Diesel Costs Are Spiking: How Cypress Drivers Fight Back

1 00:00:01,240 --> 00:00:07,960 $0.20. That's it. $0.20 probably isn't going to change your life. You 2 00:00:07,960 --> 00:00:14,640 probably wouldn't bend over to pick up two dimes off the pavement, but put those $0.20 on a gallon 3 00:00:14,680 --> 00:00:20,799 of diesel. Then multiply it by, I don't know, 750,000 gallons. 4 00:00:21,480 --> 00:00:27,920 Now multiply that by 12 months. Suddenly, $0.20 matters. 5 00:00:28,080 --> 00:00:35,000 And right now, every cent matters. Because diesel has entered a territory we've never 6 00:00:35,000 --> 00:00:41,759 seen before. The national average recently broke through six and a half dollars a gallon in parts 7 00:00:41,759 --> 00:00:47,960 of this country. Drivers are seeing $8 a gallon. And here at Cypress, one of the biggest expenses in 8 00:00:47,960 --> 00:00:54,240 the entire operation has exploded by hundreds of thousands of dollars every single week. 9 00:00:54,840 --> 00:01:01,840 But here's the thing. There are ways to fight back where you fuel matters. 10 00:01:02,000 --> 00:01:08,920 How you drive matters, how long that engine idles matters. And the 11 00:01:08,920 --> 00:01:12,959 difference between one truck getting six and a half miles per gallon and another getting eight 12 00:01:13,000 --> 00:01:18,880 and a half. Over the course of the year, Thad Penland says that difference could be worth 20, 13 00:01:18,920 --> 00:01:25,800 maybe $25,000 on one truck. Today, one of the men whose family name 14 00:01:25,800 --> 00:01:31,240 is on the side of this company is sitting down with us to explain exactly what's happening, what 15 00:01:31,280 --> 00:01:36,240 Cypress is doing about it, and why the person sitting behind the wheel may have more power over 16 00:01:36,240 --> 00:01:42,760 this problem than you think. And Thad came to this conversation with something else. He had an 17 00:01:42,760 --> 00:01:49,640 announcement to make a new program that will put numbers directly into your hands, your MPG, 18 00:01:49,840 --> 00:01:55,840 your idle time, your performance, and potentially more money in your pocket. 19 00:01:56,440 --> 00:02:02,809 Diesel may be out of control, but that doesn't mean we're powerless. Let's talk about it. 20 00:02:07,410 --> 00:02:11,929 Count down to the Cypress Truck Lines podcast starts now. 21 00:02:14,289 --> 00:02:20,769 Your number one professional flatlining podcast here to deliver stories, safety updates and 22 00:02:20,770 --> 00:02:25,929 company news directly to your ears. Let's get down to business. 23 00:02:31,249 --> 00:02:36,569 How's the weather out there? Cypress and Sun belt. Welcome into another episode of the Cypress Truck 24 00:02:36,609 --> 00:02:41,929 Lines podcast. I'm your host, Marcus, and it's always a pleasure to have you all here. Thank you 25 00:02:41,929 --> 00:02:48,529 everyone that clicked download or listened on the website today. We greatly appreciate it. And always 26 00:02:48,529 --> 00:02:53,369 I'm going to tell you tell a friend about this. If you've ever gotten anything out of this podcast, 27 00:02:53,410 --> 00:02:59,849 be it good information, good advice from another driver. You enjoyed a story that we told or a 28 00:02:59,850 --> 00:03:05,049 laugh that we had. All I'm asking you to do, if that's happened, just go out and tell a friend for 29 00:03:05,049 --> 00:03:10,129 me. The word of mouth is what builds this community, and we are trying to build this 30 00:03:10,130 --> 00:03:16,289 community and pack it absolutely full of all of you. Cypress drivers out there will welcome any of 31 00:03:16,289 --> 00:03:21,529 you on the show that want to join and come in here and take part in this. Uh, if you've got ideas 32 00:03:21,529 --> 00:03:26,889 for episodes, I always tell you, get in touch with me by heading over to the website 33 00:03:26,889 --> 00:03:33,689 podcast.cpresstruck.com. You can also find every single episode we've ever released there and who we're 34 00:03:33,689 --> 00:03:39,169 talking to, what we're talking about, all the information that you need to make your Cypress 35 00:03:39,169 --> 00:03:44,529 Truck Lines podcast listening experience top notch. That's what we aim for here. We want to 36 00:03:44,529 --> 00:03:50,008 bring you the best possible content that we can. And as I always say, I'm Steve Nash on this 37 00:03:50,009 --> 00:03:55,340 podcast. It ain't my job to get the ball in the hoop. It's my job to get the ball to the guys that 38 00:03:55,340 --> 00:04:00,419 get the ball in the hoop. And that is all of you Cypress drivers and employees out there. So once 39 00:04:00,419 --> 00:04:05,699 again, a big thank you from all of us here at the Cypress Truck Lines podcast. For all of the 40 00:04:05,699 --> 00:04:12,179 contributions that you all have made over our time with you. Now, today's episode 41 00:04:12,179 --> 00:04:18,459 is probably not going to be the most fun conversation that we've ever had because, well, 42 00:04:18,459 --> 00:04:24,099 frankly, we can put it out there. You heard it in the cold open. Diesel prices are out of control. 43 00:04:24,099 --> 00:04:30,499 Unprecedented, if you will. And today we are going to bring in Thad Penland to talk at 44 00:04:30,540 --> 00:04:36,659 length about some of the fuel solutions that Cypress employs. And also, he's got a big 45 00:04:36,659 --> 00:04:42,939 announcement that is going to change the way that you, the driver, interacts with the metrics that 46 00:04:42,940 --> 00:04:49,899 you get to see and how you can use those metrics to put more money in your pocket. It's really 47 00:04:49,900 --> 00:04:55,340 cool. It's kind of an impromptu thing. didn't know it was going to happen, but very glad that it did, 48 00:04:55,379 --> 00:05:01,140 because I think we can touch a lot of drivers with just one conversation right here on this 49 00:05:01,140 --> 00:05:06,939 podcast, and we got to spend a little over a half an hour today with Thad talking about this. And 50 00:05:06,940 --> 00:05:12,339 let me tell you, there's a lot of really good information and some hard numbers that Thad will 51 00:05:12,339 --> 00:05:19,099 get into that really helps set the stage for what this actually means, because this is not a thing 52 00:05:19,100 --> 00:05:24,379 where it's like, oh, it went up a little bit. You guys know it. I know that you see it out there. Of 53 00:05:24,380 --> 00:05:29,019 course, just given the job that you do, you're going to see it because these trucks have to have 54 00:05:29,059 --> 00:05:35,899 diesel in them to move forward. And moving forward is very important to what you guys do every 55 00:05:35,900 --> 00:05:40,539 single day. But I know that that's not the only place that you're feeling it. You're feeling it at 56 00:05:40,540 --> 00:05:45,699 the grocery store right now. Why? Well, because diesel prices are up. And all of those products 57 00:05:45,700 --> 00:05:50,219 that you buy at the grocery store show up on a truck. You guys don't need to hear that from me. 58 00:05:50,309 --> 00:05:57,029 You understand that? Um, it's even gas right now. Just regular gas prices are very, very 59 00:05:57,029 --> 00:06:04,029 high, and it's a struggle, okay? It's a struggle for everybody out there. It doesn't really matter how 60 00:06:04,030 --> 00:06:10,029 much money you make. Um, it's it's going to be something that you feel at the bottom line as you 61 00:06:10,030 --> 00:06:16,510 put together and crunch your numbers for the month. And we don't get the opportunity very often 62 00:06:16,510 --> 00:06:23,389 to move the needle here on this podcast at scale. Um, and this is one of those episodes 63 00:06:23,390 --> 00:06:28,829 where we have the opportunity to move the needle for Cypress and Sunbelt at scale, because we're 64 00:06:28,829 --> 00:06:34,469 talking to a lot of you right now, and this information is going to be very useful for you as 65 00:06:34,469 --> 00:06:40,389 it gets rolled out here in the very near future. So pay really close attention to what Thad has to 66 00:06:40,430 --> 00:06:45,069 say today, because it's all really good info, and it comes right from the guy that you would want 67 00:06:45,070 --> 00:06:50,549 to get it from. And it's the guy that's looking at this every single week and trying to put together 68 00:06:50,549 --> 00:06:56,829 the puzzle of how we weather this storm, because that's the best way that you can put it right now. 69 00:06:56,829 --> 00:07:02,269 It is a storm. It will come back down at some point in time. I think all of us are confident in 70 00:07:02,309 --> 00:07:06,750 that, but we don't really know when this could be something we're dealing with for the next couple 71 00:07:06,790 --> 00:07:11,109 of weeks. Couple of months. You really hope it's not something we're dealing with for the next 72 00:07:11,109 --> 00:07:17,269 couple of years, but that's not out of the question. So getting out ahead of it in the best 73 00:07:17,269 --> 00:07:24,029 way that we can here at Cypress and Sunbelt is sort of, uh, it's paramount. It's the biggest 74 00:07:24,030 --> 00:07:30,949 thing right now. One thing that you'll hear Thad talk about is where fuel expense lies on 75 00:07:30,949 --> 00:07:37,789 Cypress's chart of expenses each month. And let me tell you something, it might not be number one, but 76 00:07:37,790 --> 00:07:43,670 it ain't very far off. And if diesel prices continue to do what they've been doing as of late, 77 00:07:43,790 --> 00:07:49,240 well, uh, we are going to see it take over as the number one expense. I can almost guarantee you 78 00:07:49,280 --> 00:07:55,760 that. Um, and that's not where any trucking fleet wants to be. Having payroll be the highest expense 79 00:07:55,760 --> 00:08:02,439 is is sort of the goal here, right. Um, and when fuel starts to creep in and creep in is 80 00:08:02,439 --> 00:08:08,320 probably not the right way to phrase it when fuel storms the gate, uh, like it's been doing here in 81 00:08:08,320 --> 00:08:13,839 these last few weeks. Well, you have to make some decisions and you have to make some adjustments 82 00:08:13,839 --> 00:08:19,519 as somebody that runs a trucking fleet. And that's what Thad's going to talk to us here today about, 83 00:08:19,520 --> 00:08:23,759 is some of the adjustments that we're making. We're trying to be as preemptive about this as 84 00:08:23,760 --> 00:08:30,639 possible, because it really matters in the grand scheme of things, and we can't control the 85 00:08:30,640 --> 00:08:36,239 fuel prices. That's the hard part. We can talk about them, we can complain about them. Uh, we can 86 00:08:36,280 --> 00:08:40,919 we can roll our eyes every time we drive by a sign on the freeway and see what they're charging 87 00:08:40,919 --> 00:08:47,599 for it in whatever given state we happen to be in. But