{"id":2537,"date":"2011-06-17T02:42:49","date_gmt":"2011-06-17T02:42:49","guid":{"rendered":"http:\/\/findfreightloads.com\/blog\/?p=2537"},"modified":"2011-06-29T03:39:08","modified_gmt":"2011-06-29T03:39:08","slug":"truckers-unhappy-with-pricing-model","status":"publish","type":"post","link":"https:\/\/findfreightloads.com\/blog\/truckers-unhappy-with-pricing-model\/","title":{"rendered":"Truckers Unhappy With Pricing Model"},"content":{"rendered":"

Less-than-truckload carriers <\/a>are broadly dissatisfied with LTL pricing models, but not at all optimistic about changing to a new method for matching prices to freight.<\/p>\n

That\u2019s one of the findings of an LTL<\/a> pricing survey conducted by Auburn University for SMC3 unveiled at the SMC3 Connections Conference in Coeur d\u2019Alene, Idaho.<\/p>\n

The survey conducted over the past year found 52 percent of LTL carriers were dissatisfied with the decades-old and much-maligned tariff and freight classification pricing model.<\/p>\n

That compares with 25 percent of shippers<\/a> and 38 percent of logistics providers who are unhappy with the densely complicated system, said Professor Joe Hanna, chair of Auburn\u2019s supply chain management department.<\/p>\n

The study, sponsored by SMC3, was launched last year after the collapse of LTL rates during the recession. It is the first LTL pricing study to include 3PLS, or freight brokers<\/a>. <\/p>\n

<\/p>\n

The trucker<\/a> dissatisfaction reflects decades of discounting off base rates that divorced pricing from the actual costs of transporting LTL freight, Hanna said. Carriers, 3PLs and shippers questioned in the survey\u2019s first phase said discounts \u201care getting ridiculous, and as a result the base rates are ridiculous,\u201d said Hanna.<\/p>\n

Far fewer shippers<\/a> were dissatisfied with the pricing model, but most said they had \u201cadapted\u201d to what they saw as an imperfect system.
\n\u201cIs the marketplace ready for change? There\u2019s no consensus,\u201d said Hanna.<\/p>\n

LTL truckers<\/a> were the least optimistic that the shipping industry is ready to change.
\nMore than 60 percent of the truckers surveyed in the second phase of the survey said the market isn\u2019t ready for re-indexing base rates or a density-based pricing.
\nShippers were more positive, with 60 percent saying they were ready for density-based pricing, and almost 60 percent saying they were ready for re-indexing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Less-than-truckload carriers are broadly dissatisfied with LTL pricing models, but not at all optimistic about changing to a new method for matching prices to freight. That\u2019s one of the findings of an LTL pricing survey conducted by Auburn University for SMC3 unveiled at the SMC3 Connections Conference in Coeur d\u2019Alene, Idaho. The survey conducted over […]<\/p>\n","protected":false},"author":1,"featured_media":2538,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,3],"tags":[],"_links":{"self":[{"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/posts\/2537"}],"collection":[{"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/comments?post=2537"}],"version-history":[{"count":13,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/posts\/2537\/revisions"}],"predecessor-version":[{"id":2664,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/posts\/2537\/revisions\/2664"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/media\/2538"}],"wp:attachment":[{"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/media?parent=2537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/categories?post=2537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/tags?post=2537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}