This is not our agreement...

Why am I still surprised, that I can be surprised in the transportation industry?!   The rate addendum I received today certainly surprised me.  A bit because I didn't expect this breakdown and a bit because I marveled at the customer's "craftiness". 

I spent a few weeks working with a new customer.  We discussed all the basics such as loading/unloading requirements, equipment needs, turn time, billing practices and of course rate.  The phone conversations were captured in e-mail so all involved understood the requirements, including our agreed upon rate.  Thanks to COVID, it took a few weeks for the business to start.  Once I received the green light, I handed the information off to the Operations team.

Fast forward through a few more start up delays and the first load tender was received.  Thankfully, a wise Op's team member noticed the rate seemed different.  Our customer took the rate I quoted and broke it down into segments; Linehaul, On Time Delivery, On Time Pickup, Proof of Delivery, and Tracking.  He immediately forwarded the information to me for clarification.

Let this sink in, as a customer you engage in hours of negotiation and leg work to secure a vendor for your service.  Once you discuss the business and come to an agreement on all necessary fronts, you issue a "PO" for work.  But you use this point in the relationship to dictate how the price will be paid or justified.  In how many industries is this practiced? 

Needless to say, I did not sign this rate addendum.  I seriously re-considered this customer entirely.  In the end, they revised the rate agreement and we were able to proceed.  I would encourage every operations team to talk about these rating practices.  They continue because trucking companies sign on the dotted line.  We continue to chip away at our pricing due to causes far outside our control.  It's okay to walk away from these pricing schemes.  It's okay to call out customers for last minute pricing changes or penalties.   And, it's okay to talk about these practices.  Our industry needs to set the standard higher, for ourselves.