!Re: C-Time?
Congestion, on the other hand, is not the customer's fault. I can't see charging for it, when it can be avoided by rescheduling appointments.
Increased fuel costs are not the customers' fault but we charge for those in the form of a fuel surcharge. Tolls are not the customers' fault but we charge for those by building them into the per-mile rate quoted for the run. Detention may or may not be the customers' fault but we charge for it in the form of detention time.
You are correct that many rush hour delays could be easily avoided if the shippers and consignees scheduled loads to avoid them. In that regard, a C-time charge might be better named, better expelained to the customers and more uniformially charged if it was called a congestion surcharge. If such a charge existed, customers would indeed pay more attention to scheduling their pick-ups and deliveries to avoid rush hours.
Congestion charges exist now in the form of higher tolls charged during prime time.
London, England, has a congestion charge zone in which a fee is charged to most motor vehicles that are operating between 7 a.m. and 6 p.m. M-F. It is enforced by plate number recognition technology.
A congestion tax was once proposed for New York City (cars $8.00, trucks $21.00) but the measure failed. City taxes for congestion are designed as a money grab, first of all, and presented as an environmental and traffic reduction measure.
A congestion charge added by transportation companies is something different. It would compensate the drivers and equipment providers for the additional costs of operating in a congested environment, and, most importantly, for the value of the driver's time that is otherwise lost to congestion.
The devil is in the details and actually charging such a fee based on congestion may be difficult. A 20 percent price markup imposed as a Northeast regional surcharge may be easier to do.
In effect, Diane and I are doing it now, staying out of the region unless the loads pay enough. And by enough I do not mean a good rate per mile. I mean enough money to pay for all tolls and all time wasted in the area, on top of a good rate per mile.
For example, we don't even think of going into the New York City area for pick-ups and deliveries on loads that pay less than $5,000. And if we do go in, we don't let toll pay offset any other pay. Toll pay is a pass-through designed to protect our profit margin.
I had lots of time to think about this yesterday as we spent six hours (SIX HOURS!) creeping through East Coast rush hour traffic and the load paid only $1.80 per mile. It picked up in CT, took us through New York City, across the GW Bridge and eventually delivered early this morning in North Carolina.
We took that load at that rate because it met a directional-dispatch need. We need to be in Florida soon for HAZMAT training. With that in mind, it was a delight to receive this load offer that took us from CT to NC, but it totally sucked to creep along for six hours at $1.80 a mile.