haulier rates – the basics
TRANSCRIPT
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Haulier Rates: Types of rates – the
basics
Mark Wilson
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Haulage can be a significant proportion of the Overall Supply Chain Cost.
Knowing your Product & Delivery Profile and using the most appropriate types of rates can help reduce this cost to a minimum.
In this presentation we’ll show you the different types of rates and what they are commonly used for.
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Used when load is not standard – e.g. Fabric, Machinery, Hanging Garments etc.
Positive: you can take advantage of the full height of the vehicle (usually height restriction on pallets)
Negative: you are paying for the whole space (full width and height)
Commonly used for: Clothing
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Uniformed “footprints” either Euro (33) or GKN (26), Stackable or Non-Stackable
Positive: easy rate matrix to use, easily compared with other hauliers
Negative: if non-stack then you are paying for the empty space above
Commonly used for: tinned food, wines & spirits, pharmaceutical
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Heavy items (small or large) – pay for space left on vehicle – e.g. Paper Rolls
Positive: easy to work out rate as usually not many bands (ie 0 to 250kg, 251kg to 1,000kg etc)
Negative: vehicle weighing facility required to confirm load either on site or agreement / charging mechanism with a 3rd party
Commonly used for: paper, chemical (not tanker qty’s), machinery
Weight
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Pay for whole vehicle – Special rates and can be seasonal
Positive: if carefully planned you can take full advantage as the whole vehicle is yours to fill up
Negative: if delivering at the last minute you may pay for a FTL with only a Groupage / part load
Commonly used for: all (scaffolding, production companies)
FTL
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Pay by distance travelled
Positive: usually this is small vehicles Van, 3.5t or 7.5t vehicle and smaller operator so can negotiate a good rate
Negative: can pay more for out of the way deliveries against a courier service (depending upon size of load)
Commonly used for: Stationary, scaffolding
Price per KM
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To learn how to effectively apply a “best fit” rate matrix which can help reduce your logistics costs call us on 0333 9000 350 or visit our website:
If you would like more information on haulage rates or keeping your costs to a minimum call us on 0333
9000 350 or visit our website: