Wednesday, July 9, 2014

Compressed Natural Gas Fuel (CNG): Why Haulers Are Using It and How It May Affect Your Business

Have you ever wondered how much diesel fuel it must take to power all of the garbage trucks that run residential and commercial routes throughout the United States? Have you considered how these emissions effect the amount of smog in urban areas, and the overall air quality? Have you paid exorbitant fuel surcharges to waste hauling companies to offset their cost as diesel prices trend upward?

It may interest you to learn that many garbage truck fleets in both the public and private sector are embracing compressed natural gas (CNG) as an alternative fuel source to diesel. In fact, as of June 2014, CNG was used as the primary fuel source for approximately 10% of the nation's garbage truck fleet, with more and more companies investing in CNG trucks as their diesel trucks age and become costly to maintain. Many of the big names in the hauling industry are converting to CNG fueled trucks for environmental and long-term financial reasons, including Houston-based Waste Management, Jacksonville-based Advanced Disposal (the largest privately held hauling company in the US) and Longwood, FL based Waste Pro. In 2012, Waste Management announced that over the next five years it planned to purchase 80% of CNG powered trucks, and by 2017 to have over 50% of their fleet powered by CNG.

Although CNG trucks initially cost more per unit than traditional diesel trucks, they save each hauler approximately $27,000.00 annually per year in fuel costs, which make them attractive for financial reasons. CNG is also a greener alternative to diesel fuel, cutting down the use of 8,000 gallons of diesel fuel annually per truck. There is no risk of fuel leaks, as CNG evaporates when it leaves the fuel chamber, and it cuts down on emissions by roughly 50%.  The recent phenomenon of "fracking," or deriving natural gas from deposits in shale, has provided an abundant supply of CNG, which in turn has contributed to the growing reputation of CNG as the preferred fossil fuel for many trucking companies across a variety of different industries. CNG powered trucks have also been noted as being quieter and less costly to maintain than their diesel-fueled counterparts.

So, with the offset in fuel costs to haulers caused by this mass exodus from diesel-fueled trucks to their less expensive cousins, have you seen your hauling costs dropping? Practically every business would answer with a resounding "no." In our experience, we have found most of the customers who sign on with us pay a minimum of 25% in fuel or other surcharges, and if not, this cost is built into their existing price. That is why Global Trash Solutions is leading the way for many businesses in using our combined purchasing power and expertise to cut the expenses of companies like McDonald's, Panera Bread, Burger King, and many others. Please call us today at (866) 760-8194 for information about how we can help you get the best price available for trash and recycling service.          


Image courtesy of FreeDigitalPhotos.net/ vectorolie 

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