action is way better than reaction here. 88 00:08:47,599 --> 00:08:52,719 And that's what I think you're going to hear Thad talk about. With the announcement that he's going 89 00:08:52,719 --> 00:08:59,559 to make and the data, the pure raw data that he is going to put in the driver's hands, which can help 90 00:08:59,559 --> 00:09:06,159 you put some pure raw dollars in your pocket, um, if you're utilizing that information as, as I 91 00:09:06,159 --> 00:09:11,840 think fat and everybody here at the Cypress Truck Lines podcast hopes that you will after you have 92 00:09:11,840 --> 00:09:17,240 that information in your pocket. So without further ado, I want to get that in here because 93 00:09:17,240 --> 00:09:22,839 we're, uh, we're not going to talk for a super long time today. But what I would tell you is this 94 00:09:22,840 --> 00:09:29,039 conversation is very dense. There's not one question. Um, that's that's a throwaway question 95 00:09:29,039 --> 00:09:35,519 here. Everything that we're talking about today has some weight behind it. So strap in for this 96 00:09:35,520 --> 00:09:41,519 one and really focus up on the things that fat is saying here. And then what I'll tell you in in the 97 00:09:41,520 --> 00:09:47,809 outro after we get done talking to Thad, I'm going to bring you a ton of data from across the United 98 00:09:47,809 --> 00:09:53,529 States. We're going to talk the highest and lowest fuel prices by state. We're going to talk national 99 00:09:53,530 --> 00:09:59,209 average for diesel. We're going to talk about where some of the experts predict that this is 100 00:09:59,210 --> 00:10:05,849 going in the near future. And I hope that at the end of this episode, with all the data and all of 101 00:10:05,849 --> 00:10:12,809 the, uh, the adaptation that Cypress is currently employing, we're going to be able to move the 102 00:10:12,809 --> 00:10:17,969 needle, like I said, and you, as the driver, are going to have a lot of control over that. And we 103 00:10:17,969 --> 00:10:22,568 will get to that with Thad to I'm going to ask him how much control does the driver have? Thad, 104 00:10:22,569 --> 00:10:26,849 once the fuel is already in the tank, and you're going to get a really good answer from him? Uh, 105 00:10:26,849 --> 00:10:31,009 every single answer that he gave us here, I think, is pertinent to what we're going through right 106 00:10:31,009 --> 00:10:36,650 now. Everybody's feeling it. We're all wondering how we can affect it. And Thad is about to come in 107 00:10:36,650 --> 00:10:42,369 here and give us a lot of information on exactly that. Again, Remember, towards the end of the 108 00:10:42,369 --> 00:10:48,329 episode, I'll bring back all of that raw data from around the country. But first, let's get Thad 109 00:10:48,330 --> 00:10:51,489 Penland in here to talk Cypress Fuel Solutions. 110 00:10:58,689 --> 00:11:03,968 Welcome back into the Cypress Truck Lines podcast. Now, if you listen to the open of this show, you 111 00:11:03,969 --> 00:11:09,529 know exactly why we're here today. And we've got one guy here that's got a lot of good information 112 00:11:09,530 --> 00:11:15,049 for us, maybe the best person for us to talk to right now. And that is Thad Penland. Thad, thank you 113 00:11:15,049 --> 00:11:19,250 so much for the time today. We really appreciate you joining the podcast, especially with 114 00:11:19,250 --> 00:11:24,449 everything you got going on, man. Yes, sir. Absolutely. I was supposed to be on it last week 115 00:11:24,449 --> 00:11:30,288 and I got messed up and and didn't make it, but I, I really wanted to be here last week. But I 116 00:11:30,289 --> 00:11:36,489 apologize for that. But I'm not looking forward to our conversation today. We understand man, you got 117 00:11:36,489 --> 00:11:42,089 a lot going on on your plate. And, uh, maybe never more than right now because of all the things 118 00:11:42,090 --> 00:11:48,169 you've got to deal with. You're also looking at a diesel price stat that is. At this point in time, I 119 00:11:48,169 --> 00:11:55,129 feel comfortable calling it completely out of control. Out of control. God, it's this outrageous. 120 00:11:55,169 --> 00:12:01,370 So high. Now take me. Let's start from the top here. Thad, I want to give you the room 121 00:12:01,370 --> 00:12:07,409 immediately when diesel starts climbing out of control like this, how quickly do you feel that at 122 00:12:07,409 --> 00:12:13,369 the ownership level, and what types of things are you looking to do to try to manage this? Because 123 00:12:13,409 --> 00:12:19,169 500 trucks in the fleet, we can talk about a few cents for per gallon here or there. It really adds 124 00:12:19,169 --> 00:12:25,569 up. Now, when we're talking a few dollars a gallon here and there, uh, wow. It can leave a lot bigger 125 00:12:25,569 --> 00:12:31,329 mark. So talk to me about that a little bit. It sure can man in it. And it really brings to light 126 00:12:31,329 --> 00:12:37,859 all the things that that we do to try to save fuel. We really need to focus in on those things 127 00:12:37,859 --> 00:12:44,099 when it when it gets like this. But yeah. Fuel you know when it's three. 350 a gallon. You know it's 128 00:12:44,099 --> 00:12:50,779 it's bad enough. But when it jumps $2 to the gallon to 550, you know, it 129 00:12:50,780 --> 00:12:57,259 just it, it brings our cash flow to it, to its knees. You know, we burn through so much 130 00:12:57,260 --> 00:13:04,140 cash because we have to pay. We have to pay fuel every week, once a week in it. And it's gone from, 131 00:13:04,179 --> 00:13:11,019 you know, $550,000 a week to about 700 132 00:13:11,060 --> 00:13:17,699 and to $800,000 a week. So it's about a $250,000 hit every week. And 133 00:13:18,059 --> 00:13:24,659 and, you know, we just struggled to, to, uh, to, to stay on pace with our other vendors. You know, we 134 00:13:24,659 --> 00:13:29,738 end up stretching out our other vendors a little bit further, you know, and trying to make sure 135 00:13:29,739 --> 00:13:35,619 because we naturally we have to make payroll every week, you know, and, and so we're, we're 136 00:13:35,659 --> 00:13:40,500 closely looking at that, trying to get our customers to pay us faster. Maybe stretching our 137 00:13:40,500 --> 00:13:46,418 vendors just a little bit more to make it all work. But it's a it's a juggling act. I mean, it. It 138 00:13:46,419 --> 00:13:52,859 really is. And we've got one of the, one of the best in the business. Aaron Sloan she runs our our 139 00:13:52,979 --> 00:13:59,740 checkbook. So, uh, shout out to her, uh, I'll put her up against anybody as far 140 00:13:59,740 --> 00:14:06,259 as managing that part of the business. You know, she does really rigid. You know, we're luck. Is 141 00:14:06,260 --> 00:14:13,019 lucky to have. Right? Well, shout out to Aaron for sure. Um, I wouldn't want the bookkeeper job for 142 00:14:13,020 --> 00:14:19,979 any company, let alone one that's running 500 500 trucks. 1500 trailers. Thad math is definitely 143 00:14:19,979 --> 00:14:26,459 not my strong suit. But that number you said right there. Look, we can relate to it. Uh, seven, $800,000 144 00:14:26,460 --> 00:14:32,340 a week is a massive number and a 50% increase on what you were paying. You know, maybe just a couple 145 00:14:32,380 --> 00:14:37,749 of months ago. A couple of months ago. Yeah. Can you put that into perspective for us? Where does that, 146 00:14:37,790 --> 00:14:44,229 uh, rank among your biggest operating costs, or has it taken over as the biggest operating cost at 147 00:14:44,229 --> 00:14:49,149 this point? You know, it's still it's still a little bit below payroll. You know, payroll is our 148 00:14:49,150 --> 00:14:55,509 number one, uh, operating cost, whether you look at it weekly, monthly or yearly, it's it's number one 149 00:14:55,549 --> 00:15:01,830 on the list. And then fuel is is right there, right there behind it, you know, especially now that it's, 150 00:15:02,309 --> 00:15:09,149 you know, almost doubled. You know, it's it's a, it's it's, it's way up there, uh, almost, almost 151 00:15:09,150 --> 00:15:15,590 taking over or rivaling against payroll, you know. Yeah. But yeah, it's, uh, 152 00:15:17,270 --> 00:15:23,628 it's right there at it. Now, when you look at it, you know, it's it's it's, uh, competing with the 153 00:15:23,670 --> 00:15:29,869 with the highest, highest spend. Sure. Now, what's something maybe that you wish. You know, we got a 154 00:15:29,870 --> 00:15:34,270 lot of drivers listening to this right now. That. And I know that there's fuel solutions in place 155 00:15:34,270 --> 00:15:39,150 and that they're really important and maybe critically so, at a point like this where we're 156 00:15:39,189 --> 00:15:45,029 seeing unprecedented diesel prices, what's something you wish every Cypress driver understood 157 00:15:45,030 --> 00:15:50,348 about the relationship between fuel costs and the overall health of the company? Is there anything 158 00:15:50,349 --> 00:15:56,829 that comes to mind when I ask you that? Yeah, yeah, it sure is. And, you know, I've got a little, little 159 00:15:56,830 --> 00:16:03,749 secret that I might reveal on the Cypress podcast today. You know, I just got off. I was I told you 160 00:16:03,749 --> 00:16:10,469 I was on, uh, two calls before this. Mhm. And, um, we just got to the 161 00:16:10,469 --> 00:16:15,349 information on this new program that we're looking at, and, and I would like to announce that 162 00:16:15,349 --> 00:16:19,869 today on the podcast if that's, if that's good with you. I know I didn't give you a heads up on 163 00:16:19,870 --> 00:16:25,150 it, but. Hey that's I, I surprised you guys with what I bring to this podcast all the time. So it's 164 00:16:25,150 --> 00:16:31,279 only right that you get to surprise me once or twice. Dad. Uh, please, by all means, if you're ready 165 00:16:31,280 --> 00:16:36,359 to share that with us, we will make room for it right now. All right, all right. Well. And it and 166 00:16:36,359 --> 00:16:41,280 it's and it's all on topic. You know, you you asked the question of, you know, what can the drivers do. 167 00:16:41,280 --> 00:16:47,919 And, you know, every little bit helps. You know, it's it's it's mpg it's it's your idle 168 00:16:47,960 --> 00:16:53,559 time not idling the truck when you don't have to. We got Apus on all the trucks. And we would like 169 00:16:53,560 --> 00:17:00,039 to see the idle time come down, you know. And that will, uh, that will affect your MPG 170 00:17:00,160 --> 00:17:05,479 automatically. You know, if you if you're not idle in the truck, you're going to get better MPG right 171 00:17:05,520 --> 00:17:11,359 off, right off the bat. But we have MPG that range for six and a half all the way up to eight and a 172 00:17:11,360 --> 00:17:18,319 half. Oh wow. That two