Is Traffic Congestion Costing Your Fleet?

June 30, 2020

Is traffic congestion hurting your fleet’s bottom line? For many fleet owners, managers, and drivers, delays due to traffic have become routine. David Congdon, CEO of Old Dominion Freight Line (a shipping company), said in a statement that "unfortunately we've come to expect traffic congestion as a part of our daily lives.”

Congdon went on to say that analysis completed by the American Transportation Research Institute (ATRI) “illustrates what a significant productivity drain that congestion is on our industry and the economy at large.”

In this article, we will explain how traffic congestion is costing your fleet. In addition, we outline how to beat traffic congestion with a route planner via route optimization software.

How Traffic Congestion is Costing Your Fleet

So how much does traffic congestion really cost your fleet? More than you might think. According to the American Transportation Research Institute, “traffic congestion on the U.S. National Highway System added over $63.4 billion in operational costs to trucking in 2015.”

Traffic congestion is expensive. On average, congestion adds around $26,625 in additional per-unit operating costs (for fleet vehicles traveling 150,000 miles annually).

An ATRI study found that traffic congestion tends to be most severe in urban areas—88 percent of congestion costs are caused by only 17 percent of network mileage. Over 91 percent of total congestion costs are estimated to occur in metropolitan areas

What is Route Optimization?

Route optimization involves determining the most cost-efficient route for your fleet vehicles to take. It’s a process that is more complex than merely finding the shortest path between two locations.

Route optimization has to include all relevant factors. For instance, the number and location of all designated stops on a route or the number of turns or intersections along the route. Other factors may include left-hand turns where drivers must cross the line of traffic, the closest driver to dispatch on a route, or even traffic congestion for the time of day.

Route optimization software is required to crunch all the data and determine the best route for your drivers. The complexity involved in route optimization is immense. For example, with just one vehicle and 10 stops on a route, the number of unique possible ways to route the delivery driver is 3,628,800. With more drivers and more stops, the complexity increases tenfold. There is a good reason route optimization is completed by computer algorithms.

Benefits of Route Optimization Software

Helps Drivers Fight Congestion

Route optimization software can reduce costs associated with traffic congestion and help drivers beat congestion altogether. This software can help fleet managers and drivers plan out routes that avoid traffic bottlenecks. This can help shorten transportation times. 

In addition, route optimization software helps fleet managers provide real-time assistance to drivers. When a driver finds themselves in an unexpected traffic delay or congestion, fleet managers can support the driver with alternative routes. Whether anticipated or a surprise, route optimization software helps fleets fight congestion.

Improves Customer Satisfaction

Route optimization software ensures that fleet drivers arrive at their destination on time. Being able to accurately predict pickup and delivery times is a huge benefit of having a route planner. When companies have this ability, they are able to tighten service windows provided to customers and increase their on-time arrival rate.

Finds the Most Cost-Effective Routes

Route optimization software can help fleets solve the ‘Traveling Salesman Problem.’ The software uses advanced algorithms to find the best and most cost-effective route options for your fleet. It would be inconceivable to crunch the volume of data route optimization software does by hand.

Lowers Vehicle Mileage

One of the biggest benefits of route optimization software is that it creates routes based on vehicle and driver availability as well as taking into consideration scheduling constraints. It does all of this while minimizing the miles your drivers and vehicles take on their routes.

Route optimization software helps reduce overall drive time on the road by intelligently assigning fleet resources. Fleets benefit from cost savings when their vehicles drive fewer miles.

Driving fewer miles reduces fuel costs. This is a huge benefit as fuel costs can make up over 30 percent of overall expenses for fleets. Driving less also reduces vehicle maintenance costs and total cost of ownership via reducing wear-and-tear.

Spending less time on the road means your drivers are less likely to face traffic violations or accidents and their associated costs.

Lessens the Time Fleets Spend Planning Routes

Route optimization software beats manually designing routes hands-down. The latest route optimization software can decrease the amount of time fleet managers and drivers spend on route planning.

The software can determine the best routes for each of your destinations based on the cargo, vehicle, and time of day. It plans routes using real-time data and frees up fleet personnel to handle other critical jobs.

Decreases Fleet Vehicles in Rotation

Engaging in route optimization can cause fleet managers to reassess the number of vehicles they require to be productive. Using route optimization software, fleet managers are able to determine if they could perform at the same level using fewer vehicles.

When fleets are able to downsize to fewer vehicles they pay for fewer drivers’ salaries and less maintenance and fuel costs. These costs can add up and reducing the number of vehicles a fleet has can result in major cost reductions.


Traffic congestion costs American fleets billions of dollars each year in lost productivity. Let the team at Azuga Fleet™ help improve your fleet’s productivity, safety, and save your company money year after year.

Explore fleet tracking blog posts by category.

