What the best way to modify haulage rates with fuel costs on the rise, how much increase in fuel can the haulier just soak up before the rates have to change? How often would it be practical to change rates given bulk distribution contracts are based on delivered product? How should the change in rate be related to the change in fuel.
It's a tough one and needs a clear and transparent process if haulage companies are going to accept the changing rates. Currently thinking that by separating the fuel cost of each ton delivered for every journey is going to be the way to go. This way the net rate per tonne can be fixed and the overall rate get adjusted when derv prices increase or decrease past a pre set trigger point.