"Fuel-Making Every Drop Count!" Michael Eggleton, Sr. President Raider Express Moderator: Susan Alt Senior Vice President, Public Affairs Volvo Group North America Jeff Brown Vice President of Driver Training Dutch Maid Logistics, Inc. Making Every Drop Count Introductions Spec ing equipment What you can see and what you can t Going beyond equipment to take advantage of smarter technology on the vehicle and wireless communication The impact of the driver Let s get started Making Every Drop Count Driver Strategies Reefer & Reefer Trailer Strategies 1
What you can see 4 Virtual Simulation Tools lets us see the air flow Computation Fluid Dynamics Analysis (CFD) Trailer Gap What you can t see Using Telematics to reduce fuel consumption Smarter electronics between the engine and the load Adaptive Gearing Truck Memorizing past roads New engine designs 2
and then there s more It takes a village..to make every drop count Greenhouse Gas (GHG) and Fuel Economy Phase 2 Regulation - Overview Phase 2 Regulation for reduced engine (tailpipe) CO2 emissions, and complete vehicle including trailers Proposed regulation published July 13, 2015; Final Rule sent to OMB June 5, 2016; Expect final rule to be publicly available ~ August 15, 2016 Regulation has increasing stringency levels for production years 2021, 2024, 2027 Anticipated* stringency, 2027 (baseline 2017): Engines: 5.5% Complete vehicle: tractors up to 24%, vocational 16 to 18% So long as the technology to meet the targets is not pushed on industry too soon we will all benefit Mike Eggleton President 3
Squeezing Every Drop Can we get to 10 MPG? Yes, but you can t just buy it. The Tractor Specs Fully Integrated engine/trans package from the manufacturer Volvo VNL 670, with full aerodynamics Gear ratios are set to provide maximum efficiency at 58 mph, with a governed speed of 60 mph 13L Eco-torque engine, 400 HP, 1450/1650 split torque Automated manual transmission, direct drive, economy shifter 2.50 RE ratio, in 6x2 configuration 209 WB, 45 BOC to trailer, 24 end of fairing to trailer Low rolling resistance Super single drive tires Bunk heaters (no APU s), no idle between 76 and 32 degrees Flow Below system 4
The Trailer Specs STEMCO Tails & Side Skirts Eco Flaps Modified door opening sensors Now substantial fuel savings available on new reefers So how do we get the whole fleet to 10 mpg? The OEMs give us about a.3/year. If we wait 5 years we ll get there. 5
Develop Telematics Today s most common programs are antiquated. Common features of: MPG; Cruise Control; Idle; and Top Gear are 10 years old. More advanced programs are being developed to include anticipation Throttle use and pedal position; power use; purchased MPG; and MPG by leg Fully integrated package including reefer tracking; tractor positions; HOS; Driver performance; and navigation Holy Grail of Telematics ECM Information Need OEMs to filter data at the ECM 150 data points available that describe driver performance and engine condition All of this can be fed into analytics programs like TABLEAU to find the common conditions that predict the best driver and engine performance, to allow for more advance coaching, predict breakdowns, and facilitate maintenance. Drivers are still the key: Coaching Pay Technology How do we get the worst to drive like the best? 6
Reward the Drivers All drivers get a very attainable fuel bonus of up to $.05 per mile Most fuel efficient driver(s) get the best trucks, effectively raising their bonus. All operations bonuses are directly connected to fuel mileage, so everyone coaches the drivers. Dutch Maid Logistics Jeff Brown, Vice President of Driver Training FUEL SAFETY MAINTENANCE FUEL SAFETY MAINTENANCE Fuel Safety Program - Overview Program started in 2012 To research & monitor driver s driving behavior Implemented bonus program on April 1, 2016 Increase in fuel mileage new & old equip Improved driving habits Safer operation of equipment Decrease in maintenance costs Less wear and tear on trucks Decrease in driver stress level Non-aggressive approach 7
Fuel Safety Program How it works Driver is monitored in 5 categories: 1. Progressive shifting: Measures their increase and decrease in speed 2. RPMs: Encouraged to run no more than 1500 RPMs 3. Speed: Best results if cruise control set at 62 MPH or less 4. Cruise control: Increases fuel savings & safe operation of equipment 5. Inter-Trip idle: Run APU when truck is stationary Goal is under 7% Fuel Safety Program Tools to measure Fuel Safety Program - Tools 8
Fuel Safety Program Fuel Bonus Driver Fuel Bonus Program Driver s average fuel mileage for the week All 5 categories that are monitored Driver given MPG goal based on assigned tractor Truck Type Current MPG Goal MPG Internationals 2012/13 7.00 7.80 Early Freightliners (Manual) 2012/13 6.90 7.60 New Freightliners (Automatic) 2014 & newer 7.40 8.30 New Freightliners (Manual) 2014 & newer 7.40 8.30 Volvo (Manual) 2014 & newer 7.40 8.30 Volvo (Automatic) 2014 & newer 7.40 8.30 Fuel Safety Program 10,000 MILES 7.4 MPG 7.9 8.3 MPG 1350 GAL. 50% 1200 GAL. $150.00/DRIVER 150 GAL X 2.00/GAL 300.00 $150.00/COMPANY $ 904 6.20 MPG -$ 150 Driver $ 754 Company 8.47 MPG Fuel Safety Program It works! Since started monitoring drivers: from 6.32 MPG to 6.79 MPG (April 2012 to March 2016) Since implementing program April 1, 2016 increased to 7.54 MPG 9
Fuel Safety Program- Example Here is an example of Charles improvement: Before Training After Training Average Speed 49 MPH 51 MPH Inter trip Idle 9.40% 0.40% Cruise Control 48.30% 54.20% High RPM's 65 Minutes 4 Minutes Progressive Shifting 70% 88% MPG's 6.70 8.25 Total savings after one month $ 550.51 Charles would get a bonus of $137.63 and would save the company $423.92. Charles drives a 2016 Volvo His goal is set for 8.3 MPG Fuel Safety Program Current Results Year MPG's Savings 2012 6.32 $ 2013 6.45 $ 75,389.93 2014 6.59 $ 153,252.80 2015 6.79 $ 258,915.72 2016 7.39 $ 506,329.11 *Since launched in April In the research and development year, there were no savings. Numbers based on the average miles for the month, nearly 12,000,000 miles per year. Let s Review.How are YOU going to make EVERY drop count? Spec the right equipment Invest in new technology Evaluate the system not one part: the vehicle, the shipper, the communications and the driver Incentivize drivers to leverage the benefits from the equipment and technology We will all benefit our business our families 10
Questions? Comments? Thanks for your attention! Brought to you by the: #TCARef16 11