Fuel recovery: the smart way to move forward.

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1 Fuel recovery: the smart way to move forward.

2 Fuel Surcharge vs. Fuel Recovery. Paying fuel surcharges is awesome, said no one ever. When you work with reakthrough Fuel, you stop reacting to fuel prices and start managing them. Which gives you greater control and the most relevant, up-to-date pricing information all while saving you some serious green. Variables Fuel Surcharge Fuel Recovery Time Average weekly price sample. Price based on each movement. Geography & Tax Ignores regional price Includes regional price and tax differences. and tax differences. Pricing Full retail pricing. Up-to-date market cost of transportation fuels. Approach React to fuel prices. Actively manage fuel prices.

3 Understanding Fuel Recovery. Your freight movement drives fuel costs. Every movement, every day. Fuel costs are always up-to-date. Tax calculation aligns with how carriers pay. Fuel price information is pulled from over 7,500 truck stop locations across North America. A Movement Details Origin City of Industry, CA Destination Houston, TX Mode Truckload Opportunity on single lane: $47.87 * *ased on market pricing. Miles 1,536 Gallons 256 DOE-ased FSC $ Fuel Recovery $647.94

4 Truckload Fuel Recovery Example. A Freight movement includes: City of Industry, CA to Houston, TX 1,536 miles Shipper rules applied: ase Rate: $1.20/gallon Miles: 1,536 MPG: 6.0 Eligible Gallons: 256 Pricing reakthrough determines the market price* for fuel along the lane. Average market cost on lane: $3.731/gallon * Market pricing is defined in example as OPIS wholesale price + transportation + federal & state tax + environmental fees + 2 pumping fee. 4 5 Fuel cost for the freight movement is based on actual discounted price multiplied by the number of gallons: 256 X $3.731 = $ With $1.20 base rate, shipper reimburses carrier the full market rate for fuel: Fuel recovery to carrier would be: Total Market Cost: $ $3.731/gal Less ase in Freight: $ $1.200/gal Fuel Recovery: $ $2.531/gal

5 Intermodal Rail Fuel Recovery Example. 1 The process begins with a freight movement: Origin to Destination 3 legs Dray/Rail/Dray Origin to Rail Hub. 2 Shipper rules applied: Dray Rail ase Rate: $1.15/gal $1.15/gal Mileage Application: Rand Practical PC Miler V16 Practical Intermodal MPG: A 3 With $1.15 base rate, shipper reimburses the A intermodal provider the market rate for fuel: Fuel recovery to IM provider based on combined movements added together then removing the base: Rail Hub to Rail Hub. Total Market Cost: Less ase in Freight: Dray 1 + Dray 2 + Rail Less $1.15/gal across all three Fuel Recovery: Dray 1 + Dray 2 + Rail = Total C D 4 Fuel cost for the freight Amovement is based on all legs of the movement using actual discounted price times the number of gallons for each leg. Rail Hub to Destination. 5 Pricing reakthrough determines the market price for fuel along the lane based on discounted prices. Dray average market* cost basis: Market + $.02 Rail average market* cost basis: Market + $.00 C D * Market pricing is defined as OPIS wholesale price + transportation + applicable federal & state tax + environmental fees + pumping fee.

6 Defining Fuel Recovery. Fuel program basics: Fuel recovery is one standardized program for all carriers. It s always fair. The cost of fuel is calculated on each movement on every day based on actual pick up date to determine the real cost of fuel. It s always actuals. Standard fuel performance reflective of shipper s freight characteristics i.e. $1.15 base fuel price and 6.0 mpg. Fuel pricing is based on wholesale cost + 2 (including rack wholesale, taxes, freight and environmental fees). Shipper will ensure you have ability to acquire discounted fuel. reakthrough Fuel will facilitate access to fuel if desired. Payments for fuel will be made automatically and directly through shipper s normal payment process. It s time fuel moved you forward. Contact reakthrough Fuel at info@breakthroughfuel.com

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