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At more than $3 a gallon, it costs him nearly $90 to fill-up his personal vehicle, fuel surcharges for his logistics customers are higher than ever and drivers hired by CaseStack to transport goods are paying nearly $4 a gallon for diesel.

But Sanker has found the bright spot in the bad news: rising energy costs have caused more companies to turn to third-party logistics companies in search of ways to cut costs and increase their bottom line.

CaseStack’s Fayetteville sales team has been up and running since October. Sanker said he has a staff of 15 full-time sales coordinators and will soon increase that number to about 20 because business has been so good.

“There is definitely more competitive pressure in the marketplace right now,” said Eric Wolfe, vice president and general manager of BNSF Logistics in Springdale. “Fuel has been the main driver and it has caused people to evaluate their costs and find more creative efforts to lower their operating expenditure.”

In the past, technology and marketing were the financial focal points of many companies, Sanker said. Fuel was relatively inexpensive and profit was the main concern.

But increased fuel and manufacturing costs, coupled with the slowing economy, have forced many executives to turn their attentions to operating expenses, packaging costs and the price of moving products.

“Everyone is looking for a better system right now,” Sanker said. “We want to have the best system and to do that we have to constantly look for new ways to make the process more efficient.”

Steve Jones, owner of On Time Logistics in Springdale, which coordinates just-in-time critical deliveries, said his phone has been ringing more than usual over the past two months.

“A lot of the people I’ve spoken with are simply looking for better service,” said Jones, who employs 10 regional drivers. “Many understand that fuel prices are high and are trying to get the most for their money.”

Nationwide, only about a third of the third-party logistics firms polled for the International Warehouse Logistics Association’s 2008 Business Outlook said they expect to see gains of 10 percent or more in 2008. Many firms cited fuel prices and decreased commodity movement as obstacles to a profitable year.

Sanker and Wolfe both agreed that the hardest hit sector of the third-party logistics industry will be the less-than-truckload carriers.

“This is more of a freight recession right now,” Wolfe said. “There is a strong correlation that exists between high gas prices and the truckload market. The high-demand years really helped the truckload sector to boom but some companies just won’t be able to sustain the high fuel costs and consequently we’ll start to see more capacity exit the market.”

Sanker said there is still more than enough capacity on the roads, which means trucking firms will still be competing for business and keeping prices as low as possible.

From this point forward, Sanker said he believes the idea of consolidation will be a key point for many companies, which means calling in the logistics teams to find ways to streamline the packaging, shipping and storage process.

“I think from here on out the idea of consolidation will be a focal point of a lot more companies,” Sanker said. “It’s the fastest and easiest way to decrease costs. No one is going to turn you down if you can walk in and show them a way to save them money, even if it’s only 4 percent.”