The Shipper Solution, a fuel-price protection program offered by Simons Petroleum, is now being used by Swift Transportation Co. “The stability provided by The Shipper … resonates with many of our customers, especially in today’s economy where thin margins do not allow them to absorb volatility in fuel costs,” said Brad Stewart, director of finance at Swift Transportation.
“This solution provides a strategic means of proactively managing fuel costs and enhancing our business partner role with our customers,” he added. “For our customers, it provides the ability to control budgets, remove fuel price volatility from their transportation costs, and better predict margins in a highly competitive business environment.”
The Shipper Solution offers carriers two fuel surcharge strategies – a fixed rate fuel surcharge or a capped rate fuel surcharge. Under the fixed rate plan, a company agrees to a fixed price on a set volume of fuel for a specified period. The capped rate plan set a ceiling, but should prices drop, so too does the cost to the carrier.
Swift operates approximately 16,700 tractors and 49,300 trailers.