting their status to dispatchers.


January 1992
Fenton,Missouri,United States; Lerner,Colorado,United States; Green Bay,Wisconsin,United States; Minneapolis,Minnesota,United States; Indianapolis,Indiana,United States; Dundas,Ontario,Canada; Ottawa,Ontario,Canada


Summary Information

Benefits reported from several carrier operations include the following:
  • Telesat Canada estimates use of its system will increase loaded mileage 9 to 16 percent and reduce operating cost $.12 to $.20 per truck mile.
  • Schneider of Green Bay, Wisconsin, reports that the elimination of driver check-in telephone calls saves approximately two hours per day resulting in a driver salary increase of $50 per week.
  • Trans-Western Ltd. of Lerner, Colorado notes that drivers are able to drive 50 to 100 additional miles per day, and driver turn-over has decreased from 100 to 30 percent.
  • Frederick Transport of Dundas, Ontario, Canada, estimates a reduction of $30 (from $150 per month) in telephone charges, a 0.7 percent greater load factor and a 9 percent increase in total miles.
  • Best Line of Minneapolis, Minnesota, estimates a $10,000 per month savings since 300 drivers previously lost about 15 minutes each day waiting to talk with dispatchers.
  • Mets of Indianapolis, Indiana, performed tests that showed vehicle utilization increased by 13 percent.
  • United Van Lines of Fenton, Missouri, claims that the ability to track and recover stolen vehicles is expected to reduce theft insurance premiums.

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Source

Estimating Cost Savings From Advanced Vehicle Monitoring and Telecommunications Systems in Intercity Irregular Route Trucking

Author: Hallowell, S. and E. Morlok

Published By: University of Pennsylvania

Source Date: January 1992


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Benefit ID: 2000-00113