Before You Blame the Pump, Check Your Tires 

I am speaking with managers right now, and the conversation almost always starts the same way: fuel. Prices are brutal, margins are getting squeezed, and everyone is looking for somewhere to claw back a few cents per mile. Most of the time, they’re looking at routes, loads, driver behavior, and equipment specs. All the right places. 

But here’s what I’ve started asking: when did you last look at your trailer tire pressure? 

Nine times out of ten, the answer is some version of “we check them when we can” or “the drivers do walk-arounds.” And that’s where the problem lives. 

The Drain You Can’t See 

A tire that’s 10 PSI low doesn’t look underinflated. It looks fine. It rolls fine. But it’s quietly costing you on every single mile. 

According to the U.S. Department of Energy, a tire running 10 PSI low burns 2–3% more fuel per mile than a properly inflated tire. Get to 20–30 PSI underinflation (which happens faster than you’d think on trailers sitting at docks or drop yards for days at a time), and field testing puts that fuel penalty at 8–10%. 

With diesel sitting above $5 a gallon right now, that’s not a rounding error. For a fleet running hundreds of trailers, that’s a meaningful line item leaving the business every single month through tires that, on the surface, look perfectly fine. 

And according to FMCSA data, 55% of commercial vehicles have at least one tire running 10 or more PSI below optimal. This isn’t an edge case. It’s the norm. 

Why Trailers Are the Problem 

Tractors get attention. Drivers walk around them every day, and shop techs see them regularly. Trailers are a different story. They get dropped at docks, sit in yards, and spend days or weeks disconnected from anyone who might notice something’s off. 

By the time a tire issue shows up visually, you’ve already absorbed the cost: fuel, accelerated wear, and potentially a blowout that means a roadside call, a delayed shipment, and a safety incident. NHTSA data shows that tires underinflated by more than 25% are three times more likely to contribute to a crash. 

Only about 15% of trailers currently have any kind of tire pressure monitoring in place, compared to 25–30% of tractors (NACFE). That gap is exactly where the money is going. 

What We Do About It 

This is the problem Phillips Connect TPMS was built to solve. Our sensors give fleet managers continuous visibility into trailer tire pressure and temperature, reporting every three minutes with immediate alerts the moment something changes. If a tire starts losing pressure at 2 AM in a drop yard in Memphis, you know about it before it becomes a problem. 

The sensors install quickly and easily, last up to four times longer than competing solutions thanks to their energy efficiency, and come backed by an 8-year warranty. They’re built to live on your trailers for the long haul. 

The FMCSA studied the impact of TPMS across tractor-trailer fleets and found a 1.4 to 1.8% improvement in fuel economy. Layer in the avoided blowouts, extended tire life, and reduced roadside service calls, and the ROI conversation tends to get straightforward pretty quickly. 

Let’s Talk 

I’m not going to tell you trailer TPMS is a silver bullet for everything that’s happening with fuel prices right now. But I will tell you that in almost every fleet conversation I have, tire pressure is an overlooked line item, and it’s fixable fast. 

If you want to talk through what your fleet looks like and where the gaps might be, I’m easy to reach. No pitch deck required. 

►  Get in touch with Thomas

Phillips Connect and McLeod Software Advance Fleet Operations Through Smart Trailer Integration

IRVINE, Calif. – Jan. 21, 2026 – Every blind spot in a fleet costs time, money and customer trust. For decades, trailers have been treated as boxes on wheels, essential but invisible to the in-cab and back-office software platforms that power fleet operations. Phillips Connect is changing that with its new integration with McLeod Software, bringing real-time smart trailer insights, including trailer tire, lights and brake health, location, and advanced AI-powered cargo intelligence directly into the McLeod Transportation Management System (TMS). The result gives fleets a clearer and more complete picture of their operations.

This integration marks the first step in a broader Phillips Connect platform strategy focused on giving fleets seamless access to smart trailer insights inside the systems they already depend on. As more TMS providers, fleet management platforms, and operational systems embrace connected trailers, Phillips Connect is committed to helping fleets work within their existing software tools rather than around them. The goal is simple: provide every fleet with the trailer intelligence they need, no matter what software ecosystem they use.

