Program Lets Prime Inc Pass 100 Percent Of Collected Fuel Surcharges on to Contractors
Dec 1, 2000 12:00 PM, MODERN BULK TRANSPORTER STAFF
Prime Inc, a refrigerated, flatbed, and liquid bulk truckload carrier based in Springfield MO, is contributing to the success of its contractors with a fuel surcharge program that protects them from fluctuations in fuel prices. The company passes 100% of all fuel surcharges it collects from its customers on to its contractors. If the amount Prime collects from its customers falls short of protecting its contractors from fluctuating prices, the company makes up the difference. Since August 1999, Prime has passed $18.25 million in fuel surcharges on to its contractors, with the company paying $3.5 million of that amount.
Long before fuel prices became critical to the success of operators, Prime began indexing the cost of fuel based on actual cost to contractors, calculating the actual number of gallons they used and the cost per gallon from fuel stop to fuel stop.
For contractors driving fuel-efficiently, or averaging six miles per gallon, Prime's fuel surcharge program limits the impact of fuel prices to $1.08 per gallon. The company's current fuel surcharge is $.10 per mile, which equates to $.60 per gallon for contractors averaging six miles per gallon. Prime also has fuel discounts in place with fuel vendors that range from $.03 per gallon to $.26 per gallon. Contractors pay no transaction fees at Prime's network fuel locations, receive all company-negotiated discounts, and are entitled to free services at select fuel locations.
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