mile per hour is difference in when fuel is high. Like this 173 00:17:18,359 --> 00:17:24,879 adds up to about 20,000, but $25,000 difference in a year on one 174 00:17:24,920 --> 00:17:31,519 truck. Wow. One truck. So we need everybody to, to focus on or 175 00:17:31,640 --> 00:17:37,878 driving the truck in a way to, to to get the best fuel mileage that you can. 176 00:17:38,520 --> 00:17:44,519 And our target is eight and a half. But you know we realize the a and that's on the international 177 00:17:44,560 --> 00:17:51,439 trucks that had the new S13 motor and the using lowered depth. And that allows that engine 178 00:17:51,439 --> 00:17:56,879 to to breathe and to run more freely. And it gets eight and a half miles to put out where 179 00:17:56,959 --> 00:18:02,919 Freightliner has it come to the table yet. We hear rumors that they are going to that model where 180 00:18:02,920 --> 00:18:07,479 they're going to. They're going to use more depth and and you free up the truck a little more to 181 00:18:07,520 --> 00:18:11,839 get better fuel mileage because they, they really can't compete with international right now. 182 00:18:11,880 --> 00:18:16,999 They're, they're getting large trucks. They're getting seven miles to the gallon and the 183 00:18:17,040 --> 00:18:22,880 international's getting eight and a half. So they they've got to do something. But so along those 184 00:18:22,880 --> 00:18:29,849 lines we're going we are going to uh start this new program, and it's going to be 185 00:18:30,010 --> 00:18:36,009 involving a vendor that we've been using for a couple of years. It's called Fleet Ops. And so 186 00:18:36,050 --> 00:18:42,689 Fleet Ops, what they do is they take our raw data, payroll miles that we run, deadhead, 187 00:18:42,689 --> 00:18:49,410 idle time, all that stuff, and they put it in these dashboards and models that we can make 188 00:18:49,410 --> 00:18:55,410 sense of it and be able to make better decisions on, on what we're doing throughout the day. You 189 00:18:55,410 --> 00:19:02,088 know, it tracks every drivers out or out or tracks. This is a payroll for the week. It is it. 190 00:19:02,170 --> 00:19:08,689 It tracks how many miles he's got. And before there was no real way for the driver to 191 00:19:08,729 --> 00:19:14,329 interact with it. So we've been doing this program for two years. And, you know, the driver managers 192 00:19:14,329 --> 00:19:19,769 try to engage the drivers and, and and the the main thing they were doing was looking at the 193 00:19:19,770 --> 00:19:24,809 revenue per week. And whoever was below $6,000 a week in revenue, they were reaching out to that 194 00:19:24,849 --> 00:19:31,329 driver violin and putting a reason coda there. Why didn't you make the 6000? Were you off one 195 00:19:31,329 --> 00:19:36,729 day this week? Did you not get the miles to generate that revenue? And and we were trying to 196 00:19:36,730 --> 00:19:43,569 look at trends and stuff, but now this is going to be a game changer. They come out with a a driver 197 00:19:43,569 --> 00:19:50,529 app that will allow the drivers to see all of the same information, and the driver app we're going 198 00:19:50,530 --> 00:19:57,129 to utilize to to create our bonus. We're going to we're changing our quarterly 199 00:19:57,130 --> 00:20:03,929 bonus to a monthly bonus. So immediately you can see, you know this is the potential lacking make. 200 00:20:03,930 --> 00:20:10,849 And this is what I'm on target to make. And and if you're not at the top end of that, then you 201 00:20:10,849 --> 00:20:17,688 can drill down into your own numbers on on this app and you'll, you will be able to 202 00:20:17,689 --> 00:20:22,769 figure out, hey, what am I doing wrong? These are my employees or my idle time is my on time delivery. 203 00:20:22,810 --> 00:20:29,259 You know, those of my safety score and immediately know, hey, this is what I need to do to 204 00:20:29,300 --> 00:20:35,579 maximize the money that I'm making. And we've been waiting on this for a good while. Now it's finally 205 00:20:35,580 --> 00:20:42,259 ready. They they've got it. Oh. Deployed it a bunch of carriers right now. And, uh, we're going to go 206 00:20:42,300 --> 00:20:47,859 ahead and and jump in and do the same thing. And there'll be some new areas that we come up with 207 00:20:48,099 --> 00:20:54,899 that we're at paying a bunch for. Like right now we're not paying a fuel bonus per se. So that 208 00:20:54,900 --> 00:21:01,780 will that will be looked at as well. Yeah. So it's a lot of exciting things. Yeah. It sounds 209 00:21:01,780 --> 00:21:06,619 really exciting. That and and one part about this that I think is really cool is that giving the 210 00:21:06,620 --> 00:21:13,139 driver these metrics really gives them a degree of ownership over their own process in their own 211 00:21:13,140 --> 00:21:18,819 day that maybe they haven't had before, and giving them the ability to actually dig down through it 212 00:21:18,819 --> 00:21:24,659 and do some research on their own numbers And make different adjustments that work for them. 213 00:21:24,660 --> 00:21:29,619 Right? Because every day is a little bit different. So this has got to work for them. And they have 214 00:21:29,619 --> 00:21:34,939 the opportunity to put a little bit more money in their pocket for the trouble. Exactly, exactly. And 215 00:21:34,939 --> 00:21:40,698 and before they, they've had visibility into smart drive and their safety skull and, and stuff like 216 00:21:40,699 --> 00:21:47,098 that. But this gives them visibility into everything you know. So it's it's really, really 217 00:21:47,099 --> 00:21:53,539 exciting. And one of those things that that is going to be we're probably not going to put it in 218 00:21:53,539 --> 00:22:00,459 the bonus to start with because everybody is so low right now. But the compliance what 219 00:22:00,459 --> 00:22:06,419 we what you and I were talking about the the truck stop compliance that we managed through a, 220 00:22:06,420 --> 00:22:13,219 uh, a system that we, uh, that we contract with Manhattan to run for us. And it 221 00:22:13,219 --> 00:22:20,069 gives the driver fuel advice on every single load. Now, we're not forcing the driver to do that at 222 00:22:20,069 --> 00:22:26,789 the current time. But we want to be able to get to to where we're 85% or 90% compliance. 223 00:22:26,789 --> 00:22:33,149 So at the end of the day, you know, we will make that one of the parameters. But to start out with, 224 00:22:33,189 --> 00:22:38,790 we're just going to do the stuff that we've been doing. We may we may do a little something on idle 225 00:22:38,829 --> 00:22:45,709 time and MPG and uh, but it will give, give you full or full compliance. I just, I just 226 00:22:45,709 --> 00:22:52,429 finished up the demo on it and man it's, it's it's really, really neat to what, what all they can see 227 00:22:52,469 --> 00:22:58,909 you know. Yeah. It sounds like it. Now you're talking about the kind of the app, uh, with with 228 00:22:58,910 --> 00:23:05,389 Manhattan here and having some, you know, at almost advice for the driver on is that going to be like 229 00:23:05,389 --> 00:23:11,149 where the cheapest fuel is along the route. Yes. Yeah. And and we've been doing that for about a 230 00:23:11,149 --> 00:23:17,469 year. But but our compliance is really low right now. And but we so we need everybody to buy in to 231 00:23:17,470 --> 00:23:23,189 the compliance. And and this bonus structure is going to kind of push that along a little bit so 232 00:23:23,189 --> 00:23:28,429 that. What's uh what would be your advice for driver? Uh, Thad. Because as long as I've been doing 233 00:23:28,430 --> 00:23:32,989 this now, I've been making podcasts for truck drivers for four years now. And there is one thing 234 00:23:32,989 --> 00:23:38,549 when we talk about fuel solutions almost across the board that sometimes drivers will bring up to 235 00:23:38,590 --> 00:23:44,949 me is that, well, you know, it's recommending a fuel stop or I don't necessarily need fuel yet. And I 236 00:23:44,949 --> 00:23:50,189 know there's a truck stop that I like just down the road that maybe isn't listed. How important is 237 00:23:50,189 --> 00:23:55,469 it to to keep in that compliance and try to get that number to that 85 or 90, and how much can it 238 00:23:55,469 --> 00:24:00,910 actually save? I, I know you probably don't have a hard number in mind, but we talked about the 239 00:24:00,910 --> 00:24:07,148 exponential, uh, nature of this thing because you have so many trucks, because so many miles per 240 00:24:07,149 --> 00:24:12,869 gallon adds up. So how important is it for these drivers to really follow this as best as they can, 241 00:24:12,910 --> 00:24:17,789 you know, without putting themselves behind the eight ball here? Right, Right. It's. It's really 242 00:24:17,790 --> 00:24:24,429 important. You know what a lot of drivers may not understand is we don't pay the price of fuel 243 00:24:24,430 --> 00:24:30,229 that's posted out on the big sign at all the loves and the the Tas and the pilot and flying 244 00:24:30,230 --> 00:24:37,109 Jay. You know, they give us a really good price, but it's based on volume. So we're trying to 245 00:24:37,150 --> 00:24:43,910 push as much volume into into pilot, into loaves and into the Tas, 246 00:24:43,949 --> 00:24:50,389 the, the, the major chains. So that's really what the philosophy behind the, 247 00:24:50,789 --> 00:24:57,509 the Manhattan product is, is to, is to give them the cheapest fuel that, 248 00:24:57,509 --> 00:25:04,029 uh, to buy all the daily basis. And, and it takes into account fuel taxes, 249 00:25:04,350 --> 00:25:10,989 a price at the pump their, their freight cost it, it bakes all that in and it looks at where 250 00:25:10,990 --> 00:25:17,759 they're delivered to. I mean, it's a really it's they're Crazy, uh, a law. Uh, hey, said, 251 00:25:18,760 --> 00:25:25,559 uh, a logarithm. Uh, yeah. Algorithm. Yeah. Algorithm. Right. Yeah. It spits out this thing and it tells 252 00:25:25,560 --> 00:25:32,519 them where to do it. Now, the the best thing that the drivers could do is to give us feedback as to 253 00:25:32,560 --> 00:25:39,478 why this particular stop doesn't work. You know, and we can we can tweak the 254 00:25:39,479 --> 00:25:45,559 network and tweak the rules within the Manhattan system to be able to give them a fuel, revise that, 255 00:25:45,560 --> 00:25:52,199 that will, that will work more so than not, you know. So that's that's the key is to get get 256 00:25:52,199 --> 00:25:57,639 feedback, you know, in the send messages into your driver manager to say, hey, I would rather fuel 257 00:25:57,639 --> 00:26:03,719 here because of this. And then we can take a look at some of those, some of those reasons and see if 258 00:26:03,719 --> 00:26:10,199 we can tweak the network a little bit to, uh, to get more compliant. Because if we're if we're 90% 259 00:26:10,199 --> 00:26:16,719 compliant, we we can save almost 20 cent per gallon of fuel, and if we're 260 00:26:16,760 --> 00:26:23,479 buying up 750,000 gallons a month, you know that adds up quick. Yeah, yeah, it really 261 00:26:23,480 --> 00:26:29,079 does. And and I love the way that you guys are depending on the drivers for that feedback that 262 00:26:29,079 --> 00:26:35,079 because obviously we can put the robots to work, we can use the algorithms and the real time data 263 00:26:35,120 --> 00:26:40,599 as best as we can, but the application in the field is always going to have a bit of a skew on 264 00:26:40,599 --> 00:26:47,519 it. And getting it from the driver's point of view, is it? Not only does that to me show that 265 00:26:47,560 --> 00:26:52,799 you're concerned about their day, you want them to be able to run the way that they want to. Right, 266 00:26:53,079 --> 00:26:57,999 right. And getting that feedback will really help kind of fine tune this system. And another thing 267 00:26:57,999 --> 00:27:03,079 that I think is really cool here, Thad, that I want to bring up a lot of other fleets that I've 268 00:27:03,079 --> 00:27:08,439 spoken to over the years would tell me, we've got a fuel solution with pilot, or we've got one with 269 00:27:08,439 --> 00:27:13,769 loves. It doesn't tend to be that they'll have them with multiple outlets like you do. You 270 00:27:13,769 --> 00:27:19,889 mentioned to pilot and loves. That we get the big three, you. Know. Yeah. And that opens up the options 271 00:27:19,890 --> 00:27:25,290 out there for your drivers, because there are a lot of those truck stops cumulatively across 272 00:27:25,290 --> 00:27:29,930 these routes and over there on the eastern seaboard especially. So that that ups the 273 00:27:29,930 --> 00:27:36,529 flexibility here, doesn't it gives the driver a few options. Right? Right. As long as the the the 274 00:27:36,530 --> 00:27:42,369 fuel advice is, is is calculated correctly. And you know, we don't have something crazy in there, which 275 00:27:42,410 --> 00:27:48,209 I know we probably do. You know and and we need some feedback on that to, to clean those up and, 276 00:27:48,209 --> 00:27:54,089 and to get this thing really kicked off. You know, but I really think the app is going to help as 277 00:27:54,089 --> 00:28:00,729 well too, because it will actually tell them what their compliance is for the month. And it'll it'll 278 00:28:00,770 --> 00:28:07,169 be able to, you know, this is the goal. And then in this particular driver, maybe it's 70% or 80%. And 279 00:28:07,209 --> 00:28:14,129 you know, you'll you'll have a goal to work towards. Same with the MPG and the revenue and 280 00:28:14,129 --> 00:28:20,849 miles and everything they'll have. They'll have all that data to to work towards. That's great. 281 00:28:20,849 --> 00:28:26,249 Now what can you tell me? Maybe an example of what a driver who's really good at his fuel management, 282 00:28:26,250 --> 00:28:30,529 what that might look like right now. Thad. What he's maybe doing a little bit different than 283 00:28:30,569 --> 00:28:36,849 somebody that is struggling to keep that compliance number up. Well, I think they're just, 284 00:28:36,890 --> 00:28:42,489 you know, when they get their their new just say they're empty. And uh, Atlanta, Georgia and we're 285 00:28:42,490 --> 00:28:49,250 going to send them over to Duluth to get yellow. Going to North Carolina. Say that's when the the 286 00:28:49,250 --> 00:28:55,050 fuel solution is, is calculated when they get empty. So it and it might tell them to fuel right 287 00:28:55,050 --> 00:29:01,650 away before they go to Duluth. Or it might tell them to fuel in route to North Carolina. But you 288 00:29:01,650 --> 00:29:07,579 know, it's got certain parameters where it'll never let them get get below the Accept the fuel 289 00:29:07,579 --> 00:29:14,459 level or get close to running out. So I think the the best guys, you know, they look at the 290 00:29:14,459 --> 00:29:20,579 the fuel advice and they, they, they follow it, you know, and and if they, if there's some reason that 291 00:29:20,579 --> 00:29:26,419 they can't follow it, they'll, they'll follow us or send us a message and say, hey, this, this one, just 292 00:29:26,420 --> 00:29:32,459 advert for all you know, because of X, Y and Z. And then we can look at the whole, the whole network 293 00:29:32,460 --> 00:29:39,380 and program and, and see why why it gave that fuel advice at that time, look at the rules and 294 00:29:39,380 --> 00:29:45,978 make some adjustments and kind of helps everybody out. Yeah I can definitely see that that now, 295 00:29:46,179 --> 00:29:51,819 um, let's talk about this kind of economy beyond the fuel pump a little bit. How much control does 296 00:29:51,819 --> 00:29:57,660 a driver actually have over what the fuel is going to cost Cypress once it's already in the 297 00:29:57,660 --> 00:30:04,619 tank here that you mentioned, um, idle times there. And also, you know, um, obviously there's 298 00:30:04,619 --> 00:30:09,979 some speed factor that goes into this a little bit. So, uh, how can the drivers help bring these 299 00:30:09,980 --> 00:30:14,379 costs down once they're already? They've got a full tank and they're moving down the road. Right? 300 00:30:14,420 --> 00:30:20,778 Right. Very, very good point. Because a driver can really control his a lot of what, 301 00:30:21,259 --> 00:30:28,019 what happens to produce his mtg at the end of the month. He's got a lot of control over that. 302 00:30:28,020 --> 00:30:34,819 And you know, it's it's how you drive, how you accelerate. You know, we want smooth. You know, just 303 00:30:34,819 --> 00:30:41,779 remember smooth driving, you know, brings the best the best MPG. And of course, no, you 304 00:30:41,780 --> 00:30:48,539 know, your idling should be below 10%, you know, 10% idle time. Because really 305 00:30:48,579 --> 00:30:54,619 you you should never have to idle the truck except for and you know, we have the two minute 306 00:30:54,620 --> 00:31:01,259 shut off anyway, you know, so if a guy's got his land, his island, his truck and the 307 00:31:01,300 --> 00:31:08,230 and he hasn't circumvented the system. It'll shut off after two minutes, 2 to 5 minutes of idling. So 308 00:31:08,589 --> 00:31:13,829 that helps them remember that, you know? And then, of course, when you take your break and you shut 309 00:31:13,829 --> 00:31:19,389 down for the evening, your Apu automatically fires up and it's it's burning up like a 10th of a 310 00:31:19,390 --> 00:31:26,270 gallon per hour versus a full gallon per hour with the truck engine. So that's where the 311 00:31:26,270 --> 00:31:32,829 savings come in. Was maximizing your Apu and making sure you're utilizing that Apu 312 00:31:33,270 --> 00:31:39,989 every, every chance you get. And don't idle the the the normal engine, the big engine on the 313 00:31:39,990 --> 00:31:45,909 truck. Right. Those Apus are a big investment to put across the fleet the size of Cypress and 314 00:31:45,909 --> 00:31:51,269 Sunbelt when we're talking 500 trucks. And and. Because. Of that, that's why you guys made that 315 00:31:51,269 --> 00:31:57,309 investment, right. It's partly for driver comfort and it's partly to manage fuel, uh, fuel cost. Right. 316 00:31:57,310 --> 00:32:03,429 Managing fuel costs. You know, the Apu use when and when the fuel gets really high like this, it's 317 00:32:03,429 --> 00:32:09,910 it's really a no brainer. You know how much fuel does. We're looking at a couple of couple of 318 00:32:09,910 --> 00:32:15,748 gallons a night versus, you know, 12 gallons a night. You know, and do the math on that 12 times 319 00:32:15,749 --> 00:32:22,349 six and versus two times six, you know. Yeah. It's a it's a huge difference 320 00:32:22,350 --> 00:32:29,029 every night for 500, 450 trucks for 200. And uh, what is it, 321 00:32:29,029 --> 00:32:35,309 292 days a year, you know. Yeah. Yeah. You really start to crunch the numbers here, and you can see 322 00:32:35,309 --> 00:32:41,149 the the exponential rise in cost just based on a few dollars per gallon increase across the United 323 00:32:41,150 --> 00:32:46,469 States. And listen, it's it's hard for everybody out there that I was I you know, you. Talked a. 324 00:32:46,469 --> 00:32:53,270 Little bit about it. I was out hunting last week and fortunately my pickup runs on, uh, on gas. But I 325 00:32:53,310 --> 00:32:58,629 pulled up to the pump directly behind a guy that had just gotten diesel. And out here in Oregon on 326 00:32:58,629 --> 00:33:05,559 Interstate 84, he did 17 gallons for just under $140. And you think about 327 00:33:05,559 --> 00:33:11,679 17 gallons is a drop in the bucket when we're talking about fueling a Cypress truck and. Right, 328 00:33:11,719 --> 00:33:18,359 right. Yeah. That's a that's almost $8 or eight little over $8 a gallon. Yeah, yeah. And there was 329 00:33:18,359 --> 00:33:22,640 one right across the street that was only 750 that I don't know what that guy was thinking. 330 00:33:22,680 --> 00:33:28,238 Right. That pump. But he was and and that sort of illustrates what we're talking about here is the 331 00:33:28,239 --> 00:33:32,799 app can really help you up that awareness, where if there's something just across the street that 332 00:33:32,800 --> 00:33:38,759 is within the fuel solutions and you've maybe just kind of auto piloted to a place that is not 333 00:33:38,760 --> 00:33:43,879 in your fuel solutions package, then take that extra time and just run across the street, because 334 00:33:43,880 --> 00:33:49,479 if everybody did that every single time, it would really make it would move the needle for you guys. 335 00:33:49,479 --> 00:33:56,399 Wouldn't it make a huge difference $0.20 a gallon, you know, is what is what we would say if, 336 00:33:56,399 --> 00:34:02,480 if we can get to the 90, 9,090% compliance. So that's going to be a big push. You know obviously 337 00:34:02,480 --> 00:34:08,519 this new bonus program is going to be exciting times. Drivers can see you know, how they can 338 00:34:08,519 --> 00:34:15,439 improve in in real time data live. So you know once August closed out you 339 00:34:15,439 --> 00:34:21,279 know and then then we get a couple of days to check everything we pay that month. And then we go 340 00:34:21,280 --> 00:34:27,439 right into September and your, your live data, you know, you're looking at it and it's like a, a speed 341 00:34:27,440 --> 00:34:34,040 dial. You know, it shows my earning potential is way over here and this and and I'm here, you know, 342 00:34:34,080 --> 00:34:40,559 with with what I'm doing right now. And it'll give you all the insights to how I can get to. How can 343 00:34:40,560 --> 00:34:47,199 I maximize my bonus? You know, we want to we want to pay maximum bonus to everybody because that 344 00:34:47,199 --> 00:34:51,999 helps your paycheck at the end of the week. It helps your paycheck at the end of the year. And it 345 00:34:52,039 --> 00:34:58,919 and it saves the company money. So so we're we're all about that. and the communication piece was 346 00:34:58,919 --> 00:35:04,999 what we were lacking to get the drivers excited and involved, you know, and it'll show, it'll have a 347 00:35:04,999 --> 00:35:11,319 leaderboard on it and all kind of stuff, you know? So I'm really, really, uh, 348 00:35:11,639 --> 00:35:17,878 excited about getting up and rolling. It's crazy. We just signed the deal today. So it's probably 349 00:35:17,879 --> 00:35:24,559 going to be, you know, uh, maybe, maybe of 2 or 3 weeks in October before we get it rolling. And 350 00:35:24,559 --> 00:35:31,319 maybe November is the first month that we that we actually do bonus with, you know, but that's, that's 351 00:35:31,320 --> 00:35:37,959 that's what our goal is to have it rolled, rolled out up and running by November the 1st. Perfect. 