CT TranSaverSM saves you more
TranSaver – how it came to be. When motor carriers began offering discounts some years ago, Commercial Traffic became concerned over both the speed at which discounts escalated and with the disparity between the discounts offered to very large shippers and those given our small and medium-sized customers. Conditions were no better for the motor carriers, who had to run frantically to keep pace with their competition to capture (or even hold on to) the freight to fill their trailers. Commercial Traffic decided to try to stabilize the situation.
CT TranSaver – what it is. We designed our program to help TranSaver customers gain motor carrier pricing on a par with that afforded larger shippers. We later added air carriers and freight forwarders who provide TranSaver shippers with discounted package air freight rates on a complete shipment (rather than a per-package) basis that remain effective for a longer period of time than is commonly available. TranSaver customers give negotiating authority to Commercial Traffic who, through TranSaver, negotiates carrier pricing on behalf of all customers who choose to join. TranSaver figuratively pools all the participating shippers freight, both outbound and inbound, and invites motor and air carriers to submit pricing to apply equally to the entire TranSaver group. TranSaver is similar to the group buying programs in which small grocery stores pool their orders into one large enough to gain favorable pricing from food producers, or like wholesale clubs (Sam’s) or COSE for health care.
At the same time, we recognize that the best pricing in the world does shippers no good without carriers to haul the freight. So despite the enormous pool of freight that TranSaver represents, we aren’t trying to drive carriers out of business. Consequently, we insist that a carrier who wishes to join the program restrict its discount bid to a level that’s attractive to TranSaver shippers and will assure the carrier of a profit. We’ve had to turn down carriers who bid discounts too low to attract TranSaver business and a few whose bids were so high that we recognized them as desperate but unprofitable attempts to capture new traffic. TranSaver is structured to assure shippers and carriers of a profit.
CT TranSaver – how it works. Commercial Traffic invites shippers who think they might benefit from the CT TranSaver program to send us a selection of their freight bills for a free savings comparison. (If they’re already a Commercial Traffic customer, they may instruct us to use freight bills we have in-house to audit and pay for them.) We then compare the charges they’ve paid with the charges they would have paid had they been TranSaver members, and prepare a comparison report. If the rate study shows a prospective participant would benefit from TranSaver participation, we invite them to consider the program further. In most cases, TranSaver offers additional freight savings, but sometimes it doesn’t. We report the results of the study either way.
When a shipper joins TranSaver, a responsible official signs a TranSaver Authorization form, giving Commercial Traffic formal authority to negotiate pricing with TranSaver carriers on the customer’s behalf. TranSaver participants must provide us with a list of shipping locations, including street addresses, cities, zip codes, and any other names under which they ship. We also ask them to provide the name of the individual at each location who will be responsible for routing their freight to TranSaver carriers and to whom both carriers and Commercial Traffic can address questions. We expect the shipper to familiarize those persons with the TranSaver program to make sure that any replacement for the contact is informed as well. It is extremely important that we be notified of any changes to this list because a new or uninformed contact may not understand how to use the program. Many carriers list specific street addresses, cities and zip codes in their pricing/discount databases. Failure to notify them of any of those changes can lead to confusion and mis-rating, or non-application of discounts and other problems that can be difficult to correct.
Once we have the information, we provide it to the TranSaver carriers so they can set up the new participant in their computers. We generally allow carriers 30 days for new customer set-up, even though the process often takes far less. Carriers are expected to arrange to visit the local contacts to provide them with points lists, information about the carriers’ geographical coverage, and acquaint shippers with their operations.
Commercial Traffic then compiles a point-specific Routing Guide for each of the shipper’s locations, which lists all the states covered by the TranSaver carriers that serve the shipping point. Although the TranSaver Routing Guide tells shipping personnel which carriers serve which state, it must be used in conjunction with the carriers’ points lists to be sure the carrier serves the specific point to which a shipment is destined. Because the TranSaver routing Guide shows no finer detail than the state level, it can be used for both outbound and inbound freight. We encourage shippers to use the Routing Guide in their Purchasing Departments, again with the caveat that it must be used with a carrier’s points list to assure maximum freight savings from the TranSaver program.