“Having Phillips Connect smart trailer data flow directly into McLeod has been a game-changer for us,” said Mike Narkys, President of MNS1, the first fleet to successfully test and complete the McLeod-Phillips Connect data integration. “Our planners and dispatchers can see inside every trailer, understand how much space is left and decide quickly which trailers are ready to deploy, and which need to be repositioned. The Phillips Connect integration with McLeod helps us turn loads faster, reduce empty moves and put our trailers to work where they make the most impact for our customers and our drivers.”

Instead of operating with limited visibility, fleets running McLeod and Phillips Connect gain real-time insight into trailer location and next-level cargo intelligence. Phillips Connect CargoVision uses an AI-powered camera to show planners and dispatchers exactly what is inside the trailer and how much space remains, complete with volumetric measurements that support accurate load planning. For partial shipments and multi-stop operations, this level of visibility turns trailers into capacity-aware assets that can be routed, filled and utilized with greater efficiency. By surfacing this intelligence inside McLeod, fleets gain sharper visibility into their operations and a more effective way to improve utilization.

“With the Phillips Connect integration mutual customers gain cargo visibility and real-time trailer location inside McLeod,” said Ahmed Ebrahim, Senior Vice President of Strategic Partnerships and Integrations at McLeod Software. “This provides our customers with stronger insight into their networks and helps them plan more effectively across their fleet.”

“Trailers become active contributors to fleet strategy when data such as tire, lights and brake health, cargo intelligence, and location are accessible in the platforms they already rely on,” said Todd Hodges, Director of Product Management for Phillips Connect. “This integration is the first of many that will help fleets bring their trailer intelligence forward, no matter what software platforms they use to run their business.”

The Phillips Connect and McLeod integration is available now for fleets across North America. Phillips Connect helps fleets maximize their ROI on every trailer, every load, and every mile, turning visibility into a competitive advantage.

About Phillips Connect

Phillips Connect smart trailer technologies help the world’s largest fleets improve operations, safety and efficiency. The Phillips Connect platform of software sensors, cameras and telematics gateway innovations provide fleet managers and operational leads with real-time visibility into their trailers’ location, tire, brakes, cargo and door statuses, and more, saving customers time and money. Headquartered in Irvine, California, Phillips Connect is part of the Phillips family of companies, celebrating nearly a century of delivering innovative, reliable solutions that keep the transportation industry moving. For more information, visit www.phillips-connect.com.

About McLeod Software

McLeod Software is transforming the trucking and transportation industry with the leading software for trucking dispatch operations management and freight brokerage management. McLeod’s customers use business process automation and insight from business intelligence to improve their customer service, attract and retain the best drivers, and automate their crucial business processes. For more information, visit mcleodsoftware.com

Three Ways The Transportation Industry Can Build Operational Agility

In a rapidly shifting freight market, building operational agility is becoming essential for transportation leaders looking to stay ahead of volatility. In a new Forbes article, Phillips Connect’s General Manager and SVP of Products, Mark Wallin, lays out three practical strategies to help companies adapt and thrive.

Wallin emphasizes the importance of reallocating investment from simply expanding capacity to maximizing the utilization of existing assets, enabling fleets to get more value from what they already own. He also underscores the power of AI and automation to anticipate and plan for them proactively, driving smarter decision-making and reducing unpredictability. Together, these moves can help transportation organizations enhance efficiency and better navigate uncertainty. Read the full article here:

 

The 1%: Understanding Trailer Utilization 

It’s safe to say that ROI is a crucial factor in any educated business decision – especially in transportation. Fleets want to know that their investments are worth the financial commitment. But what they don’t know is that the “seemingly smart” investment of a new trailer might in fact cost them money. 

Trailer utilization is often overlooked as a major player in a fleet’s ROI. Lack of proper utilization can result in superfluous trips made, extra money wasted on fuel, unnecessary “wear and tear” on your trailer, and significantly slower trailer turn time. If a fleet can improve the way it uses its current inventory, it could reduce its trailer inventory by anywhere between 1 and 20%. Although that percentage seems relatively small, if you look at a fleet with 10,000 trailers, 1% would eliminate the need for 100 trailers. That’s 100 trailers stuck in the drop yard and ultimately, generating no revenue. If that didn’t drive the point home, the current market price of a trailer is now $40,000 on average. So the 100 trailers sitting in your drop yard cost your operation $4 million – just to sit there and depreciate. 

Once you can properly assess your fleet capacity, you may realize that you only need 80 percent of the trailers you currently have. Maybe you can haul 10% more freight with the same amount of trailers you already have. So that 1% could really be 20%, adding more than $1,000 per year in additional revenue on each trailer. The numbers don’t lie. Fleet capacity matters!

