Case Study

Daytona Freight Systems: Saving on LRR Tires

Upgrading to fuel-efficient LRR tires at nearly half the cost of regular tires

Jun 25, 2023

Introduction

Daytona Freight Systems worked with Green Freight Assessments to halve their existing spend on tires while improving their fuel efficiency through accessing NRCan grants for LRR Tires.

$120k a year in cost savings realized
3% improvement in fuel efficiency projected
$0 in additional investment needed

Daytona Freight Systems is a leading Canadian-based logistics company with 25 years of industry experience and operating a substantial fleet of 300+ trucks and 450+ trailers. They’ve been recognized as one of Canada’s fastest growing companies, and have relationships with some of the nation’s largest suppliers.

"It was so simple to work with Green Freight Assessments. They were extremely professional and led the project end-to-end" - Gurnoor Kahlon, VP Sales

Opportunity

Daytona Freight Systems expressed a strong desire to look for opportunities to cut costs and optimize their fuel efficiency. We suggested accessing a government grant program called the Green Freight Program by Natural Resources Canada that subsidizes a myriad of equipment including LRR tires by as much as 50% of costs.

Green Freight Program - A subsidy program by Natural Resources Canada that reimburses funding up to 50% of the cost for tires, aerodynamics, anti-idling equipment, auxiliary power units for truck/trailers.

Partnering for change

Working closely with Daytona Freight Systems over a one-month period, Green Freight Assessments developed and executed a plan tailored to the company's needs. It became evident that Daytona was investing substantial sums in tires that offered limited fuel efficiency and wore out quickly. Green Freight proposed a plan that recommended specific LRR tires that fit their fleet, helped source and vet vendors, and completed the grant assessment and application for Daytona end-to-end.

Low Rolling Resistance Tires (LRR) The Low Rolling Resistance Tires are designed with special compounds, tread patterns, shallower depths and an enhanced casing profile to reduce rolling resistance and are projected to create a 3-5% improvement in fuel efficiency

Impact

The implementation of LRR tires yielded exceptional results, leading to immediate cost savings of $200 per tire or $120K per year solely on tire costs. Moreover, this transition is projected to create a remarkable reduction of approximately 125k litres of fuel, resulting in fuel savings of approximately $170k annually. The combined impact of these measures lead to total cost savings projected to exceed $290k annually.