Safety

Accountability

Efficiency

Reporting

Rewards

Is Traffic Congestion Costing Your Fleet?

June 30, 2020

Is traffic congestion hurting your fleet’s bottom line? For many fleet owners, managers, and drivers, delays due to traffic have become routine. David Congdon, CEO of Old Dominion Freight Line (a shipping company), said in a statement that "unfortunately we've come to expect traffic congestion as a part of our daily lives.”

Congdon went on to say that analysis completed by the American Transportation Research Institute (ATRI) “illustrates what a significant productivity drain that congestion is on our industry and the economy at large.”

In this article, we will explain how traffic congestion is costing your fleet. In addition, we outline how to beat traffic congestion with a route planner via route optimization software.

How Traffic Congestion is Costing Your Fleet

So how much does traffic congestion really cost your fleet? More than you might think. According to the American Transportation Research Institute, “traffic congestion on the U.S. National Highway System added over $63.4 billion in operational costs to trucking in 2015.”

Traffic congestion is expensive. On average, congestion adds around $26,625 in additional per-unit operating costs (for fleet vehicles traveling 150,000 miles annually).

An ATRI study found that traffic congestion tends to be most severe in urban areas—88 percent of congestion costs are caused by only 17 percent of network mileage. Over 91 percent of total congestion costs are estimated to occur in metropolitan areas

What is Route Optimization?

Route optimization involves determining the most cost-efficient route for your fleet vehicles to take. It’s a process that is more complex than merely finding the shortest path between two locations.

Route optimization has to include all relevant factors. For instance, the number and location of all designated stops on a route or the number of turns or intersections along the route. Other factors may include left-hand turns where drivers must cross the line of traffic, the closest driver to dispatch on a route, or even traffic congestion for the time of day.

Route optimization software is required to crunch all the data and determine the best route for your drivers. The complexity involved in route optimization is immense. For example, with just one vehicle and 10 stops on a route, the number of unique possible ways to route the delivery driver is 3,628,800. With more drivers and more stops, the complexity increases tenfold. There is a good reason route optimization is completed by computer algorithms.

Benefits of Route Optimization Software

Helps Drivers Fight Congestion

Route optimization software can reduce costs associated with traffic congestion and help drivers beat congestion altogether. This software can help fleet managers and drivers plan out routes that avoid traffic bottlenecks. This can help shorten transportation times. 

In addition, route optimization software helps fleet managers provide real-time assistance to drivers. When a driver finds themselves in an unexpected traffic delay or congestion, fleet managers can support the driver with alternative routes. Whether anticipated or a surprise, route optimization software helps fleets fight congestion.

Improves Customer Satisfaction

Route optimization software ensures that fleet drivers arrive at their destination on time. Being able to accurately predict pickup and delivery times is a huge benefit of having a route planner. When companies have this ability, they are able to tighten service windows provided to customers and increase their on-time arrival rate.

Finds the Most Cost-Effective Routes

Route optimization software can help fleets solve the ‘Traveling Salesman Problem.’ The software uses advanced algorithms to find the best and most cost-effective route options for your fleet. It would be inconceivable to crunch the volume of data route optimization software does by hand.

Lowers Vehicle Mileage

One of the biggest benefits of route optimization software is that it creates routes based on vehicle and driver availability as well as taking into consideration scheduling constraints. It does all of this while minimizing the miles your drivers and vehicles take on their routes.

Route optimization software helps reduce overall drive time on the road by intelligently assigning fleet resources. Fleets benefit from cost savings when their vehicles drive fewer miles.

Driving fewer miles reduces fuel costs. This is a huge benefit as fuel costs can make up over 30 percent of overall expenses for fleets. Driving less also reduces vehicle maintenance costs and total cost of ownership via reducing wear-and-tear.

Spending less time on the road means your drivers are less likely to face traffic violations or accidents and their associated costs.

Lessens the Time Fleets Spend Planning Routes

Route optimization software beats manually designing routes hands-down. The latest route optimization software can decrease the amount of time fleet managers and drivers spend on route planning.

The software can determine the best routes for each of your destinations based on the cargo, vehicle, and time of day. It plans routes using real-time data and frees up fleet personnel to handle other critical jobs.

Decreases Fleet Vehicles in Rotation

Engaging in route optimization can cause fleet managers to reassess the number of vehicles they require to be productive. Using route optimization software, fleet managers are able to determine if they could perform at the same level using fewer vehicles.

When fleets are able to downsize to fewer vehicles they pay for fewer drivers’ salaries and less maintenance and fuel costs. These costs can add up and reducing the number of vehicles a fleet has can result in major cost reductions.


Traffic congestion costs American fleets billions of dollars each year in lost productivity. Let the team at Azuga Fleet™ help improve your fleet’s productivity, safety, and save your company money year after year.

Take a look at related posts.