Remember: More loads with the same trailers = more revenue.

In a separate scenario, let’s assume a fleet has 2 loads to transport that day. With 1 trailer, the fleet can haul 1 load. But with 2 trailers, the fleet can haul 1 load – or 2 loads. With the ability to fully understand its total trailer capacity from the inside-out, the fleet can increase its efficiency and utilization, hauling 5 loads in 3 trailers rather than 5 loads in 6 trailers.

In the same scenario, a fleet that sends trucks looking for empty or healthy trailers is burning excess deadhead (unpaid) miles, which can result in millions of unnecessary miles annually. Let’s not forget the cost of fuel for those millions of miles or the maintenance costs that the wear and tear will inevitably incur.

So with all this information, how can you better understand your trailer, increase your operational efficiency, and truly master trailer utilization? 

The implementation of sensors, gateways, and smart technology on trailers is changing the way fleets manage their most valuable assets. Sensors like Phillips Connect’s CargoVision™ can provide a real-time glimpse inside the trailer, offering a volumetric view that predicts how full a trailer is and even suggests the time it will take to unload. Unlike other cargo sensors, this camera is mounted in the rear and is forward-facing to offer the fleet managers an unobstructed view of the load. 

Phillips Connect takes it one step further with its detention scheduler tool in the Connect1™ user interface. With this, carriers can put in detention schedules based on a specific geofence category or other attributes. Phillips Connect’s model looks at entry time, when the clock starts, the number of free days, and if detention should end when the trailer goes from loaded to empty on an inbound trailer, outbound trailer, or both. It also allows for a graduated charging schedule (ex. Day 1 = $20, Day 2 = $20, Day 3 = $50, etc.). The Connect1™ detention scheduler is customizable and can be accessed from anywhere and at any time. Our customers’ goal is to not bill detention, but to rather help their own customers increase trailer turn time – because hauling freight means generating revenue.

Nussbaum, a very distinguished Phillips Connect partner, places significant importance on its drivers because finding a trailer in the right status can make or break the fleet’s productivity. During the Phillips Connect ROI exercise, Nussbaum assumed $100 of extra detention per trailer per year over a 10-year period. In the model, the assumption was made that detention would yield $1M over those 10 years. Its overall ROI assumptions yielded an expected ROI percentage of 653.30% with the payback period of 0.38 years.

In 19 months (January 2021 – July 2022), actual billable detention on just one customer was recognized at $363K using the Connect1™ platform. When annualizing Nussbaum’s customer example over the 10-year model, it would collect more than $2M in detention, taking its original ROI assumptions from 653.30% to 718.20% – and reducing its payback period from 0.38 years to 0.34 years. Now imagine applying the Connect1 detention model across your entire fleet. That’s the power of trailer utilization.

Don’t get stuck in the drop yard. Visit https://www.phillips-connect.com to learn how Phillips Connect can increase your ROI today.

 

Frequently Asked Questions

What is fleet utilization?

Fleet utilization measures how effectively a fleet’s vehicles are being used by  comparing actual operating hours or miles against total available hours or assets. High utilization means trucks and trailers are working productively and making money for the organization instead of sitting idle.

How does trailer tracking directly improve our fleet’s asset utilization?

Trailer tracking provides the real-time data necessary to make smarter, faster decisions. By knowing the exact location and status of every trailer whether it’s empty, loaded, or awaiting unloading,dispatchers can quickly assign the closest available trailer to a new job. This drastically reduces the amount of time trailers sit idle in yards or at docks, effectively allowing you to do more jobs with the same number of assets and potentially delaying capital expenditures on new equipment.

How do I maximize fleet utilization?

You can improve utilization by:

  • Using telematics and tracking to reduce idle time and empty miles.
  • Right-sizing your fleet so assets match demand.
  • Optimizing routes and loads with dispatch software.
  • Improving maintenance planning to reduce downtime.
  • Sharing visibility between drivers, dispatch, and customers to avoid delays.

Phillips Connect helps fleets maximize utilization by providing real-time trailer visibility, health data, and alerts through its Smart7 gateway and Connect1 platform, so assets spend more time on the road and less time sitting idle.

Optimize Efficiency and Reducing Waste with Smart Sensor Technology

Discover how Phillips Connect is revolutionizing fleet management.

