ILMA Compoundings June 2017 - 23

Does multistop truckload save or cost you
money? Researchers weigh in.
In early 2016, a C.H. Robinson white
paper titled Do Higher Truckload Rates
Bring Better Carrier Performance? alluded
to a potential connection between HOS
and multistop truckload. That paper
explained that carriers may build in extra
time between the time of a required
pickup and delivery to account for
traffic, weather delays and equipment
breakdowns - and to maximize their
drivers' HOS. Some carriers chose to be
a little late at pickup because it enabled
them to more closely match the driver's
HOS and distance with delivery schedules to boost overall efficiency.
The paper on truckload rates
revealed something else: 80 percent
of multistop loads that picked up late
still delivered on time. But the more
stops there were, the worse the

on-time delivery percentage was if the
first load picked up late.
From the carrier's perspective, the
profitability of a multistop load can
depend on how flexible loading and
unloading times are on an individual
route, and on the delays that occur at
the first stops. Anecdotally, at least,
it seems possible that carriers would
reject multistop truckload tenders
more frequently than regular truckload
because of the complexity.

Multistop comes under the
microscope
Multistop pricing usually begins with
a base rate that is drawn from the
truckload pricing contract between a
carrier and shipper. In addition to this

line haul rate per mile, carriers add
charges to cover the increased dwell
time associated with extra stops, commonly referred to as a stop-off charge.
However, while truckload contracts
stipulate rates, they also allow carriers
to refuse loads.
So, in order to cover each lane they
serve, many shippers create a route
guide, contracting with multiple carriers
and ranking them, usually by cost and
service. When it's time to move a load,
the shipper tenders it to the first carrier
in the routing guide; if the first carrier
rejects the tender, it is offered to the second carrier. This continues until a carrier
accepts the tender. Typically, the further
into the route guide the shipper must go
before a carrier accepts the load tender,
the higher its costs will be.

23



ILMA Compoundings June 2017

Table of Contents for the Digital Edition of ILMA Compoundings June 2017

Letter From the President
Letter From the CEO
Inside ILMA
What's Coming Up
Industry Rundown
In the Know
International Insight
Market Report
Lubricant Manufacturers Heed New Safety Regulations
Finding a Balance
Making the Most of Your Data Management
Business Hub
Counsel Compound
Washington Landscape
In Network
Member Connections
Cross Connections
Portrait
ILMA Compoundings June 2017 - Cover1
ILMA Compoundings June 2017 - Cover2
ILMA Compoundings June 2017 - 1
ILMA Compoundings June 2017 - 2
ILMA Compoundings June 2017 - Letter From the President
ILMA Compoundings June 2017 - 4
ILMA Compoundings June 2017 - Letter From the CEO
ILMA Compoundings June 2017 - Inside ILMA
ILMA Compoundings June 2017 - 7
ILMA Compoundings June 2017 - What's Coming Up
ILMA Compoundings June 2017 - 9
ILMA Compoundings June 2017 - Industry Rundown
ILMA Compoundings June 2017 - In the Know
ILMA Compoundings June 2017 - International Insight
ILMA Compoundings June 2017 - 13
ILMA Compoundings June 2017 - Market Report
ILMA Compoundings June 2017 - 15
ILMA Compoundings June 2017 - Lubricant Manufacturers Heed New Safety Regulations
ILMA Compoundings June 2017 - 17
ILMA Compoundings June 2017 - 18
ILMA Compoundings June 2017 - 19
ILMA Compoundings June 2017 - 20
ILMA Compoundings June 2017 - 21
ILMA Compoundings June 2017 - Finding a Balance
ILMA Compoundings June 2017 - 23
ILMA Compoundings June 2017 - 24
ILMA Compoundings June 2017 - 25
ILMA Compoundings June 2017 - Making the Most of Your Data Management
ILMA Compoundings June 2017 - 27
ILMA Compoundings June 2017 - 28
ILMA Compoundings June 2017 - 29
ILMA Compoundings June 2017 - Business Hub
ILMA Compoundings June 2017 - 31
ILMA Compoundings June 2017 - Counsel Compound
ILMA Compoundings June 2017 - 33
ILMA Compoundings June 2017 - Washington Landscape
ILMA Compoundings June 2017 - 35
ILMA Compoundings June 2017 - 36
ILMA Compoundings June 2017 - 37
ILMA Compoundings June 2017 - Member Connections
ILMA Compoundings June 2017 - 39
ILMA Compoundings June 2017 - 40
ILMA Compoundings June 2017 - Cross Connections
ILMA Compoundings June 2017 - 42
ILMA Compoundings June 2017 - 43
ILMA Compoundings June 2017 - Portrait
ILMA Compoundings June 2017 - Cover3
ILMA Compoundings June 2017 - Cover4
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