FFEX to charge shippers
to offset its higher costs
Jun 25, 2008 9:47 AM
Frozen Food Express Industries Inc. and FFE Transportation Services, offering nationwide transportation in the temperature-controlled truckload and LTL, dry truckload, and brokerage/logistics markets, announced that it will implement a charge to shippers for the rising cost of refrigeration necessary in transportation of temperature-controlled products. It expects the charge will be fully implemented by the middle of this year’s third quarter.
"Our customers count on us to keep their products pristine in a temperature-controlled environment. Our ability to do that depends on the use of diesel-powered refrigeration units," said John Hickerson, senior vice president and chief marketing officer. "The cost to operate those units is tied directly to the ever increasing price of fuel. So far this year, the per-gallon price of diesel is up more than 40%. Until now, we have held the line and not passed on this increasing cost, as we are sensitive to our customers’ needs. That has been quite a struggle, and we have reached the point where it is not financially feasible to continue to bear the brunt of this brutal fuel environment without some relief. We have reached out to our customers for input on this tough situation, and our shipping partners have been mostly understanding about the necessity for FFEX to offset the climbing cost for refrigerating their products."
"Previously, we have reported a variety of initiatives to hold the expense of fuel costs in check," said Russell Stubbs, senior vice president and chief operating officer. "We have turned our trucks’ speeds down; we are spending more on fuel-efficient tractors and better insulated trailers. We have taken many steps to reduce tractor idling time. All of those have been effective, and we will continue to do everything possible to hold shipping costs at affordable levels while supplying the quality service for which FFEX is known. This is all about customer service and we must offset some of the increasing cost related to providing the service our customers expect and deserve. Our goals have not changed, and we will still be standing after any shake out that many expect in the economy. Our efforts to cut costs and enhance revenue remain intact and on-target.
"This will be an enterprisewide program adopted by the fleets at all FFEX brands," said Stubbs.
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