It’s difficult to comprehend the vast interstate trucking network across the United States. Trucks are always on the roads, moving products and supplies from one place to another. Not only do the trucks need to be running efficiently, but the roads and infrastructure also need to be in place to ensure that everything arrives in a timely manner.
The American highway system is designed with efficiency in mind, especially when interstate fleets are utilizing good fleet toll management systems to optimize routes. This lifeline for commerce can come at a cost to maintain the fleet, and additional expenses can start to add up for fuel, tolling fees, and more.
If you are in the cross-country trucking industry, what are you doing to keep overhead expenses low so you can optimize profit margins? In this article, we are taking a closer look at some of the ways fleet toll management can make a difference in your organization.
Interstate Trucking and Managing Toll Payments
While there are many free highways that can be used across the country, there are times when it makes sense to utilize tolling booths. Even though there is a fee to pass through the checkpoint, access to different roads can be a good strategy for expense control.
This route optimization helps decrease time on the road and also reduces fuel expenses overall. Fleet toll management allows you to examine different options to ensure the best results while protecting your budget.
But the reality is that there can often be hidden costs to using toll roads. Not only do the drivers pay a fee every time they pass a tolling checkpoint, but if there are payment issues or missed invoices, then the expenses can start to snowball. If you have a lot of trucks covering long distances, then the costs can really add up – especially when late fees and interest costs start to come through due to missed payments.
The good news is that fleet toll management helps streamline your payment systems, reducing unnecessary late fees and hidden expenses. If you have the right system in place, your drivers can stay on the road, and you will avoid unnecessary costs when they move through toll stations.
Remember that toll violation avoidance is an important step to keep these expenses from eating into your profit margins. The trucking industry is competitive, which means that you need to maintain an edge in the industry. Managing your tolling costs is a great place to focus your time and effort, and fleet toll management has the proven systems in place to streamline your processes.
The Administrative Burden of Toll Payments
One factor to consider is how much administrative work goes into managing your fleet. Not only can tolling payments slow down your drivers because they need to sit in line and pay the fee, but there is often an administrative burden in your office due to staff members who are handling the invoices, sending payments, and more.
The good news is that fleet toll management uses automated systems as much as possible, helping to reduce administrative burdens. For example, in-vehicle transponders allow drivers to pass through pre-paid tolls without stopping, because the signal from the transponder records the transaction and everything is handled through your digital account.
This process reduces the amount of paperwork that needs to be handled in your office. Instead of making manual payments for the toll invoices, these costs are paid automatically through your fleet toll management system. Additionally, everything is paid on time, which reduces the risk of late fees and interest costs.
Ensuring Compliance at All Times
Compliance matters at all times, especially because any violations can result in expensive fines and fees. You need to make sure all drivers are trained on the proper use of toll roads, including how payments are handled. Also, transponders should only be used in the proper vehicles. Everything is tracked through cameras and automated systems – which means that violations will be flagged and fined if anything goes wrong.
The good news is that it’s relatively easy to avoid potential fines and penalties as long as you are following the rules and regulations. The most common hidden fees occur because payments are missed or a transponder is being used incorrectly. As long as your drivers have the correct transponders and you have a system in place to make timely payments, then your trucks can stay on the road without worrying about unnecessary or expensive fees.
FAQ
How to manage tolls for interstate fleets?
Using automated transponders and a fleet toll management system is critical. These software programs help you stay ahead of the toll payments. The data is helpful for analyzing routes and improving profit margins.
What are strategies for reducing toll costs for interstate trucking companies through tolling discounts?
If you are using a fleet toll management system, the provider can negotiate group discounts on your behalf. Thus, each toll pass will be cheaper than the normal rates.
How should I be optimizing routes to avoid tolls for interstate fleets?
While there are times when it makes sense to avoid tolls, this isn’t necessarily the best strategy to protect your profit margins. It’s important that you are looking at the overall picture, including fuel and time costs of taking an alternative route. Often, paying for the toll can save money overall.
How can I use technology to manage tolls for interstate trucks?
Two pieces of important technology are needed to manage tolls and payments. First, the appropriate transponder needs to be in the vehicle with the proper registration. Next, make sure the transponder is connected to the fleet toll management software you are using.
Do You Need Help with Fleet Toll Management?
There’s no need to reinvent the wheel when implementing a fleet toll management system. Instead of trying to create something from scratch, it makes sense to tap into a proven system that is already in place. Our team at Innovative Toll Solutions has designed the best solutions for trucking fleets. Contact us to learn more and discuss the benefits of toll management for your fleet.