7_Transportation
TRANSPORTATION SURCHARGES
2020.04.11
PRL Co imposes a transportation surcharge that is comprised of one variable and one fixed component. The total transportation surcharge percentage will be modified, as needed, each month on the first billing day of the month based on the following inputs.
The variable component of the transportation surcharge is based on the U.S. National Average On-Highway Diesel Fuel Prices (Monthly) reported by the U.S. Department of Energy, not on PRL Co’s actual fuel expenses. The rate used will be two months prior to the adjustment; for example, the surcharge for July 2018 is based on the May 2018 Monthly Average. U.S. National Average On-Highway Diesel Fuel Prices can be found at www.eia.gov.
The following table illustrates the variable component schedule:
|
At least: |
But Less Than: |
Surcharge: |
Minimum: |
|
$1.66 |
$1.78 |
0.50% |
$0.50 |
|
$1.78 |
$1.90 |
1.00% |
$1.00 |
|
$1.90 |
$2.02 |
1.50% |
$1.50 |
|
$2.02 |
$2.14 |
2.00% |
$2.00 |
|
$2.14 |
$2.26 |
2.50% |
$2.50 |
|
$2.26 |
$2.38 |
3.00% |
$3.00 |
|
$2.38 |
$2.50 |
3.50% |
$3.50 |
|
$2.50 |
$2.62 |
4.00% |
$4.00 |
|
$2.62 |
$2.74 |
4.50% |
$4.50 |
|
$2.74 |
$2.86 |
5.00% |
$5.00 |
|
$2.86 |
$2.98 |
5.50% |
$5.50 |
|
$2.98 |
$3.10 |
6.00% |
$6.00 |
|
$3.10 |
$3.22 |
6.50% |
$6.50 |
|
$3.22 |
$3.34 |
7.00% |
$7.00 |
|
$3.34 |
$3.46 |
7.50% |
$7.50 |
|
$3.46 |
$3.58 |
8.00% |
$8.00 |
|
$3.58 |
$3.70 |
8.50% |
$8.50 |
|
$3.70 |
$3.82 |
9.00% |
$9.00 |
|
$3.82 |
$3.94 |
9.50% |
$9.50 |
|
$3.94 |
$4.06 |
10.00% |
$10.00 |
|
$4.06 |
$4.18 |
10.50% |
$10.50 |
|
$4.18 |
$4.30 |
11.00% |
$11.00 |
|
$4.30 |
$4.42 |
11.50% |
$11.50 |
|
$4.42 |
$4.54 |
12.00% |
$12.00 |
|
$4.54 |
$4.66 |
12.50% |
$12.50 |
|
$4.66 |
$4.78 |
13.00% |
$13.00 |
|
$4.78 |
$4.90 |
13.50% |
$13.50 |
|
$4.90 |
$5.02 |
14.00% |
$14.00 |
|
|
$5.02 |
14.50% |
$14.50 |
The fixed component of the transportation surcharge is intended to defray rising delivery vehicle costs, including, but not limited to vehicle standing costs, running costs, depreciation, Tier 4 compliance, etc. Currently, this fixed component will be 9% or a minimum of $9.00 until further notice.
As explained above, the total transportation surcharge percentage is based on the combination of the variable and fixed components. The applicable transportation surcharge percentage is then multiplied by the transportation rates (e.g., delivery and pickup charges) set forth in the contract. Transportation surcharge percentages and thresholds are subject to change without prior notice. If there are changes to the thresholds, the above information will be updated.
PRL Co offers transportation services to its customers through knowledgeable professionals via a fleet of trucks and trailers that provide timely delivery of the wide variety of rental equipment that PRL Co offers. This transportation surcharge is added to each transportation charge, for the transportation services requested by the customer. The transportation surcharge is NOT a government mandated tax or fee. The transportation surcharge is our charge intended to defray a wide range of transportation expenses (both direct and indirect), which are not always fully recovered by other transportation charges. While the transportation surcharge is intended to defray these expenses, it is not specifically designed to recover an exact percentage of the costs attributable to any particular transaction. This transportation surcharge is not placed in an escrow account, it becomes part of PRL Co’ revenue and is used at our discretion.
Surcharge Calculation Example:
May 2018 average Diesel fuel price of $3.25 makes the variable component of the surcharge 7.0%. Combine this with the fixed component of 9% and the total surcharge on the invoice will be 16.0%.