It’s a difficult situation because carriers need to be compensated fairly for the increase in their costs and traders need to make a profit as well.
Nixa, Mo (PRWEB) October 17, 2012
Trucking members of BulkLoadsNow.com, an online freight matching service for the bulk trucking industry, are reporting dramatic fuel price increases over the past few weeks and little increase in rates. Most freight in the bulk trucking industry is scheduled on spot basis, eliminating fuel surcharge implementations to hedge against volatility in diesel prices. At a time when diesel prices are surging, it’s often the carriers that feel the pinch. This is a top discussion in BulkLoadsNow.com forum feature.
“Most commodities are traded on a specific price per bushel or hundred weights or tonnage with an exact freight cost in the contract,” said Jared Flinn, Operating Partner at BulkLoadsNow.com. “When fuel prices go up, more freight has to be paid, creating a freight variance or loss in commodities that are traded on extremely small margins to begin with. It’s a difficult situation because carriers need to be compensated fairly for the increase in their costs and traders need to make a profit as well.”
Some shippers and carriers have created their own fuel surcharge program, while others agree up front that rates will need to change if fuel cost increase or decrease.
BulkLoadsNow.com main objective is to create efficiencies in the supply chain, reduce empty miles and connect more trucks to loads. “Our services support the needs of shippers and carriers with simple, fast, and productive products at little, and often no cost, to our members,” Matt Fredin, Operating Partner said. “We stay involved with our members, learning their evolving needs and we react with solutions to help them.” BulkLoadsNow.com connect shippers and brokers with carriers that pull hopper bottoms, end dumps, belts, walking floors, pneumatics and liquid tanker trailers. Members interact through load and truck postings, forums, lane history, loads leads and automatic freight matching.