352 00:35:37,960 --> 00:35:43,039 Well, listen, I know based on the competition for the top dog spot every month that there is a 353 00:35:43,040 --> 00:35:49,519 competitive nature among these drivers and, and, uh, this is another realm for them to compete to be 354 00:35:49,519 --> 00:35:55,488 the top dog and man the the mountains that you could move if you had a bunch of drivers really 355 00:35:55,489 --> 00:36:01,409 get serious about this really fast. Um. Ah. Once again, I use the word exponential because I feel 356 00:36:01,409 --> 00:36:07,049 like that's where we're at right now with how out of control this really is. And. Right. Right. You 357 00:36:07,050 --> 00:36:13,809 know that, I wonder you've been obviously with Cypress, uh, going back a long time, and you've seen 358 00:36:13,850 --> 00:36:20,249 fuel spikes like this in the past. Maybe not this aggressive. Uh, but what have some of these past 359 00:36:20,250 --> 00:36:26,249 fuel surges that you've seen in diesel price taught you about how to get ahead, how to manage 360 00:36:26,250 --> 00:36:31,569 this? Um, not only from the driver's seat, but from your point of view. Uh, when you're when you're 361 00:36:31,570 --> 00:36:37,049 making big decisions that kind of affect the entire company. Right, right. Fuel is is kind of 362 00:36:37,090 --> 00:36:43,689 king, you know, and it's it's our second biggest call. So anything that we can do to to 363 00:36:43,729 --> 00:36:50,289 increase our, our efficiency with the cost of fuel that we know that's going to pay, have 364 00:36:50,290 --> 00:36:57,089 huge benefits and payback. Just like safety. Anything we can do to improve safety. We 365 00:36:57,090 --> 00:37:02,649 know that's going to pay off. Anything we can do to to improve fuel efficiency, that's going to pay 366 00:37:02,649 --> 00:37:09,649 off. You know, all this started way back in 1990 when we had our first big fuel spike at the 367 00:37:09,689 --> 00:37:16,449 with the Gulf War. That's where the fuel surcharge first came into play. Before it was just long haul 368 00:37:16,489 --> 00:37:22,689 rates and, uh, accessory rates. Stop off rates, stuff like that. But with 369 00:37:22,689 --> 00:37:29,209 1990, when when the Gulf War started, fuel jumped pretty high. You know, I can't remember exactly 370 00:37:29,210 --> 00:37:35,888 what it was, but it was probably over $4 a gallon or over $3 a gallon, for sure. And 371 00:37:36,010 --> 00:37:41,330 that was back when we were used to paying a dollar and a half for fuel. So it doubled, you know. 372 00:37:41,530 --> 00:37:48,209 And so in 1990, brought in the, uh, and thank God it did. It brought in 373 00:37:48,209 --> 00:37:54,540 the all the fuel surcharge Discussions that we have with our customers and contracts in. And it's 374 00:37:54,540 --> 00:38:00,939 been the been like that ever since. You know, we, we, we established scales that would would help pay 375 00:38:00,939 --> 00:38:07,099 for this exorbitant fuel when it jumped up and those same fuel surcharges, they'd been tweaked a 376 00:38:07,100 --> 00:38:12,939 little bit over the years. But for the most part, it's the same surcharge that we've had since 1990. 377 00:38:12,979 --> 00:38:19,820 And thank God that that we've we've got that because we would never be able to survive. You 378 00:38:19,820 --> 00:38:26,579 know, if, if, if, if our customers didn't know, didn't pay a good fuel surcharge. 379 00:38:26,740 --> 00:38:33,099 So that's critical to our success in survival, really. I mean, nobody can survive this. I don't see 380 00:38:33,100 --> 00:38:38,579 how the owner operators are doing that. I mean, they get they get fuel surcharge. All set. But 381 00:38:38,580 --> 00:38:45,339 still, you know, to to have your, your, uh, one of your largest expenses double 382 00:38:45,340 --> 00:38:52,019 every in double on the cost that it cost you for the month is is just puts a lot of 383 00:38:52,020 --> 00:38:58,220 pressure. A lot of pressure on you. Yeah. You got other expenses. Your truck breaks down. You know, I 384 00:38:58,220 --> 00:39:04,899 mean, it's it's it's terrible. Yeah, man, I can't imagine for dollars diesel with 1990 385 00:39:04,899 --> 00:39:11,779 prices. I mean, that's going back almost, uh, almost 30 full years, 40 full years now. And. Yeah. 386 00:39:11,819 --> 00:39:18,139 And I mean, eggs, you probably, you know, a lot of people like to, to to equate the price of things 387 00:39:18,139 --> 00:39:24,499 to the price of eggs. Well, in 1990, you're probably spending, what, $0.65 on a dozen eggs. Right, right. 388 00:39:24,540 --> 00:39:29,859 You have to think about the inflation and how much the dollar value has changed since then. So 389 00:39:29,860 --> 00:39:34,739 that that goal four really could have ushered in something that is almost as bad as what we're 390 00:39:34,739 --> 00:39:41,619 seeing right now. Um, and, and that's I mean, change the industry didn't. Yeah. Right. Change brought in 391 00:39:41,620 --> 00:39:48,228 the fuel surcharge, uh, which which prior to that, all the way back to 1950. 392 00:39:48,270 --> 00:39:54,949 There was never a fuel surcharge. You know, they had some spikes back then, but this ushered 393 00:39:54,950 --> 00:40:01,789 in a major change in. And, uh, it was a it was a good thing, a survival 394 00:40:01,789 --> 00:40:08,749 piece for us. You know, it's, uh, we're, uh, we're fortunate to have that, that in our, uh, in 395 00:40:08,750 --> 00:40:13,669 our programs with our biggest shippers. Well, that I'm, I'm wondering here, you know, with the drivers 396 00:40:13,669 --> 00:40:19,869 I've talked to, um, here at Cypress and Sun Belt, they greatly respect your guys's opinions there. 397 00:40:19,870 --> 00:40:26,350 Uh, you know, the Penland boys especially. And and I want to ask you how quickly if you got, 398 00:40:26,350 --> 00:40:32,908 say, one fifth of your drivers. So 75 to 100 drivers, the the minute that you roll out the 399 00:40:32,909 --> 00:40:38,789 app, they start using it. They really start paying attention to their fuel cost. And they they do 400 00:40:38,789 --> 00:40:45,349 everything they can to get that number up to that 85, 90% compliance. How quickly are you feeling 401 00:40:45,469 --> 00:40:50,789 that in your seat? And how big of a high five moment for you would that be if, let's say, just 402 00:40:50,789 --> 00:40:55,909 100 drivers got on board right away? Absolutely. Right. Right. Yeah. It's funny you mentioned that. 403 00:40:55,949 --> 00:41:01,310 Yeah. We that's the kind of number we've been kicking around. If we can get a 100 guys to really 404 00:41:01,310 --> 00:41:06,629 buy in, you know that's going to make a huge difference. And then we can slowly start working 405 00:41:06,629 --> 00:41:12,189 on the other guys, you know, and and and maybe put out some back and put out some more training on 406 00:41:12,189 --> 00:41:18,790 on the what we're what we're looking for. But yeah, that that first group to really buy in and and 407 00:41:18,790 --> 00:41:25,629 and talk it up. Everybody else you know oh that would be huge. And plus it will benefit the driver. 408 00:41:25,629 --> 00:41:30,029 And then you get them bragging about their bonus too. Right. Get them bragging about that bonus on 409 00:41:30,030 --> 00:41:36,908 the. Bonus is going to be I love it I love. It. Well that I, I want to get you back to what 410 00:41:36,909 --> 00:41:41,270 you've got going on here. I know you guys are busy, but you got every Cypress driver that's listening 411 00:41:41,270 --> 00:41:46,278 right now. Um, I just want to get out of your way. We'll kind of replace the final thoughts segment 412 00:41:46,279 --> 00:41:51,519 that we normally do with this. What do you want them to understand about where the fuel prices 413 00:41:51,519 --> 00:41:56,519 are right now, what Cypress is doing about it and what you're asking them to do? Summarize this 414 00:41:56,519 --> 00:42:02,198 whole conversation for me. Talk about the apps. Talk about anything pertinent here, but leave them 415 00:42:02,199 --> 00:42:08,399 with a message in some direction from your seat before I let you go today. You know, the the cost 416 00:42:08,399 --> 00:42:15,199 of fuel is our second biggest expense. So anytime we can reduce 417 00:42:15,199 --> 00:42:21,279 that, that's going to help the company as a whole. It's going to help us to be able to to buy more 418 00:42:21,280 --> 00:42:27,639 new trucks, to pay more and even their driver pay and bonus pay. So anything 419 00:42:27,719 --> 00:42:34,559 that the driver can do to help increase that MPG, that is going to help 420 00:42:34,600 --> 00:42:39,999 help everybody. It's going to help the drivers. It's going to help the company. And it's uh, it's 421 00:42:40,000 --> 00:42:46,279 going to help us survive. Fuel will come back now. There's no. There's no doubt in my mind. It's just. 422 00:42:46,279 --> 00:42:53,000 We've gotta fight through this. This tough time with the Iranian war and get things back to the 423 00:42:53,000 --> 00:42:59,918 home. But we. But if everybody can focus on doing their part, it's going to make a huge, 424 00:43:00,040 --> 00:43:06,839 huge difference. Yep, yep. You know, going back just a few episodes and we talk to to uh, D3 and Aaron 425 00:43:06,840 --> 00:43:12,759 Penland, we, we brought in the football analogy of everybody filling their role. And this is a real 426 00:43:12,799 --> 00:43:19,679 good example of it. Good job. We got a thing up here called DUI. And we say it all the time 427 00:43:19,680 --> 00:43:26,600 to our, our our colleagues in customer service and dispatch. DUI do your 428 00:43:26,600 --> 00:43:33,519 job. Take care of what you can take care of. And