We expect that CT TranSaver shippers will route about 80% of their LTL and package air freight via TranSaver carriers. Sure, we’d rather see that figure at 100% so shippers can reap the greatest possible dollar savings, but we’re experienced enough to know that occasionally shippers might need to use other carriers. Sometimes their customer specifies the routing, or maybe no TranSaver carrier serves the destination or provides a special service required. Sometimes the shipper might just want to try a new carrier (and if it does a good job, recommend it for inclusion in TranSaver). Although TranSaver is flexible, shippers must understand that the program’s strength lies with the numbers. The more freight we give the TranSaver carriers, the better motivated they’ll be to continue providing good service at a good price. And the more freight shipped under the TranSaver contract, the greater the benefits to all parties.
We also expect that neither shipper nor carrier will take advantage of the other. That is, that shippers will take care to prepare bills of lading correctly (and note on it that the shipment is subject to TranSaver pricing), adequately package, correctly describe and weigh the freight and properly mark hazardous materials. We expect shippers to be prepared when the carriers’ equipment arrives and not keep drivers waiting. We expect shippers to be prepared when the carriers’ equipment arrives and not keep drivers waiting. We expect carriers to present shippers with clean, dry equipment, make pickups on time and deliveries when promised and provide courteous drivers who won’t tie up shipping docks by socializing. In short, TranSaver envisions cooperation between the parties who benefit from it.
Commercial Traffic’s role in TranSaver is to be the administrator – the glue, if you will, that holds the program together; the liaison between shipper and carrier and when necessary, the pourer of oil on troubled waters, and arbitrator of disputes. We provide the shippers with routing guides and carrier pricing information with which to choose a carrier. And we offer both shippers and carriers reports to help track the efficacy of their participation. We’ll step in and use our contacts and resources to arrive at an equitable settlement if shippers and carriers are unable to settle issues locally.
Using your Routing Guide: Commercial Traffic produces a customized CT TranSaver Routing Guide for each customer’s shipping/receiving location. We list only those TranSaver carriers who serve the shippers’ location. We list the lower 48 states vertically down the left margin and the TranSaver carriers who serve those states are listed horizontally beside each one. But just because a carrier appears for a given state, it doesn’t mean it can serve your shipment’s specific destination. To be certain, you must consult the carrier’s points list.
The first section of the Routing Guide lists interstate service, and the second lists intrastate service. Purchasing personnel can use the Routing Guide in reverse by first locating the carriers who serve the origin state, then consulting their points lists to determine whether they can also serve the specific origin city of an inbound shipment. The CT TranSaver Routing Guide is designed to be simple and easy to use. But you must follow the procedures to avoid delays and surprises.
Air shipments: A third section of the CT TranSaver Routing Guide lists participating air carriers/forwarders. These carriers offer low and stable prices for a run-of-the-mill package and small shipment service, but air shipments require special care. Hazmat by air: Because a great volume of air freight moves in the cargo compartments of a passenger aircraft, air shippers must be extremely careful with any product that might be classified as a hazardous material. Since the recent airline disasters, the government has beefed up security measures that include both routine electronic scanning and more frequent physical searches. Shippers are subject to heavy fines if they inadvertently violate the FAA’s new cargo security rules, disastrous fines and perhaps criminal prosecution if they do it intentionally. If such freight causes the crash of a passenger airplane, liability and awards in civil lawsuits can be devastating. Our point is that although TranSaver prices for shipping unexceptional cargo are low, shippers should always check with the TranSaver carrier before shipping any cargo that might trigger extra charges or violate security regulations.
We at Commercial Traffic want to emphasize our concern that rules and regulations governing hazardous materials shipping have become so complex and multi-layered in the past several years that shippers have difficulty keeping abreast of them. That puts shippers at risk of unknowing violations that can lead to serious consequences. We urge all our customers to look carefully at all their transportation activities, both outbound and inbound, to avoid running afoul of hazardous materials regulations. We offer hazardous materials audits, training and help in establishing compliance programs. The fees for this are reasonable compared to the potential cost of violations. Call us, we’re the experts and can help you avoid problems.
