FedEx Freight Accelerates LTL Shipping

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1 In This Issue... Pg. 1 - FedEx Accelerates LTL Shipping Fuel Update Pg. 2 - Claims Series 4 of 4 Best Practices in Freight Claim Management Pg. 3 - Carrier Performance Metrics Pg. 4 - Saia takes technology to a new level in the LTL environment Pg. 5 - Carrier Profile Dayton Freight FedEx Freight Accelerates LTL Shipping A market study completed on behalf of FedEx, which considered both expedited and non-expedited LTL services with published transit standards and nationwide coverage, concluded FedEx Freight Priority has the fastest published transit times of any nationwide LTL service. The recently improved standards for FedEx Freight Priority further accelerated shipping options for both U.S. domestic shipments and select shipments from the U.S. to Canada. FedEx Freight Priority service continues to offer all-points coverage nationwide for LTL shipments, backed by a no-fee money back guarantee on eligible shipments. Customers have responded positively to our unique service offerings, and value the choice of two reliable services across all lengths of haul. - Bill Logue These enhancements are part of FedEx Freight s ongoing commitment to transform LTL Shipping with faster, more reliable service offerings that better fit the needs of businesses today, said Bill Logue, FedEx Freight President and CEO. Our improved transit standards will benefit LTL shippers who needs a speed advantage to reach their markets faster or reduce inventory carrying costs, all with the service and reliability they have come to expect from FedEx Freight. Over the past two year, FedEx Freight has delivered innovative solutions to the LTL market, including the introduction of FedEx Freight Priority and FedEx Freight Economy to meet the unique needs of businesses for speed and value. While both services offer reliability and nationwide coverage, Fed Ex Priority is the choice for businesses when speed is critical while FedEx Freight Economy is the choice when customers can trade time for savings. 1

2 Diesel Fuel Held Steady for Most of 2012 Diesel fuel prices started the New Year slightly lower than the prior week. The national diesel average has declined 11 of the past 12 weeks. On January 14th the national average was $3.894/gallon which was $.04/gallon higher than the same time last year. Fuel during 2012 was on a slight roller coaster ride. Fuel spiked at $4.148 on April 9th and then started a small decline to as low as $3.648 on July 2nd. It then began to climb again peaking at $4.135 on September 17th at which time it has slowly declined to it low point of $3.894/gallon on January 14, Claims Management Series Best Practices in Freight Claim Management Part 4 in a Series Branded and/or warranted product that has been damaged in transit then sold on a secondary market can pose a serious dilemma to shippers. We have often encountered confusion regarding what shippers can and cannot do when filing freight claims. The specifics of each claim vary greatly and what applies to one claim may not apply to all given the differences in applicable tariffs, contracts and/or the regulations governing the product involved (if any). It is important to distinguish between shipments that fall under a carrier tariff and those that fall under terms of a contractual agreement where specific circumstances are clearly outlined. Many shippers wonder if it is acceptable to include a no salvage clause in their carrier contracts and if a claim can still be filed if the claimant refuses to allow the carrier to salvage the product (or provide a salvage value). The short answer is to both questions is YES! Shippers have every right to protect themselves by adding appropriate clauses to their transportation agreements and these types of clauses are quite common when dealing with branded product, products under warranty, those governed by FDA regulations and/or any product that could cause increased risk to the shipper and/or manufacturer if substandard product were to be released to the market. Allowing carriers to salvage items when it is unknown if product is contaminated or defective can expose the shipper to unnecessary risk. In cases such as those described above, carriers should be prohibited from salvaging product and the best way to insure this is properly achieved is to clearly outline in contractual agreements exactly how damaged product and the resulting claims shall be handled, including salvage (or lack thereof) and the return of product. Product return is the only sure way of verifying the product is not resold. Including a statement on the bill of lading stating: CARRIER: All refused/damaged product must be returned to shipper is also advisable. In a case where a shipper tenders product to the consignee s carrier on an FOB origin basis, it is prudent to outline return and salvage requirements in writing, and share it with the carriers involved and their claims departments. While it is important to first understand if the claimant is operating under tariff or contract and the rules that apply, generally speaking, refusing to allow salvage does not prohibit one from filing a freight claim. The carrier may require that the contract language include a clause where the scrap value of the returned product is to deducted from the value of the freight claim, but shippers should keep in mind when writing their agreements that the claimant has the right to be made whole. 2