us working together as a team. You know 429 00:43:33,840 --> 00:43:39,760 we're we'll make. We'll all make it work. Yeah. Teamwork makes the dream work. And we need 430 00:43:40,129 --> 00:43:47,009 input and will need drivers that are engaged, you know, in and doing their very best, 431 00:43:47,050 --> 00:43:54,049 you know. And that's that's kind of what Cypress was founded on is good drivers and drivers 432 00:43:54,050 --> 00:44:00,249 that care, you know, and that's what we need to. But I think this app is really going to help the 433 00:44:00,250 --> 00:44:06,250 driver because really he's driving. He's driving blind. Other than the gauges and stuff that he has 434 00:44:06,250 --> 00:44:12,209 in the truck. And some of those were good though, but it didn't really bring in to bring into light 435 00:44:12,209 --> 00:44:18,168 where he stood with everybody else and where the average was. We're asking everybody to be better 436 00:44:18,169 --> 00:44:24,330 than the average is what we're, we're we're asking. So whenever we get the average mpg, if you're 437 00:44:24,330 --> 00:44:29,409 above that average, you're in the money, you know, and if you're way above the average, you're really 438 00:44:29,409 --> 00:44:36,169 in the money. So hopefully we can drive that average up a little bit and we'll benefit and 439 00:44:36,209 --> 00:44:41,929 benefit everybody of Cypress. Well, Thad, we really appreciate the time today. I think we've got some 440 00:44:41,929 --> 00:44:47,090 really good stuff here. And, uh, as I always say on this podcast, if we can move the needle just a 441 00:44:47,090 --> 00:44:51,129 little bit, we're doing our job here. And I know there's guys listening. They're going to take this 442 00:44:51,129 --> 00:44:56,049 to heart and do their best. Uh, with the new technology that you're adding, the new metrics 443 00:44:56,050 --> 00:45:00,289 that they're going to be able to look at. I'm excited to talk to you again about this in six 444 00:45:00,290 --> 00:45:05,049 months. Maybe after that, fuel prices creep back down a little bit and you've got some tangible 445 00:45:05,050 --> 00:45:10,370 data that you can look at and see how the drivers have adapted to this. I agree that's going to be 446 00:45:10,370 --> 00:45:15,689 interesting to to revisit that. Well, Thad, thank you so much for the time today. We greatly 447 00:45:15,689 --> 00:45:20,569 appreciate it. We'll get you back on here again soon okay. All right Marcus, appreciate it. That's 448 00:45:20,570 --> 00:45:25,330 Thad Penland. We'll be right back here with more data on the diesel price on the Cypress Truck 449 00:45:25,330 --> 00:45:26,489 Lines podcast. 450 00:45:32,929 --> 00:45:38,059 Huge thanks to Thad for giving us some of his time. That's very valuable time. That's got a lot 451 00:45:38,139 --> 00:45:42,899 on his plate. And we greatly appreciate every minute that we get to spend with him here on the 452 00:45:42,899 --> 00:45:47,819 Cypress Truck Lines podcast. I think we got a ton of really good information there, and even an 453 00:45:47,820 --> 00:45:52,739 impromptu announcement about the new app and all the new data that you drivers are going to have 454 00:45:52,739 --> 00:45:58,020 access to. Um, can't thank that enough from that or for that. Man. I am a long ways away from 455 00:45:58,020 --> 00:46:02,620 Jacksonville, Florida, sitting here in Eugene, Oregon. Uh, but if I could give that a long 456 00:46:02,620 --> 00:46:07,580 distance high five, I'd really like to today, because that's one of the coolest surprises that 457 00:46:07,580 --> 00:46:11,579 we've had here on the show, is to make an announcement like that that we aren't really 458 00:46:11,580 --> 00:46:18,179 expecting. But again, I've, I've used this phrase so many times today and in today's episode, Move the 459 00:46:18,179 --> 00:46:23,658 Needle. Uh, we can do that today here on the Cypress Truck Lines podcast. And now you guys have 460 00:46:23,659 --> 00:46:29,539 that information. You can look for the rollout coming here within the next few weeks, uh, maybe 461 00:46:29,540 --> 00:46:35,100 into the the middle part or the late part of October and November. You'll start to see some of 462 00:46:35,100 --> 00:46:40,978 these changes become visible. And then what I love about it is that you guys can pit yourselves 463 00:46:40,979 --> 00:46:47,939 against one another and compete for another sort of, I guess, bonus structure that's in 464 00:46:47,939 --> 00:46:52,938 the same vein as the top dog thing. Like we're looking for the guys that can be the most 465 00:46:52,939 --> 00:46:58,698 compliant. We're looking for that low idle time that that high mpg, that eight and a half number, 466 00:46:58,740 --> 00:47:05,378 that 85 to 90% compliance within the fuel solution. And I love when we bring a little bit of 467 00:47:05,379 --> 00:47:10,019 competition into this, because if I've learned anything about you Cypress drivers and you 468 00:47:10,019 --> 00:47:14,300 Sunbelt drivers, you like a little bit of competition when it comes to being out there and 469 00:47:14,300 --> 00:47:21,019 running hard, running safe and running efficiently. Uh, so we will come back here. 470 00:47:21,020 --> 00:47:25,259 Maybe. Maybe it's three months. Maybe it's six months, maybe it's a couple of weeks. It really 471 00:47:25,259 --> 00:47:31,099 depends on what the environment gives us to work with here. And whether or not bringing that back 472 00:47:31,100 --> 00:47:37,979 in for an update is is relevant at the time. So we will revisit this at some point in time. But a 473 00:47:37,979 --> 00:47:42,739 lot like everybody right now, we're sort of sitting back and watching to see exactly where 474 00:47:42,740 --> 00:47:48,139 these fuel prices are going to go. And boy, let me tell you, when I was sitting down to do the 475 00:47:48,139 --> 00:47:54,259 research for this part of the episode, um, it's really easy to get discouraged when you hear some 476 00:47:54,260 --> 00:48:00,099 of these numbers. And I want to remind you something as I bring you these stats, something 477 00:48:00,100 --> 00:48:04,738 that Thad said right towards the end of the interview there was that these prices will come 478 00:48:04,739 --> 00:48:11,379 back down. He's confident about that. It's a matter of when and we don't really know. 479 00:48:11,780 --> 00:48:16,658 Um, you know, just the other day I heard the president come out and say something along the 480 00:48:16,659 --> 00:48:23,620 lines of he was, uh, negotiating with Ukraine to get Ukraine to stop bombing Russian diesel, 481 00:48:23,699 --> 00:48:29,980 uh, facilities. And it kind of sounded like Ukraine was going to buy into that. But then the very next 482 00:48:29,980 --> 00:48:36,709 day, I woke up and the first thing I saw on my TV was a big smoking oil refinery in Russia that 483 00:48:36,709 --> 00:48:42,309 Ukraine had just recently attacked. So, you know, there's a lot of things that go into this. The 484 00:48:42,310 --> 00:48:47,870 geopolitical environment is sort of crazy right now. And it's not just the war in Ukraine, it's the 485 00:48:47,870 --> 00:48:53,149 war in Iran as well. The Strait of Hormuz. And everything happening there greatly affects diesel 486 00:48:53,149 --> 00:48:59,749 prices. And we are seeing it right now. It's hard to believe that all this crazy stuff going on all 487 00:48:59,749 --> 00:49:05,429 the way across the world affects us, right down to the very most fundamental part of being an 488 00:49:05,429 --> 00:49:10,869 American, which is your your job, your income, your your life, liberty and the pursuit of happiness 489 00:49:10,870 --> 00:49:15,989 that you get out of your wallet. Because we know that if you want to go pursue happiness, a lot of 490 00:49:15,990 --> 00:49:22,429 times those things come with a cost. And and that's just a fact of life in our economy. But 491 00:49:22,669 --> 00:49:29,628 let's talk about it here, okay? Where are we at right now? Well, nationally as of today, which we 492 00:49:29,629 --> 00:49:35,949 recorded this episode on October 1st. Triple A's daily national average for diesel is 493 00:49:35,950 --> 00:49:41,309 $6.39 per gallon. Now that's down from 494 00:49:41,310 --> 00:49:46,388 $6.51 a gallon just a week ago, but it is up from 495 00:49:46,389 --> 00:49:53,070 $5.63 a gallon one month ago. And here's the number that's kind of scary. 496 00:49:53,949 --> 00:50:00,549 A year ago, we were sitting at $3.70 a gallon. October 1st, 2025, the 497 00:50:00,549 --> 00:50:07,349 national cost of diesel was $3.70 per gallon. Right now it is $3 or 498 00:50:07,350 --> 00:50:14,229 excuse me, $6.39 a gallon. That's a 72% more expensive gallon of 499 00:50:14,230 --> 00:50:20,628 diesel than we were sitting at one year ago today. That's where it gets scary. That is a big 500 00:50:20,789 --> 00:50:26,829 number by percentage of increase year over year. Uh, and something that's even crazier. Triple A 501 00:50:26,870 --> 00:50:33,679 says the national diesel average reached that $6.50 2 or 53 cent mark 502 00:50:33,679 --> 00:50:40,199 back on September 22nd. That was only eight days ago. That's the highest national average the 503 00:50:40,199 --> 00:50:46,958 triple A has ever recorded. So when we repeatedly I talked to Thad about this. We talked 504 00:50:46,959 --> 00:50:53,718 about Out of Control. We talked about crazy. We used the word uh, that's that's pretty 505 00:50:53,719 --> 00:51:00,320 explanatory. Here in unprecedented. It has never happened before. We have never 506 00:51:00,320 --> 00:51:07,039 seen a national price be as high as $6.53 a gallon. And the federal 507 00:51:07,039 --> 00:51:13,799 government's numbers are telling the same story. Last week, the IEA's latest figure, which was for 508 00:51:13,799 --> 00:51:20,360 September 28th, was $6.38 per gallon. Now that is down 14.7 cents from the 509 00:51:20,360 --> 00:51:27,279 previous week, but $2.62 a gallon higher than one year ago 510 00:51:27,919 --> 00:51:34,159 now. Triple A's October 1st state data shows a massive 511 00:51:34,159 --> 00:51:41,119 geographic spread here. As you guys know, it can change just state to state. All you can cross is 512 00:51:41,120 --> 00:51:47,839 that hypothetical border between Florida and Georgia or Alabama and Missouri. I mean, there's so 513 00:51:47,840 --> 00:51:53,159 many different places where the fuel can. Uh, you know, North Carolina to South Carolina. I mean, 514 00:51:53,159 --> 00:51:58,120 those two don't even sound that much different to me, but they will be when you look at fuel costs 515 00:51:58,120 --> 00:52:03,600 and maybe it's marginal, but maybe it's not. California, we all knew, was going to be the 516 00:52:03,600 --> 00:52:09,879 monster here. California is weighing the national average, heavier than anyone else is, with an 517 00:52:09,960 --> 00:52:16,878 average per gallon diesel price right now of $8.38 per 518 00:52:16,879 --> 00:52:23,369 gallon statewide. California actually sets its own triple a record of And 519 00:52:23,370 --> 00:52:30,049 $0.44 a gallon. On September 22nd, the same day, we set Triple A's national average 520 00:52:30,050 --> 00:52:35,969 record. Texas, however. Well, they're on the other end. And Sunbelt, you're going to love to hear this. 521 00:52:36,009 --> 00:52:42,969 Uh, Texas is only paying $5.80 per gallon, but even there, the number is brutal as Texas 522 00:52:42,969 --> 00:52:49,889 diesel was only $3.21 a gallon just one year ago. So I've got some, 523 00:52:49,889 --> 00:52:55,969 uh, top and bottom ten here for you or, excuse me, top and bottom five. Let's talk about the five 524 00:52:55,969 --> 00:53:01,888 most expensive states first, and then I'll give you the five most affordable states. Uh, when we're 525 00:53:01,889 --> 00:53:06,849 talking about diesel prices here, I already blew the lead on this one. California is going to be in 526 00:53:06,849 --> 00:53:13,209 at the top with the most expensive diesel price in the country. I already said it. $8.38 a gallon. 