About the Discount Application chart: Since deregulation, it’s no longer illegal to disclose discounts to competing carriers. Nevertheless, we regard that practice unethical as we do “springboarding”, which means using the discounts negotiated for the TranSaver group to attempt to induce a TranSaver carrier to increase discounts for one of the shippers. Most TranSaver carriers have placed flags in their computer systems to block or raise an alarm when one of their representatives tries to enter pricing that conflicts with TranSaver pricing, and we’re soon notified. Whenever we have evidence that this is happening, we usually suggest such shippers withdraw from TranSaver and handle their own negotiations.
The first column on the Discount Application chart names the carriers. The next three deal with line-haul discounts the carrier offers between direct points, that is, those movements in which the carrier serves both origin and destination. Often discounts are the same for prepaid and collect outbound shipments as well as collect inbound. The next two columns apply on minimum charge shipments between direct points. Sometimes the carrier offers equal discounts for line-haul and minimum charge shipments, but nearly all carriers have some sort of “floor” revenue. This is in effect, a minimum charge shipments, but nearly all carriers have some sort of “floor” revenue. This is in effect, a minimum charge after discount – a line in the sand beyond which the carrier will not go. For example, a $200 charge subject to a 60% discount would be $80. But if the carrier has a “floor” of $90 or higher, that’s the charge he would apply, and not $80. The next two columns show discounts the carrier offers on interline shipments, those in which another carrier participates. A “00” in either of these columns indicates the carrier will give no discount at all of interline movements or might be willing to discount prepaid outbound, but not collect inbound moves.
The remaining columns tell how the carrier will apply the discounts offered and whether he is willing to waive certain charges. A “Y” in the “Total Rev” column indicates the discount applies to all the line-haul charges (except accessorial), and not just to the portion of them that the carrier receives. A “Y” in the “20M” column means he will apply the discount to the 20,000 lb. line of rates (generally defined as truckload). The next column indicates whether the carrier will alternate the discounted 10,000 lb. rate with truckload rates to give TranSaver shippers the lowest possible charge. Similarly, a “Y” or “N” in the following columns means the carrier will or will not apply the discounts to prepaid outbound C.O.D. shipments, to third-party billing (where someone other then the shipper or receiver pays freight charges), forgive late payment of freight charges, apply a “cubic capacity” rule, (which may or may not void his discount), waive Single Shipment or Notify charges. Reference marks on the Discount Application Chart alert shippers to any conditions that carriers may attach to the application of their discounts.
CT TranSaver – how it saves you. TranSaver motor carriers’ interstate rates and many of their intrastate rates are based on Yellow Freight system’s tariff, YFSY 500M, and frozen by contract at the 2-1-94 level. Motor carrier rates have increased each year since 1994 by 4.5% to 6%, which means that disregarding all discounts, your rates are between 14.1% and 19.1% lower than most other carriers’ current rates. With all the TranSaver carriers offering you competitive discounts (for prepaid outbound shipments, the average discount is 58% interstate and 56% intrastate) off the same base rates, it’s a simple matter to compare their pricing. In addition, most TranSaver carriers have agreed to waive certain accessorial charges: “Single Shipment” and “Notification Before Delivery” for example; apply their discount to shipments like freight prepaid C.O.D.’s which aren’t normally discounted, and freeze their rules governing extra charges at the date they entered our program. Many shippers find they can recover TranSaver’s modest monthly participation fees after only one or two shipments. Both shippers and carriers agree that CT TranSaver is a tough program to beat, and the beauty of it is that you can use TranSaver to control both outbound and inbound freight costs.
The CT TranSaver Program is an uncomplicated, easy-to-use freight savings program that can yield significant freight savings to shippers and significant freight volumes at compensatory prices to carriers. It relies on shippers and carriers interacting in good faith, but on the rare occasions where the parties find themselves at odds, we’re here to help put matters back on an even keel. And if shippers or carriers have questions about our program, they can call the TranSaver Coordinator, Teresa Grivna, at (216) 267-2000, Extension 2124 for expert answers and no-nonsense advice.
We try to visit each of our CT TranSaver customers to meet with their personnel, explain the program to them, and keep ourselves abreast of new products and developments, but there simply isn’t enough time to get out in the field as often as we would like. So we extend shippers an invitation to visit us to meet our people, see how we do what we do, and discuss our mutual interests.
Bankruptcies: Because of our contracted agreements with the carriers, our CT TranSaver program has never been successfully challenged by a bankrupt carrier.