Fleet Management News & Business Info | Commercial Carrier Journal
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JOURNAL fuel savvy M CCJ SYMPOSIUM PANEL: FLEETS SHOULD DETAIL FUEL SURCHARGES otor carriers have not always done a good job explaining their costs to shippers. But now that the tables have turned in favor of trucking, shippers are willing to listen, said a panel of fleet executives at the CCJ Spring Symposium in Birmingham, Ala. Negotiating weekly adjustments to fuel sur- charges is one example. Panelist Brent Nussbaum, president and chief executive officer of Nussbaum Transportation Services, a 200-truck carrier based in Normal, Ill., dispatched the company's chief financial officer on sales calls to explain the fuel surcharge. Nighty-eight percent of the company's fuel surcharges now are adjusted weekly instead of monthly or quarterly, he said. Panelist Gary Lewis, president of Pendulum Shift Consulting, said shippers and carriers still are not spending enough time talking about a fair fuel reim- bursement – one that is lane-specific with a daily reset. Discussions with ship- pers and carriers about the topic typically will last between four and six hours, he said. During the first two hours, shippers think carriers are trying to gain the upper hand. "Then they realize that this creates an environment where you are reimbursed for exactly what you purchased," Lewis said. Panelists agreed that educating custom- ers about the need to increase driver pay and utilization is bearing fruit. "Shippers are coming around and helping us be more effi- cient," said Steven Tapscott, vice president of sales and marketing for Miller Transporters, a 400-truck chemical hauler located in Jackson, Miss. Shippers are being more flex- ible with scheduling and allow- ing carriers to set appointment times for pickup and delivery. "They can't afford to spend more money – they are all oper- ating on minimum profit, but are cognizant of what is happening," Tapscott said. Developing a custom yield management system has helped Nussbaum Transportation target specific lanes for pricing adjustments. "It allowed us to give criteria on all of the lanes instead of saying we need a 3 to 5 percent rate increase," Nussbaum said. "We started attacking lanes and improving yield." Nussbaum has focused on growing with existing customers in the last couple of years. "We've explained the value we bring to them." – Aaron Huff 20 COMMERCIAL CARRIER JOURNAL | JULY 2012 Fleet executives talked about fuel surcharges during a panel discussion at the CCJ Spring Symposium in Birmingham, Ala. 11MTT2077 GET ON THE ROAD TO SAVINGS. Apply for the MICHELIN® Advantage Program at michelintruck.com. Copyright ©2011 Michelin North America, Inc. All Rights Reserved.