Wednesday, March 12, 2008

Fuel-Surcharges at an ALL TIME HIGH!!!

I wanted to reach out to you to let you know about something that is slipping under the radar at many companies and effecting your bottom line in a big way...FUEL-SURCHARGES ON FREIGHT BILLS!

Fuel has been skyrocketing every week for the last month. Yesterday, the Department of Energy announced that fuel is at an all time high at $3.81 a gallon (diesel national average). That means motor carriers will be charging 29% extra to your freight bills.

To give you an idea of how dramatic this increase is, on Febuary 18th, 2008 the National Diesel Index was at $3.39 a gallon. Now it is at $3.81. That is a .42 cent difference in three weeks.

To put this into dollar amounts, last year the average Fuel-Charge that you were paying hovered around 15%. That means, this new Fuel-Surcharge will be raising your freight expense by 14%. So if you spent $500K last year in freight, you will be spending $70,000 more if this fuel stays where it is at.

What Can You Do?

Any customer of LMI reading this already knows they have nothing to worry about. Because although their fuel-surcharge is going up a little bit because of this spike, they know it will not make that big of an impact in their bottom line. In fact, LMI's fuel has raised to 12.5% this week. This actually our ALL TIME HIGH fuel-surcharge. But when you compare it to 29% that is being thrust upon everyone else in America, our customers can rest easy.

In fact, LMI's "National Account" status with its carrier partners protects its customers from things like outragous fuel-surcharge spikes, mid-year rate increases and unforeseen accessorial charges.

With many financial guru's admitting that we are in a recession, with sales being down around the country, with consumers keeping their spending to a minimum and with the rising diesel prices, IT MAY BE TIME TO LOOK AT ONE OF YOUR BIGGEST COST CENTERS = FREIGHT.

LMI would be happy to offer a FREE Freight Cost Analysis to determine the savings to your company. In 2007, the average savings to companies who spent less than $1,000,000 in freight was over 22% savings.

For a FREE Freight Cost Analysis all we would need is copies of recent 30 day sample of recently paid freight invoices. Withen three weeks, we will be able to tell you how much savings will be available to your company immediately.

LMI's services are a non-contractual way to dramatically cut freight costs and streamline freight billing while improving delivery service to your customers.

Please feel free to contact me for your FREE Freight Cost Savings Analysis or to arrange a meeting at your earliest convenience today!

Sincerely yours,

George Muha
Regional Sales Manager
Logistics Management, Inc

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