In the 1985 small package carriers had 5 assessorials, today they have in excess of 40. It is a known fact that the motor carrier industry watches and learns from the small package carriers on what will work and what might not work. Well the motor carrier industry has learned that assessorials work and they can generate nice income from those extra charges. Small parcel carriers claim that 50% of their revenue comes from assessorials. Just look at your freight bill to confirm that statement, starting with fuel surcharges, along with weights and inspections right at the top of the list. One major motor carrier has stated that there auditing department of insuring they are capturing all assessorials has passed there rating department in size. On the truckload side, detention time is being looked at and billed more frequently.
Combating these issues as a shipper takes time and some creativity, and maybe the help of bringing on a third party freight management company who has the experience to help reduce these expenses.
The discussion of packaging is another item taking center stage. The classification system used by motor carriers averages 10% difference between class’s, what can you do to reduce the classification of your company’s product? One savvy shipper realized that shipping basket balls deflated made much more financial sense than shipping them inflated. Look how many more balls he shipped deflated rather than inflated. Look at laundry detergent, the change from water being in a gallon of laundry detergent to small condensed packages.
