The carrier provided us with data from 30 fleet managers on several dependent variables (average revenue per unit, turnover rate, average net fuel cost per mile [NFC], and average accessorial charge
per mile [ACPM]).
An example of an accessorial charge
would be port handling.
"Your Aunt Sally doesn't know how to negotiate a rate, so she gets hit with an accessorial charge
. But if I'm distribution manager for Dell and UPS tells me there's an accessorial charge
, I'm immediately on the phone with FedEx threatening to move my account.
And in a July 25 letter, Senators Tammy Baldwin (D-Wisconsin) and John Kennedy (R-Louisiana) asked the STB to take action on demurrage and accessorial charges
and implement the recommendations suggested by a Board task force on rate reform.
"They're evaluating not only contractual freight costs, but also exposure to spot market rates and accessorial charges
," states the report.
"Carriers are doing a better job capturing accurate dimensional pricing and accessorial charges
, and shippers should recognize that this environment isn't temporary and will continue for most of 2018." Carrier executives say that the most sophisticated shippers realize that their rates must rise in this tight capacity market, but some continue to hunt for the best price as they increasingly put more of their freight on the market for open bids.
The new base rates, rules tariff and accessorial charges
for FedEx Freight will be available at fedex.com on March 31, 2014.
WWD is now able to capture accessorial charges
for value-added work performed for owners and track the total time spent on work for a particular client, order or account.
"In the trucking and transportation industry, we often have disputes related to billing and rating, chargebacks, routing guides, lumper fees, detention charges and other accessorial charges
," comments Doug.
Some carriers are attempting to modify the way they impose demurrage and accessorial charges
to address shipper concerns, but some shipper groups are craving more changes.
"What is the rate based on and is 87% a good discount?" Upon review, we also noticed accessorial charges
including a fuel surcharge.