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by Ankit Patel

3 min read

How Europe Transport Energy Management Works

September 10, 2024

by Ankit Patel

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European shippers have a strategic opportunity to enhance transparency and standardization in diesel fuel price calculations for transport contractors. It starts with understanding the cost buildup of their all-in transport charges. By analyzing the specific amounts in each fuel and freight category, shippers can gain valuable insights into their consumption to reimburse transport contractors appropriately.

Europe Transport Energy Management ensures fair and precise pricing, aligning with the pump costs faced by transport contractors. Moreover, it enables accurate tracking of transportation lifecycle emissions per the Global Logistics Emissions Council (GLEC) framework, enhancing your company's reputation as a responsible business partner.

While carriers may initially resist a program shift, the benefits favor them. Implementing weekly instead of monthly or quarterly adjustments, and tailoring by region or country rather than using the EU27 average, allows for accurate accounting of transport charges and country-specific taxes. With over 500 transport contractors already integrated into the program, this transition promises ease and efficiency.

The calculation

Europe Transport Energy Management gathers metrics such as origin-destination pairs, truck weight, and equipment type to determine the liters of fuel consumed per country. After the calculation is completed, both you and your transport contractors will receive an accurate transport charge for that movement. This charge includes the exact amount of fuel consumed and any applicable country-specific taxes.

The benefits

One of the primary benefits of Europe Transport Energy Management is its ability to provide fair and transparent pricing for both you and your transport contractors. By using actual fuel consumption metrics, there is no room for discrepancies or hidden costs in transport charges. Additionally, accurate tracking of transportation emissions allows you to confidently report on your transportation emissions baseline.

Implementation process

To successfully integrate Europe Transport Energy Management into your operations, a structured implementation process is essential. This process not only ensures a smooth transition for all parties involved but also maximizes the benefits of enhanced transparency and emission tracking.

Here are the key steps involved in the implementation process:

  1. Opportunity evaluation: You provide the data you have from across your network.
  2. Analysis: We will crunch the numbers and meet roughly 2 weeks later to review your opportunity.
  3. Strategy & communication: We share best practices on how to set your fuel strategy and create a communication plan, empowering you to define your network parameters and communication method.
  4. System integration & fuel reporting: We connect with you and your IT team to create and execute a data exchange plan between us and your existing technology process.

By embracing this comprehensive approach, you can significantly enhance your operational efficiency, strengthen your commitment to sustainability, and develop mutually beneficial carrier partnerships.

Enhance operational efficiency and transparent transport charges with Europe Transport Energy Management

Europe Transport Energy Management presents a forward-thinking approach to transport charges and emissions tracking that benefits all parties involved. As transportation continues to evolve under stringent environmental standards, shifting revenue from an all-in transport cost to fuel and freight charges is not a concern but rather a strategic adaptation that reflects true operational costs. This transition enhances clarity and fairness in pricing and improves relationships with transport contractors.

To discover how Europe Transport Energy Management can enhance your operational efficiency and foster transparent transport charges, we invite you to schedule a meeting with our team. Let us answer your questions and tailor a solution that meets your specific needs.

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