Fuel surcharge discount rules in carrier agreements

The purpose of this article is to guide you through the function and components of Fuel Surcharge Discount rules in carrier agreements. This information is intended for any system user with a PDF agreement that needs to be loaded into the Agreement Management System.

Organization of rules

Rules are ordered by class type in the following order:

  1. Dim Divisor
  2. Service Discount
  3. Grace Period Discount
  4. Earned Discount
  5. Minimum Net Charges
  6. Surcharge Discount
  7. Fuel Discount

It’s important to note that rules are executed from top to bottom. In other words, rules at the bottom are executed after the rules above and can overwrite the rules where overlap exists.

Fuel surcharge discount rules

The Fuel Surcharge Discount rule calculates the discounts on Fuel Surcharges. Fuel surcharge discounts are common in large volume shipping agreements.

Effective Start Date

Pertinent for expiration terms on Fuel Surcharge Discounts.

Default: Null

Format: mm/dd/yyyy

Common mistake: Effective Start Date is entered on a date that is after the analysis period date range within CAO View. Ensure that the Effective Start Date does not affect the Fuel Surcharge Discount being applied to the date range of analysis.

Pro tip: Create one Fuel Surcharge Discount rule for each term within the agreement. The Effective Start Date and Effective Stop date fields build each rule for the targeted date range.

Effective Stop Date

Relevant for expiration terms on Fuel Surcharge Discounts.

Default: Null

Format: mm/dd/yyyy

Common mistake: Effective Start Date is entered on a date that is after the analysis period date range within CAO View. Ensure that the Effective Start Date does not affect the service discount being applied to the date range of analysis.

Pro tip: Create one Fuel Surcharge Discount rule for each term within the agreement. The Effective Start Date and Effective Stop date fields build each rule for the targeted date range.

Service

Select the Service targeted by the Fuel Surcharge Discount rule.

Note: Services and Service Type Groupings are carrier specific.

Directions

Overview: Domestic service types are controlled as a single rule on Fuel Surcharge Discounts. Fuel Surcharge Discounts on international shipments, in contrast, are managed as separate rules by direction: Export and Import.

Default: All enabled by default

Options:

  • Import
  • Export
  • Domestic

Discounts

Fuel Surcharge Discount of percentage discount off the list rate of the surcharge or accessorial charge.

Updated on April 4, 2019

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