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Old 03-21-2008, 04:05 PM   #1
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Freight

Freight costs.

We all think gas prices have nothing to do with freight lines.

One of the largest freight lines has announced the following, along with notice that every Monday they will be revised.

Fuel surcharge 30 percent.

Residencial delivery. $72.00

Calling you to let you know they have your shipment, or, for delivery instructions, $25.00.

It won't be long before the extra charges will exceed the freight charges.

Is this the way it's going to be, or is it a game that freight lines have started?

We suggest that if you place an order that must be delivered by a freight line, have that shipment sent to a commercial address, or have it set up for a terminal pickup.

Andy
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Old 03-21-2008, 04:38 PM   #2
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The Surface Transportation Board has ruled that railroads can only use their "fuel surcharge" to actually recover fuel use costs, and it can't be a revenue generator. One railroad here in the East is looking at having to refund tens of millions of dollars over this. If the trucking companies aren't careful, they may wind up being told the same thing.
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Old 03-21-2008, 05:04 PM   #3
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Yeah, I was looking at a big pump that we may need to order for the park last night. Pump cost: around $500. Shipping: $700. Duh. I could drive to Albuquerque and pick the damned thing up for a hundred.

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Old 03-21-2008, 07:46 PM   #4
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Surcharge is another name for excuse to raise prices. Lots of companies are doing it now. Take cereal as an example, box of corn flakes last year maybe 7 cents of corn in it ;this year maybe 12 cents but they raised the price 75 cents and blamed it on us farmers. Got to love some of the corporate executives and their greed.
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Old 03-21-2008, 08:44 PM   #5
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Shipping and handling has long been a way to gouge the consumer. You see it in brick and mortar stores, internet stores, and ebay.
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Old 03-22-2008, 11:42 AM   #6
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Quote:
Originally Posted by Gen Disarray
Shipping and handling has long been a way to gouge the consumer. You see it in brick and mortar stores, internet stores, and ebay.
Shipping and handling, is far removed from "fuel surcharges," "residential delivery," and a "telephone call," to get delivery instructions.

Hello, they are a freight company.

But, maybe they get scared because of that big thing behind the truck, that's tail gating, and trying to pass the driver too.

Shipping has many more areas of true costs, than a "in person" customer.

Shipping costs are already built into the selling price by very large companies that do nothing but ship. But, the freight shipping industry, has forced extra charges that are sometimes more than the actual parts.

If those costs are not recouped, they will be out of business.

The costs to package the parts, the packaging material, preparing shipping documents and the labor involved, are not free. In fact at todays costs, these items can cost almost as much as the merchandise.

Then have special size boxes made, let say for an AC shroud. Tell the box supplier you only want enough for for a 3 to 4 month supply.

Be prepared to fall off your chair, even if you have your seat belt on, when you get the quote.

A small business cannot afford to put several tens of thousands of dollars into special box sizes.

As an example, we use a special size and require about one a month.

Ordering a two year supply of that box, brings the price down to about $25.00, per box.

If we bought enough for 3 to 4 months, as a smart company should, then the price for "just the box" goes to a little over $100.00.

Therefore while I somewhat agree with you, there are many special circumstances where your statement is not true.

Even small boxes today, that meet freight line specs, like Fedex and UPS, assuming you buy several months supply, still cost big bucks.

But the small business has a choice. Use cheap boxes, then submit a claim for damage. The freight lines will deny your claim because of insufficient packaging. Now what does the business owner do???

In fact, UPS cannot settle their claims anymore. Thats done by Crawford and Company, who never see the damaged box, but takes the word of a UPS driver, who will always say, "I don't know what happened."

So how come you see foot prints on the boxes, or holes punched in the boxes, or corners caved in?

Then add to that, the fact that you use double strength boxes to boot, and they will still deny your claim.

Now, you must call them and argue and argue until your almost blue in the face.

We have had our shipping boxes examined by UPS supervisors, several times. They always agree, "that we do an excellent" job with our shipping materials, and packaging.