3 Claims Management Series Cont d... If the damaged product must be re-worked and re-packaged, then the parts, packaging and labor costs can be added to the claim value. If the shipment is completely destroyed and there is no scrap value in the end product, then there simply is no salvage value to be had with or without a salvage clause. If there is a cost associated with destroying and disposing of the waste associated with damaged product, or if the claimant is required by law to destroy the product in a certain manner that requires use of a third party (i.e. food stuff or other products where the process is regulated) and the claimant incurs additional cost, then the claimant is entitled to recoup those costs. In many cases, freight cost can also be added to the cargo claim, either in full or pro-rated for partially damaged shipments, as part of the claimants full actual loss. In our experience, this particular issue has generated many lively discussions. Claimants should take care to clearly outline when freight will be reimbursed in their transportation contracts to avoid unnecessary delays in resolving their claims. Many claimants unwittingly short change themselves by not having a qualified party to call on to answer questions relating to high value freight claims or complex issues. That situation can be easily remedied by having a post audit performed on closed and declined claims, which can be done up to two years after closure, or by outsourcing the entire claim process. - Lori Youngberg, President, FreightClaimAudit.com - Deirdre James, Director of Claims & Loss Prevention Carrier Service Metrics 4 th Quarter Averages % On Time ABF Conway Dayton Fgt. Extes Express NEMF Old Dominion Pitt Ohio SAIA Southeastern UPS Freight Ward Trucking YRC Freight Carrier 3

4 2012 Continues to Be Another Exciting Year Carrier for AAA Profile Cooper - Saia Transportation AAA Cooper Transportation, headquartered in Dothan, Alabama, is an approved Simplified Logistics carrier and enjoyed another exciting year for On April 30, 2012, AAA Cooper expanded its footprint by opening the Indianapolis Service Center located in Indianapolis, Indiana. The Service Center employs over 32 employees who have over 200 years of driving experience, over 65 years of sales experience and over 30 years of operations experience. During 2012, Inbound Logistics magazine again ranked AAA Cooper in their Top 100 Motor Carriers. Along with this prestigious recognition, AAA Cooper received the Carrier of the Year awards from both Schneider Logistics and from John Deere. Also, Mastio & Company recognized AAA Cooper as one of the top Southern carriers. In addition, AAA Cooper was awarded the Silver Star Award by Volvo Logistics for exceptional carrier performance. Saia takes technology to a new level in the LTL environment The Saia LTL Freight App has been launched via the Apple App Store this past Saturday (January 19, 2013) and is now available for download. Designed to help our customers keep pace in today s busy work environment, the free app offers users a variety of tracking, scheduling and viewing options 24/7 from anywhere. You can now: Track shipments via multiple options by PRO, BOL, shipper, or purchase order number. Any option provides users the same detailed movement history. View imaged documents. If needed a proof of delivery or a BOL, Log into the secure section of the app, you can then can view these documents directly from your mobile device. Generate a quote for a shipment, including our GSS service options. Schedule a pickup from anywhere. Contact a variety of Saia LTL Freight departments simply by selecting any from the provided contact list or by calling our customer service number. The app is compatible with Apple iphones, ipod Touch, and the ipad. The app is optimized for iphone 5 and requires ios 4.3 or later. Aside from the App Store, customers can download it directly from the Saia LTL Freight website to any of the above mentioned Apple devices Our 34-state network of 147 terminals allows us to provide unparalleled multi-regional service to our customers. We welcome the chance to serve your LTL freight needs. Thank you for your business. 4

5 Carrier Profile - Dayton Freight Delivering value today Driving the standard for tomorrow Since 1981, Dayton Freight has been a recognized leader in less-than-truckload transportation services throughout the Midwest. Privately owned and union-free, we offer shippers 1 or 2 day on-time, intact delivery to thousands of cities in 11 states. With our Strategic Alliance Network, Dayton Freight serves all of the United States, Mexico, Canada, Puerto Rico and Guam. Whether transparent or visible, technology impacts every step of our pickup and delivery operation. Through in-house engineering, design and programming, Dayton Freight provides industry-leading solutions to managing freight and data. KS MN Minneapolis/ Wisconsin Rapids/Wausau St. Paul Kalkaska Lakeville Tomah Oshkosh MI Milwaukee Grand Rapids Flint Detroit Rockford Jackson Cedar Rapids Des Plaines Des Moines Chicago South Bend Toledo Mentor Quad Cities Lowell IA Ft. Wayne ClevelandAkron Peoria Mansfield Dayton Danville Columbus Indianapolis Cincinnati Columbia IL OH IN Gallipolis Kansas City St. Louis Salem Walton Evansville Louisville MO Springfield WI Sikeston KY London Bowling Green Pittsburgh PA Don Cameron, Corporate Account Manager doncameron@daytonfreight.com 98.75% On-Time 99.8% Claims Free! 5