Heavy Haul Loads

Natural Gas Is the Latest Buzzword in the Heavy Hauling Industry

Natural gas instead of diesel is the fuel commonly being used in heavy trucks. The companies in the business of heavy haul loads across Canada find it not only an environment friendly option but also a cheaper option that makes a huge business sense. While diesel costs around $4 per gallon, natural gas comes a dollar cheaper.

The rising diesel prices

Diesel prices have been rising over the years putting the heavy haul loads industry in a difficult business environment. The volatility in diesel prices is a major cause of concern in the industry according to Brad Meyer, NevCal Trucking President. In addition, there is a limit on the surcharge that trucking companies can add to the bills presented to their customers. When diesel prices crossed $3.50 per gallon, trucking companies were compelled to add fuel surcharges that customers complied with without resistance.

However, the future seems uncertain for the heavy haul loads industry as far as the price of diesel goes. There is no certainty in the rate and frequency at which diesel prices are rising. The uncertainty in price rise makes it difficult to conduct business. One of the important considerations to conduct business smoothly is budgeting and revenue which get affected with price volatility.

Natural gas alternative

As against the volatile diesel price, natural gas according to several heavy haul loads industry experts is a far better option. The regional transport companies may switch over to the natural gas alternative to hedge against the volatile diesel prices. Trucking industry experts are aware of the difficulties in adopting the natural gas alternative.

However, since natural gas is a greener alternative that comes several times cheaper than diesel, it is only a matter of time before heavy haul loads companies adopt this alternative. Many industry experts are hopeful that there is definitely one day when most trucks will make the switch.

Although there are infrastructural constraints in making the switch to natural gas today, the rewards of natural gas as fuel can be hugely beneficial. The cost of running the business might reduce considerably. However, the social and environmental benefits are the most rewarding incentives for running trucks on natural gas.

Problems ahead

The natural gas alternative is promising enough and every one from heavy haul loads companies to private vehicle owners would like to adopt it as soon as possible. But there are considerable challenges and constraints ahead. According to many trucking industry experts, natural gas delivery infrastructure is not quite widespread. This is a major constraint coming in the way of the trucking industry. There are several more difficulties ahead of the wholesale adoption of natural gas as an alternative, even as advances in the fracturing processes have considerably reduced the price.

It costs $30,000 for a truck to make the switch to natural gas. The installation of fuel tanks with larger capacity accounts for a major portion of the cost. The heavy haul loads companies have currently two options with natural gas – LNG and CNG. While LNG is about 60 percent as dense as diesel, CNG is only 25 percent as dense. In other words, larger space for storage tanks will be needed whether the switch is made to the LNG or CNG. In addition, there are not many retail fuel filling stations on highways.

In view of the rising diesel prices, natural gas appears to be the most beneficial alternative for the heavy haul loads companies. It is not just the cost, but the environmental benefits that make it a good business proposition. Contact LTA Logistics for all your heavy hauling needs.

 

 

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