Fuel Surcharges Top Accessorial Freight Charges for Shippers, Study Says

According to a new study, fuel charges top the list of the customary types of charges and rates implemented by shippers beyond the basic linehaul fees.

The study, conducted by Transplace, a leading provider of transportation management services and logistics technology, included data from more than 150 shippers and over $12 billion in annual freight spend.

“Market-driven benchmarks equip transportation professionals with the knowledge they need to best understand their cost position relative to the freight marketplace and position themselves to better optimize  their procurement efforts,” said Ben Cubitt, senior vice president, consulting & engineering for Transplace.

Observations from the accessorial benchmark study include:

Fuel

Fuel surcharge (FSC) is the most common accessorial published by shippers (93 percent of companies in the study), with the vast majority utilizing a cents-per-mile-based schedule versus a percentage-based fuel method.

For those companies using the cents-per-mile schedule, most still peg their FSC starting point around the traditional $1.17 to $1.24 range. The vast majority (73 percent in total) were almost evenly split between $.05 and $.06 increments beyond the starting peg.

Intermodal fuel surcharges were also included in the study, identifying that the surcharges between the truckload and intermodal can vary as much as $0.33 and as little as $0.12.

Detention with Power

The study revealed that 81 percent of companies are keeping to the accepted industry standard by allowing two hours free detention, with only five percent of companies allowing less than two hours.

Most companies (66 percent) pay in increments of 15 minutes, with an additional 26 percent of companies paying by the hour. This is up slightly from the 2011 study, which reported 60 percent of companies paying in 15 minute increments and 30 percent paying by the hour

Detention charges have remained stagnant over the last two years, ranging from $25 to $90 per hour, with most shippers allowing $60 per hour

Stop-off Charges:

Fifty-six percent of shippers claimed an increasing charge per stop scale, while the 43 percent balance held a flat charge per stop – charging various levels between $50 and $100. The most common stop-off charge is $100 for the first stop, $150 for the second stop, and $250 for every stop thereafter.

Truck Order Not Used

For shippers that do not use a truck to which they tendered a load, “truck order not used” charges typically apply. The study showed that of the 64 percent of shippers who apply these charges, 43 percent utilize a $250 charge, with $150 being the second most common level at 39 percent.

About Transplace
Transplace is a non-asset, North America-based third party logistics (3PL) provider offering manufacturers, retailers, chemical and consumer packaged goods companies the optimal blend of logistics technology and transportation management services. More info at: www.transplace.com.

Tags: Transplace

Category: Featured, Fuel & Oil, General Update