5 Trimble Transportation Bid Don’t Bet The most common shipper complaints relate to the trailer itself. Frequently, you may hear a shipper talk of finding trailer damage or about not having enough on hand. It’s important to realize that shippers are sometimes inefficient in their loading and unloading of the trailers, and that they sometimes use them for storage. As a result, it’s important to have the trailer detention accessorial as a basis for charging the shipper for poor utilization of your trailer. As diesel prices fluctuate, it’s absolutely crucial that you are aware of the shipper’s fuel surcharge program and to have one of your own. As is the historical standard, the base line haul rate of any lane usually covers the cost of diesel up to $1.20 per gallon. For diesel prices above this “peg,” an additional fuel surcharge (FSC) per mile must be applied. When reading a contract, be sure to note how frequently the shipper calculates the FSC. The standard is weekly (mirroring the government’s reporting of diesel prices), but some programs only make these calculations and the associated payments on a monthly basis. This may be harmful to your business, as it’s important that these calculations closely adhere to your actual fuel costs. When reading through contracts, you may find some shippers to be unreasonable in their requirements. For example, you may opt to pass on an agreement with a shipper who requires 99% on-time service. On the other hand, these kinds of contracts present the opportunity for a dedicated arrangement, which may be valuable to your business if you can somehow meet these expectations. The same goes for equipment - shippers often have specific demands for the trailer, mostly pertaining to the age or condition of the trailer. If a company demands that you only use newer trailers to haul their product, this may be enough of a hassle that the contract isn’t worth it. Detention Without Power Performance & Equipment Standards Fuel Surcharge (FSC)
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