In today’s demanding logistics landscape, every mile, load, and minute matters. Fleet operators are under pressure to cut costs, reduce emissions, and maximize uptime. The solution? Smarter trailers, powered by advanced sensor technology.

Our latest white paper, “Optimizing Efficiency and Reducing Waste with Smart Sensor Technology,” explores how real-time data and smart diagnostics are helping leading fleets.

Download the full white paper to learn how the smartest fleets are doing more with less.

Phillips Connect Smart Trailer Technology: Fleet Optimization that Means Something

At Phillips Connect, we know that the transportation industry is more competitive than ever. Fleet owners are constantly seeking ways to improve efficiency, reduce operational costs, and increase your ROI, and it is our goal to provide meaningful, actionable insights to help your bottom line. 

Phillips Connect offers smart trailer solutions that translate into real savings that optimize your fleet. Our solutions harness cutting-edge technology that helps you build a better business. 

Tangible Returns

We are not here to simply claim ROI – let us show you the difference that our smart trailer technology makes. Let’s dive into the real numbers and the return you can expect.

If a 10,000 trailer fleet invested in Phillips Connect smart trailer solutions they could expect annual benefits such as: 

  • 45 new tractors: By maximizing the efficiency and safety of existing trailers, you can redirect funds that would have been spent on additional tractors, thus expanding your fleet without the additional capital expenditure.
  • 165 new trailers: The data-driven Smart Trailer insights help extend the lifespan of your current trailers. Delaying new trailer purchases means you can free up funds for other investments.
  • 109 more dispatchers: Improved fleet visibility and predictive maintenance reduce the workload on your dispatchers, allowing you to consider expanding your team and handling a larger operation.
  • 1.3 million gallons of diesel: Optimizing routes and getting the most out of every stop means significant fuel savings and lower operational costs.
  • 82 more drivers: As your fleet becomes more efficient and reliability improves, you can add new drivers to meet growing demand.
  • Over 13,000 tires: The Smart-Trailer system helps you make proactive decisions about tire maintenance and replacement, leading to substantial savings over time.

Understanding the Benefits

The Phillips Connect smart trailer system combines cutting-edge technology to provide comprehensive insights into your fleet’s performance and safety. The Smart7 gateway combined with our comprehensive sensor solutions provide monitoring for various critical components for your trailers, including:

  • Remote Pre: Perform remote diagnostics on vital systems for seamless maintenance and safety, even when tractor power is unavailable.
  • TPMS: Monitor tire pressure and temperature to reduce costs, enhance safety, and prevent violations.
  • ATIS Regulator: Ensure precise tire inflation for maximum fuel efficiency, tire longevity, and overall safety.
  • Door: Safeguard your cargo and streamline operations by tracking door events, enhancing security, and providing proof of door status.
  • CargoVision: Gain visibility within minutes into your cargo’s condition, deterring theft, streamlining loading processes, and providing proof of detention when needed. With features like load securement verification, floorspace and volumetric utilization, and machine learning outputs, CargoVision is a game-changer for the transportation industry. 

Connect1 — the Central Hub for Your Smart Trailers

The Phillips Connect Connect1 platform is user-friendly and keeps all of your valuable sensor data at your fingertips in real time. The platform provides powerful features such as:

  • Lightning-fast drill down and powerful search tools to sift through data in seconds.
  • Custom reporting tools and maintenance schedules to manage assets efficiently.
  • Advanced notifications, geofencing, and sub-geofencing for real-time location tracking and alerts.
  • Visibility to asset list, immersive fleet analytics, and custom dashboard for comprehensive fleet insights.
  • Maintenance management and asset alerts to preemptively tackle issues and reduce downtime.

 

The Phillips Connect smart trailer solution empowers fleet owners to make data-driven decisions that have a tangible and substantial impact on their bottom line. By equipping a fleet of 10,000 trailers with Phillips smart trailer solutions, the potential return extends beyond cost savings. It can lead to fleet expansion, improved safety, and the opportunity to invest in significant advancements.

The real numbers are not only impressive but also demonstrate that the Phillips Connect smart trailer system is a game-changer for the transportation industry. In a landscape where efficiency and profitability are paramount, this technology is your key to success.

Investing in this innovative solution is about going beyond cost savings, and transforming your fleet. With Phillips Connect smart trailer solutions, the road ahead looks more promising than ever.

Click here to contact the Phillips Connect Solutions team.