Mobility—Grateful for small mercies with low fuel costs
This is a difficult time for all, and the crashing oil prices are but one of our country’s concerns. While low oil prices will never be good news for our oil and gas friends in Alberta and elsewhere, there are some financial upsides for other organizations, especially those who purchase transportation services. This applies to employers with mobility programs as shipping furniture, vehicles and even the cost of packing depends heavily on the price of fuel.
It would not be unusual for last summer’s fuel surcharges to range from $200 (5,000 lb. travelling 1,000 miles) to upwards of $1,000 (20,000 lb. travelling 3,000 miles), so they make up a significant portion of final moving costs. Using current prices would have resulted in negligible surcharge fees or even a credit adjustment (refund).
Although most moving tariff schedules contain a fuel surcharge table adjusting costs based on fuel price increases, many we have seen do not reduce the cost when fuel prices fall to current levels as these discounted prices were never expected. Clients who have used our services to issue RFPs for transportation of household goods or to negotiate moving tariffs already benefit from a two-way fuel surcharge arrangement. You too can benefit from reduced costs provided your tariff schedule or contract can be amended.
If you are interested in re-evaluating your moving contract or are purchasing moving services through a relocation supplier, we would be pleased to review your agreement and advise accordingly. By modifying your contract with suppliers, we can help enhance value and reduce the costs of your mobility program.