Schneider National, Green Bay WI, is encouraging its owner-operators to drive efficiently by providing them a payback for lower mile-per-gallon usage, according to Schneider information.
To illustrate its fuel program launched in 2001, Schneider gave an example: "Assume that an owner-operator averages 6.8 mpg and is purchasing fuel at $4.502 a gallon this week. Through Schneider’s Fuel Protection Program, the owner is compensated an additional $0.5025 per mile--the figure Schneider has determined to correlate with fuel costs ranging between $4.500 and $4.549 per gallon--over and above the regular mileage rate. This owner-operator is now receiving $3.417 toward the cost of each gallon of fuel. As a result, the owner-operator’s net fuel cost is $1.085 per gallon.
“A high number of our owner-operators are driving for efficiencies and improving their miles per gallon," said Mike Bethea, Schneider’s director of operations for owner-operators. "These smart driving techniques enable them to take full advantage of the Fuel Protection Program and receive relief from high fuel prices. Every one of our owner-operators has the opportunity to realize a great cost savings with our Fuel Protection Program.”
The program is designed to give owner-operators the financial support they need to remain successful. The protection increases the higher fuel prices go. Each time the Department of Energy’s average price jumps, Schneider’s Fuel Protection Program per-mile payout increases by a corresponding rate and at an increased compensation rate.
Schneider said that due to customer needs, the carrier plans to grow its owner-operator fleet by 450 units before the end of 2008.