 |
|
|
| Q. What has prompted the development of the Movers, Inc. website at this particular time? |
|
| A. The large swings in fuel prices and the Sept. 11 event has caused air carriers to add, modify, and eliminate fuel surcharges and to institute security surcharges in some cases. These changes have occurred at random times and, in some cases, with very little warning. The website will be the best way we know to provide you with up to the minute rate information and the means to warn you of upcoming changes. |
|
|
|
|
| Q. Is this the primary purpose of the website? |
|
| A. The primary purpose, yes. However, this will also be an excellent way of advising you of changes and practices that may affect your business. |
|
|
|
|
| Q. How is the net weight rate sheet constructed? |
|
| A. We take all the various costs that apply to a certain shipment, divide that by a certain net weight and we achieve a cost per net pound for a certain weight group. These costs include air carrier freight charges, value (or insurance) charge, tax, Movers, Inc. handling charge, any applicable sur charges, and the charge for tare. For calculation purposes, we use 15% of the net product weight to establish the tare value. |
|
|
|
|
| Q. Is the net weight rate sheet exact? |
|
| A. No. Because of fluctuations in the actual tare weight and fluctuations in packaging specifications, the actual cost per net pound will vary slightly. However, we have tried to round up our calculations as a hedge against these variances to that any fluctuations will be in your favor. Our goal is to have your actual cost come in slightly under those rates shown on the rate sheet. This won't happen every time but, most of the time. |
|
|
|
|
| Q. What do you mean by fluctuations in tare weight , fluctuations in packaging specifications, and how does this affect my cost per net pound? |
|
A. Certain processors use different types of wetlock cartons for shipping product. In some cases and for whatever reason, an 80 pound size wetlock may be used to ship 50 pounds of net product.
Since an 80 pound wetlock will weigh more than the 50 pound size wetlock, the tare weight is increased resulting in a slight increase in your cost per net pound.
The same problem occurs when a processor or, a packaging specification may require that 4 gel packs be used in a 50 pound net weight wetlock. Generally, we see 2 gel packs being used in this situation and that is the specification used in our net weight rate calculations. More gel packs equals higher tare weight equals higher cost per net pound.
We should also mention that the net weight rate calculations are based on the use of 100 pound or 50 pound wetlocks. In recent years, we have occasionally seen the use of 25 pound size wetlocks or even 20 pound size wetlocks. These cartons will have an even higher tare weight as the ratio of net product weight to cardboard used is considerably higher than when using 100 pound or 50 pound size wetlocks. The use of smaller wetlocks can mean an increase in shipping cost of as much as .03 cents per pound. |
|
|
|
|
| Q. Are there any costs that aren't included in the net weight rate calculations. |
|
A. Yes, there is one cost not included in the rate calculations. That is the cost for refrigeration.
We have wrestled for some time to find a way to incorporate this charge into the net weight rate sheet however, we keep bumping into the issue of not wanting to charge a refrigeration charge to those shippers who don't use it.
The fairest way still seems to be to consider it a user charge and charge it only when absolutely necessary.
When applied, the cost for refrigeration will equal approximately 1 3/4 cents per net pound.
|
|
|
|
|
| Q. Do you always route shipments on the air carrier with the lowest rate? |
|
| A. Not necessarily. Because of periodic changes in air carrier schedules and our experience with certain carriers to certain destinations, the air carrier with the lowest rate may not always meet your service requirement. If there is a large variance in rate for the air carrier you have requested vs. the air carrier that will meet your service standard, we will discuss the issue with you. |
|
|
