Throughout Europe, shippers and carriers are accustomed to all in transportation rates, including
both freight and fuel. This rate is typically held for the entire duration of a contract. Fuel
prices and taxes fluctuate regularly, though, leading carriers to build unnecessary risk into
contracts. A more transparent, data driven approach is necessary for shippers to effectively
manage their transportation fuel spend.
Breakthrough enables shippers to separate fuel costs from freight costs. This separation of line items allows shippers to accurately reimburse carriers for fuel based on date, geography, and regulatory environment. With visibility into real fuel price behavior on each freight movement, fuel related risk premiums can be removed from freight rates, resulting in fair and equitable reimbursements between shippers and carriers.
Separating fuel from all in rates held for an entire contract year and moving to daily, lane level fuel pricing enables fair and accurate reimbursements between shippers and their carriers. The Fuel Recovery methodology accounts for the time, geography, and taxes associated with each specific freight movement.
With a fair and accurate fuel reimbursement model in place, there is no need for carriers to build risk into their rates. With Fuel Recovery, shippers avoid undue costs and carriers are confident they are being made whole on their fuel expenses.
With line of sight into fuel consumption and spend according to each movement, shippers can use the data uncovered through their Fuel Recovery program to make better decisions to drive improvements in their network. From mode conversions to alternative energies, opportunities will be surfaced to work toward sustainability goals and cost reduction initiatives
Interested in learning more about how implementing a Fuel Recovery program could improve your transportation strategy? Fill out the form and we’ll reach out to schedule a discussion.