Fuel surcharge discount rules in carrier agreements

The purpose of this article is to guide you through the function and components of Fuel Surcharge Discount rules in carrier agreements. This information is intended for any system user with a PDF agreement that needs to be loaded into the Agreement Management System.

Organization of rules

Rules are ordered by class type as follows:

Dim Divisor icon 32px svg Dim Divisor rules

Earner discount icon 32px svg Earned Discount rules

Fuel surcharge discount icon 32px svg Fuel Surcharge Discount rules

Grace period discount icon 32px svg Grace Period Discount rules

Minimum net charge icon 32px svg Minimum Net Charge rules

Multipiece minimum weight qualifier icon 32px svg Multipiece Minimum Weight Qualifier rules

Service discount by region icon 32px svg Service Discount by Region rules

Service discount icon 32px svg Service Discount rules

Service net rate icon 32px svgService Net Rate rules

Surcharge net rate icon 32px svgSurcharge Net Rate rules

Surcharge discount icon 32px svg Surcharge Discount rules

It’s important to note that rules are executed from top to bottom according to the position of the rule among all other agreement rules. In other words, rules at the bottom are executed after the rules above and can overwrite the rules where overlap exists.

Fuel surcharge discount rules

The Fuel Surcharge Discount rule calculates the discounts on Fuel Surcharges. Fuel surcharge discounts are common in large volume shipping agreements.

Effective Start Date

Pertinent for expiration terms on Fuel Surcharge Discounts.

Default: Null

Format: mm/dd/yyyy

Common mistake: Effective Start Date is entered on a date that is after the analysis period date range within CAO View. Ensure that the Effective Start Date does not affect the Fuel Surcharge Discount being applied to the date range of analysis.

Pro tip: Create one Fuel Surcharge Discount rule for each term within the agreement. The Effective Start Date and Effective Stop date fields build each rule for the targeted date range.

Effective Stop Date

Relevant for expiration terms on Fuel Surcharge Discounts.

Default: Null

Format: mm/dd/yyyy

Common mistake: Effective Start Date is entered on a date that is after the analysis period date range within CAO View. Ensure that the Effective Start Date does not affect the service discount being applied to the date range of analysis.

Pro tip: Create one Fuel Surcharge Discount rule for each term within the agreement. The Effective Start Date and Effective Stop date fields build each rule for the targeted date range.

Service

Select the Service targeted by the Fuel Surcharge Discount rule.

Note: Services and Service Type Groupings are carrier specific.

Directions

Overview: Domestic service types are controlled as a single rule on Fuel Surcharge Discounts. Fuel Surcharge Discounts on international shipments, in contrast, are managed as separate rules by direction: Export and Import.

Default: All enabled by default

Options:

  • Import
  • Export
  • Domestic

Discounts

Fuel Surcharge Discount of percentage discount off the list rate of the surcharge or accessorial charge.

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