527 00:53:13,210 --> 00:53:20,049 Can you imagine $8.38 a gallon if you got a 25 gallon tank is running you, 528 00:53:20,169 --> 00:53:26,449 uh, a lot of money compared to what it was just one short year ago. That hurts. It doesn't matter 529 00:53:26,449 --> 00:53:33,289 if you're driving a big truck or a small diesel truck. That is outrageous 530 00:53:33,290 --> 00:53:40,288 just to put a term on it. Okay. Uh, by comparison, the second highest cost state 531 00:53:40,289 --> 00:53:45,209 for fuel right now is the state of Washington out here in the great Pacific Northwest. And we can 532 00:53:45,210 --> 00:53:50,249 debate how great it is when we talk about fuel prices like this. Washington currently paying 533 00:53:50,249 --> 00:53:57,089 $7.39 a gallon. That's a full dollar above the national average. And of course, we've got 534 00:53:57,090 --> 00:54:03,609 California sitting at $2 above the national average. My state of Oregon. Well, listen, I'd love 535 00:54:03,610 --> 00:54:09,330 to tell you it's a lot better, but it's really not. We're sitting about $0.50 above the national 536 00:54:09,330 --> 00:54:16,009 average right now across the state of Oregon. $6.80 a gallon. Uh, coming in at the 537 00:54:16,009 --> 00:54:22,979 third most expensive. Now, I just took a 7.5 hour trip both ways across the state of Oregon, I 538 00:54:22,979 --> 00:54:29,899 traveled on I-5 from Eugene north to Portland about two hours, and then I took a right 539 00:54:29,899 --> 00:54:36,779 and I went down Interstate 84, headed east all the way to almost the very border of Oregon on the 540 00:54:36,779 --> 00:54:42,979 eastern side. And what I'll tell you is I saw gas or diesel prices as high as like 541 00:54:42,980 --> 00:54:49,898 $7.90 a gallon, but I also saw them as low as, you know. 656 40 in 542 00:54:49,899 --> 00:54:56,138 some of the more rural areas, if you're buying diesel along I-5 at any of the big truck stops 543 00:54:56,139 --> 00:55:01,738 right now, you're going to feel it. And, you know, I could just be talking about Oregon right now, but 544 00:55:01,739 --> 00:55:07,219 I'm not. I'm talking about I-5 from the Canadian border all the way to the border of Mexico. You're 545 00:55:07,219 --> 00:55:13,620 not finding an average fuel price below $6.80 a gallon, and you might be paying as much as 546 00:55:13,620 --> 00:55:20,339 $8.40 or more, depending on where you're at. Now, I know that there's very few Cypress trucks, if any, 547 00:55:20,379 --> 00:55:25,099 that get all the way out here to the West Coast. But I want you to understand these West Coast 548 00:55:25,100 --> 00:55:30,418 prices that we're seeing because, like I said, they are weighing this national average like you can't 549 00:55:30,419 --> 00:55:36,339 believe. Um, Alaska is another one. Obviously. I don't think we've got any Cypress trucks going to 550 00:55:36,379 --> 00:55:42,579 Alaska, but it takes a bit of a heavier lift to get the diesel up to Alaska. Uh, of course, some of 551 00:55:42,580 --> 00:55:46,658 it, some of it going to be coming in by ship and just stopping right there and not having to go 552 00:55:46,659 --> 00:55:51,300 any further. But that's not going to be the case for all of it. So in Alaska right now, we're seeing 553 00:55:51,300 --> 00:55:58,019 an average diesel price of $6.60 a gallon. And here's kind of an outlier. Okay. Our fifth 554 00:55:58,019 --> 00:56:04,939 most expensive state for diesel by the gallon right now is actually Pennsylvania, which 555 00:56:04,939 --> 00:56:08,979 that's out there on the eastern seaboard. That's a state you guys might actually get to drive 556 00:56:09,020 --> 00:56:14,619 through or have to drive through, uh, from time to time. And in Pennsylvania right now, they're paying 557 00:56:15,870 --> 00:56:22,709 $0.07 a gallon. Uh, $2 less than what we're paying up in California or out 558 00:56:22,709 --> 00:56:28,149 in California, as I should say. Um, so let's just go ahead and on our maps, we draw a big red circle 559 00:56:28,149 --> 00:56:33,469 around the state of California until further notice. Okay, let's get these diesel prices down 560 00:56:33,470 --> 00:56:39,669 before anybody has to fill up over here on the West Coast. Now, by comparison, I told you Texas was 561 00:56:39,669 --> 00:56:45,909 actually the lowest cost per gallon in the nation right now as far as the average is 562 00:56:45,909 --> 00:56:52,148 concerned, at $5.80 a gallon. Let's talk about some of the other states that are running along the 563 00:56:52,149 --> 00:56:55,469 cheap side. And I think you guys are going to be happy with this because some of these states 564 00:56:55,469 --> 00:57:00,189 border Florida, and the rest of them are going to be kind of close by, and you might end up finding 565 00:57:00,189 --> 00:57:05,109 yourself there. And thank God for that, because you're not fueling up in California, Washington or 566 00:57:05,110 --> 00:57:11,350 Oregon. I think that's high fives all around. Louisiana is going to have the second lowest cost 567 00:57:11,350 --> 00:57:17,909 per gallon on diesel right now, at $5.90 a gallon, followed by South Carolina at 568 00:57:17,910 --> 00:57:24,709 $5.94 a gallon, Mississippi at $5.95 a gallon, and Georgia 569 00:57:24,749 --> 00:57:31,429 at $5.99 per gallon. The Triple A's full table is obviously the best live 570 00:57:31,430 --> 00:57:37,429 reference here, and you can just google triple A fuel prices. If you want to keep a finger on this 571 00:57:37,429 --> 00:57:43,588 and really understand what states are going to be the cheapest, um, that is updated about every week. 572 00:57:43,909 --> 00:57:50,189 Um, and the next thing I kind of come to here is how fast did this happen? Right. And it's been 573 00:57:50,229 --> 00:57:56,869 unprecedented. I will use that word again. It happened very fast. According to the 574 00:57:56,910 --> 00:58:03,830 US Energy Information Association, that's the IEA. On August 24th, the 575 00:58:03,830 --> 00:58:10,389 national average was $5.65 a gallon. Fast forward a week. We're actually down. We're at 576 00:58:10,390 --> 00:58:16,989 $5.60 a gallon. What? That's crazy. That's moving in the right direction. We like that. But hold on. 577 00:58:16,989 --> 00:58:23,468 One short week later, September 7th, we screamed up to just under $6 a gallon. 596 578 00:58:23,469 --> 00:58:30,370 September 14th, 627 September 21st, 650 and September 579 00:58:30,370 --> 00:58:37,189 28th $6.32. So a little bit of movement in the right direction. But 580 00:58:37,270 --> 00:58:43,590 this isn't simply about crude oil getting expensive. Okay. The EIA says US distillate 581 00:58:43,590 --> 00:58:50,229 inventories, which is the category that includes diesel, have fallen below their five year range. It 582 00:58:50,230 --> 00:58:56,628 forecasts inventories following falling below 100 million barrels in September and remaining below 583 00:58:56,669 --> 00:59:03,349 the five year low through the end of 2016. And for most of 2027. The agency points 584 00:59:03,389 --> 00:59:09,309 specifically to reduced international distillate supply from the Middle East, Russia and China, 585 00:59:09,310 --> 00:59:15,519 combined with strong U.S. exports right now. Reuters reported on September 21st that the 586 00:59:15,520 --> 00:59:22,399 global diesel shortage could persist all the way into 2027, with US stocks at exceptionally 587 00:59:22,399 --> 00:59:27,959 low levels for this time of year. And there was a significant new development today on October 1st. 588 00:59:28,000 --> 00:59:33,360 This is fresh breaking news. I know you won't hear this on October 1st, but it's as close as we can 589 00:59:33,360 --> 00:59:39,559 get it for you. Reuters reports that Chinese refiners have suspended most fuel product exports 590 00:59:39,559 --> 00:59:46,399 for October, as China works to rebuild its own inventories. That removes another potential source 591 00:59:46,399 --> 00:59:53,319 of diesel, gasoline and jet fuel from an already constrained global market. So the 592 00:59:53,320 --> 00:59:59,199 world isn't merely dealing with expensive oil, it's dealing with a shortage of refined diesel 593 00:59:59,199 --> 01:00:05,999 supply. And that's a little bit of an explanation behind the numbers, supply and demand. And of 594 01:00:06,000 --> 01:00:12,880 course, just the cost. As as supply goes down, demand either stays the same or goes up. The 595 01:00:12,880 --> 01:00:19,799 cost is going to rise. That's econ 101. I know some of you guys have been in that class before. So the 596 01:00:19,799 --> 01:00:26,198 question is, is what do we think as far as the experts are concerned, when is relief coming? I 597 01:00:26,240 --> 01:00:31,239 have to be kind of careful here because I don't know. There are signs of relief. Okay. But there 598 01:00:31,239 --> 01:00:37,639 isn't currently strong evidence for saying diesel is about to plunge back to normal. It's probably 599 01:00:37,639 --> 01:00:43,279 going to take some time. And you heard Thad say it. He's confident that it will. It's just a matter of 600 01:00:43,280 --> 01:00:50,119 when. The national EIA average just fell from 652 to 638 over the last week. We talked about 601 01:00:50,120 --> 01:00:56,279 that. And Reuters reported September 29th that recovering Middle Eastern crude exports helped 602 01:00:56,280 --> 01:01:02,639 push the prices a little bit lower. But the structural diesel problem remains. The EIA 603 01:01:02,680 --> 01:01:08,169 expects unusually low distillate inventories to persist through most of 2027, which we already 604 01:01:08,210 --> 01:01:15,169 said and Reuters survey of energy analysts also found that forecasts for 2026 crude prices 605 01:01:15,169 --> 01:01:20,969 had recently been revised upward because of prolonged Gulf disruptions. As I said earlier, 606 01:01:20,969 --> 01:01:26,889 we've got geopolitical stuff that's playing a massive part in this. Maybe playing the most 607 01:01:26,889 --> 01:01:33,089 important part, I think maybe is a bad way to put it. It's definitely the most important part. The 608 01:01:33,089 --> 01:01:38,649 same survey from Reuters found an expectation that conditions could become more favorable in 609 01:01:38,649 --> 01:01:45,249 2027 if shipping improves, Gulf production recovers and non-OPEC supply 610 01:01:45,250 --> 01:01:51,408 increases. And there's another wildcard here. Okay, the federal government is actively discussing 611 01:01:51,409 --> 01:01:57,169 interventions. Reuters reported September 30th that the administration was still considering a 612 01:01:57,169 --> 01:02:03,769 temporary diesel export ban or voluntary export restrictions, among other measures, 613 01:02:03,769 --> 01:02:09,929 while seeking additional emergency diesel releases from Europe. Analysts disagree about how 614 01:02:09,929 --> 01:02:16,169 effective some of these interventions would be and warn of possible unintended refinery effects. 