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Fuel trumps base rates in small parcel negotiations

By David Hannon -- Purchasing, 8/14/2008

As fuel costs continue to skyrocket, several shippers say small parcel base rates are less of an issue than managing fuel surcharges.

"With fuel surcharges at 28%, carriers simply can't lower their rates enough to offset that," says Shannon Jean of TechRestore. "So even though we're getting a discount off the published rates based on our volumes, we have to add that 28% back in for express shipments."

TechRestore is trying to develop more effective ground routes to offer its customers because ground shipments have a lower fuel surcharge than express.

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