Bottom line, is our account rep doesn't even call us any more to ask what happen.

We simply "deduct" from our bills, the amount of the damage, and he sees to it that it's paid. Saves everyone from getting headaches.

Then UPS today, ships everything "dimensional weight," even for ground shipments. Their automated processing likes to increase the size of the box, to something larger than it actually is. WHY???? Because the shipping cost increases. Now you have another fight on your hands when you call them to correct the error.

They will tell you that the box was "bulged" and/or your boxes are larger than you said. Again, back to having your shipping supplies inspected, another time.

Additionally, every time you, as the shipper" makes a mistake with the paper work, they charge you $5.00.

We came up with the same program, but it takes time too.

When UPS increases the size of the box, we deduct from our bill that additional amount, PLUS another $5.00 for their mistake.

They say we can't do that. Our response was "take us to court." They declined our offer.

We have been using our "pay back" system for several years, with no problem, until we get a new account rep, and then we start all over.

It takes time to examine the billing and even more time to correct their mistakes. Time is not free, not even in California.

The shipping problems, years ago, were nil. That is no longer true, by a long shot. With UPS, we have almost a weekly billing problem from them.

Then when it comes to motor freight, that's another problem within it self.

Damages about 80 percent of the time. Again, the business owner has to fight to get the problem resolved.

So please understand, our shipping industry has, for most part, gone south.

We all pay for their carelessness, and have next to nothing that we can do about it, in both their lack of care with the handling, and their outrageous "extra costs."

We can all live with it, or go fishing.

Ah, but even boats need parts.

Andy
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Old 03-22-2008, 12:23 PM   #7
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Deregulation,, don't you just love it?
More carriers, more competition, less costs, was the mantra of the day....
Every one benefits. LOL

Now, like the airlines we have a handfull of super giant carriers without regulation and very costly...
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Old 03-22-2008, 01:07 PM   #8
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Quote:
Originally Posted by nymphfishin
Deregulation,, don't you just love it?
More carriers, more competition, less costs, was the mantra of the day....
Every one benefits. LOL

Now, like the airlines we have a handfull of super giant carriers without regulation and very costly...
For those of you into this sort of thing, it was called the "Staggers Act".
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Old 03-22-2008, 06:16 PM   #9
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Quote:
Originally Posted by overlander63
The Surface Transportation Board has ruled that railroads can only use their "fuel surcharge" to actually recover fuel use costs, and it can't be a revenue generator. One railroad here in the East is looking at having to refund tens of millions of dollars over this. If the trucking companies aren't careful, they may wind up being told the same thing.
Pehaps if the same regulations applied to the trucking industry, they would see fit to pressure a reduction in the cost of diesel. Currently they have no reason to press for lower fuel.
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Old 03-25-2008, 01:27 PM   #10
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Freight

Some freight lines have announced that their fuel surcharge rates will change every Monday.

They now quoted a 3 percent increase from last Friday.

Where will it end?

We need to let our congressmen know about this ridiculous profit center, along with residential delivery charges.

If you had a business, immediately next door to your home, an extra charge of $72.00 is made to deliver it you your home instead of your business address.

If you order anything that must be shipped "motor freight," to avoid the $72.00 charge, have the shipment go to a commercial address, or arrange to pick it up at their terminal.

Andy
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Old 03-25-2008, 04:10 PM   #11
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Smart Post

Do you know about Smart Post?

My wife ordered an item from LL Bean. They gave the package to the US Post Office in Mass. The Post Office gave it to Fed Ex, was transport it to Los Angeles. The Post Office in Los Angeles was to give it back to Fed Ex for delivery in Laguna Woods, CA.

A tracking number is given to us by e-mail.

We tracked the package as far as the PO in LA, where it remained for nine days, was never delivered to Fed Ex, and was said to be lost.

LL Bean re-sent the item UPS ground and we got it in five days. LL Bean took this one in the shorts.

Not so smart, this "Smart Post".
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