615 01:02:16,850 --> 01:02:21,648 We finally seen diesel back away from its record high here in the last week, but the fundamentals 616 01:02:21,649 --> 01:02:27,929 haven't suddenly fixed themselves. Okay. Inventories remain extremely tight, global supply 617 01:02:27,930 --> 01:02:34,929 remains disrupted, and the EIA expects that inventory problem to persist well into 2027. So 618 01:02:35,010 --> 01:02:41,569 at this point we're kind of in a hurry up and wait scenario here. Now, Thad says Cypress Weekly 619 01:02:41,570 --> 01:02:47,850 Fuel bill has gone from roughly 550 K to somewhere between 700 and 800 K and 620 01:02:47,850 --> 01:02:54,769 approximately $250,000 weekly hit at the high end, give or take. He describes Fuel as Cypress's 621 01:02:54,769 --> 01:03:00,209 second largest operating expense, now approaching payroll. We've already discussed that. And then he 622 01:03:00,209 --> 01:03:05,419 talked about the driver level number. Cypress trucks range mostly from six and a half to eight 623 01:03:05,460 --> 01:03:10,739 and a half miles per gallon, and that estimates that two mile per gallon difference can equate to 624 01:03:10,780 --> 01:03:17,458 20 to $25,000 per truck per year. When we're talking about 450 trucks, 625 01:03:17,459 --> 01:03:23,819 you see how that sort of adds up. And that's why I use that word exponential a few times. 626 01:03:23,820 --> 01:03:30,779 Okay. 750,000. That's a lot of money. That said that if Cypress can 627 01:03:30,779 --> 01:03:37,020 get fuel solution compliance to roughly 90%, the company estimates it can save nearly $0.20 per 628 01:03:37,020 --> 01:03:43,898 gallon. That's a huge number. And you drivers that are listening to this right now can affect that 629 01:03:43,899 --> 01:03:50,699 number. Okay. And you're going to have more metrics and more raw data to look at here in the next 630 01:03:50,700 --> 01:03:57,699 few weeks, maybe over the next the course of the next month. So I hear a lot of you guys come 631 01:03:57,700 --> 01:04:03,699 on to this show, and you talk to me about the respect and adulation that you have for Cypress as 632 01:04:03,699 --> 01:04:10,620 a company and the people who run it, and you want to be a prideful employee, you take a lot of pride 633 01:04:10,620 --> 01:04:17,019 about where in that Cypress logo on your door, on your chest, on your hat, like I have it, or wherever 634 01:04:17,020 --> 01:04:22,899 else you might wear it. Well, now's the time to really walk the walk here. Okay. It's easy to talk 635 01:04:22,940 --> 01:04:28,180 the talk. Everybody likes the company that they work for. Everybody got miles. Everybody's got 636 01:04:28,219 --> 01:04:33,179 loads. Everybody's making money. Well, how can you give back a little bit and maybe even put a 637 01:04:33,180 --> 01:04:38,179 little bit more money in your pocket in the process? This fuel Solutions thing that we talked 638 01:04:38,180 --> 01:04:44,419 about today is a real big part of that. And there will be bonus structure applied to it once we get 639 01:04:44,419 --> 01:04:49,620 it rolled out. And once we figure out exactly how the whole thing is going to work. So dig deep and 640 01:04:49,620 --> 01:04:54,178 find that competitive nature. Look at that guy that you always talk to. You spend your days 641 01:04:54,179 --> 01:04:59,060 talking to on the phone. Or maybe you guys got a party line and there's 5 or 6 of you have a 642 01:04:59,060 --> 01:05:04,509 little friendly competition there. See if you can get that MPG up to that 8.5 number. See if you can 643 01:05:04,509 --> 01:05:11,389 get that compliance within the app. Eventually up to 85 or 90%. Um, see if you can get 644 01:05:11,390 --> 01:05:17,109 your idle time down. Uh, we've got Apus in the truck, and I know there's times to idle and times 645 01:05:17,110 --> 01:05:24,028 not to. But Thad gave a really good hard number there, about one tenth of a gallon burnt over the 646 01:05:24,029 --> 01:05:30,549 course of an hour by your Apu, compared to burning an entire gallon over the course of an hour. Uh, 647 01:05:30,549 --> 01:05:37,069 when we're talking about fuel prices as high as $8.40 a gallon across the nation. 648 01:05:37,110 --> 01:05:43,349 That really adds up. And especially over, you know, ten, 12 hours in the sleeper berth, whatever it 649 01:05:43,350 --> 01:05:49,429 might be. So think about that. I think we brought you a lot of really good information here today. 650 01:05:49,470 --> 01:05:54,709 Everybody should have a better idea of where we're at nationally and where we're at as a 651 01:05:54,710 --> 01:06:01,549 company with Cypress and Sunbelt. So all I can say is do your part, uh, do your job. As 652 01:06:01,590 --> 01:06:07,909 Thad put it, everybody filling their role and being as efficient, as safe and as professional as 653 01:06:07,909 --> 01:06:13,869 they possibly can will help move the needle here, I promise that. And if you move the needle just a 654 01:06:13,869 --> 01:06:20,668 little bit on the micro level, just in your truck, just on your app, just your MPG, 655 01:06:20,909 --> 01:06:27,070 well, a bunch of drivers doing that, maybe 100 of you, maybe one fifth of the entire fleet doing 656 01:06:27,070 --> 01:06:34,070 that moves mountains on the other side. It's exponential guys. So commit to it and hopefully 657 01:06:34,070 --> 01:06:40,430 we'll see this fuel price come down a little bit and ease the strain on everybody. Because it ain't 658 01:06:40,430 --> 01:06:47,228 just trucking fleets. We're feeling it. Everybody's feeling it right now. My wife's a tattoo artist. 659 01:06:47,269 --> 01:06:52,389 Uh, you wouldn't think that diesel prices would affect that, but boy, they do, because guess what? 660 01:06:52,389 --> 01:06:57,239 You got to get there. Her products have to get to her. Her needles, her inks, all the rest of it. It's 661 01:06:57,240 --> 01:07:02,119 all more expensive right now. It doesn't matter what industry we're talking about, we're all 662 01:07:02,120 --> 01:07:07,679 feeling it. And maybe the best thing that we can all do is save a little bit of that fuel, even if 663 01:07:07,679 --> 01:07:14,199 it's just a tiny bit over and over and over again with every truck, every driver that's committed to 664 01:07:14,199 --> 01:07:20,400 it. We can move mountains here. And I'm really excited about the prospect of the Cypress Truck 665 01:07:20,400 --> 01:07:25,640 Lines podcast being able to have an effect on that. And I want to say thank you to Thad once 666 01:07:25,640 --> 01:07:30,400 again, he did not have to come in here and give us all of those raw numbers and make that 667 01:07:30,400 --> 01:07:35,800 announcement about the new app here on the podcast. But he did, because it's important, and 668 01:07:35,800 --> 01:07:41,599 it's how we as a company are going to weather the storm and come out smelling like a rose on the 669 01:07:41,600 --> 01:07:47,239 other side. Thank you all for joining us today for this very important episode of the Cypress Truck 670 01:07:47,280 --> 01:07:53,679 Lines podcast. Thanks to Thad Penland for his time. And of course, I always welcome you guys. If 671 01:07:53,680 --> 01:07:59,198 there's something you want to hear about. We have a lot of range on this podcast. We've talked about 672 01:07:59,199 --> 01:08:04,759 very serious stuff like fuel solutions and safety scores and that type of thing. We've also talked 673 01:08:04,760 --> 01:08:10,879 about the paranormal and told some crazy stories. And that right there is a really good picture of 674 01:08:10,880 --> 01:08:16,559 the range that we have on this podcast. So you as the driver listening. Head on over to 675 01:08:16,600 --> 01:08:22,959 podcast.cypresstruck.com and send me an email if there's something you want to hear about. You 676 01:08:22,959 --> 01:08:28,199 don't even necessarily have to take part in the episode. Give me the topic idea and let me take 677 01:08:28,200 --> 01:08:33,479 off and do what I do with it. If you want to join me here on the show and have a conversation about 678 01:08:33,480 --> 01:08:39,720 anything that involves Cypress Truck lines, that's where you're going to find me. podcast.Cypresstruck.com 679 01:08:39,720 --> 01:08:44,520 There's a ton of people out there that have my personal phone number that will give it 680 01:08:44,520 --> 01:08:49,159 to you. So if you've heard somebody on this show before and you know them and you'd rather get the 681 01:08:49,159 --> 01:08:54,569 number from them, do that. Give me a call, shoot me a text. I'm available and I want to make the 682 01:08:54,569 --> 01:08:59,329 episodes that you guys want to hear. We want to move the needle here on the Cypress Trunk Lines 683 01:08:59,329 --> 01:09:06,049 podcast, and we do greatly depend on you guys to help us do that. So let's crank out some 684 01:09:06,049 --> 01:09:12,049 awesome episodes here as we weather this diesel price storm. Uh, be very excited to see where this 685 01:09:12,049 --> 01:09:15,849 goes within the next couple of months, and we will definitely have some sort of follow up 686 01:09:15,849 --> 01:09:20,569 information for you. Once we have a reason to bring it to you. Thanks to everybody who clicked 687 01:09:20,569 --> 01:09:26,370 download today. We greatly appreciate you all. Please be safe out there, Cypress and Sun Belt and 688 01:09:26,370 --> 01:09:31,369 we will see you next week for another hour of content right here on the Cypress Truck Lines 689 01:09:31,370 --> 01:09:33,049 podcast. Be good out there.