Swift Transportation Chooses The Shipper Solution
Oklahoma City, OK—September 1, 2009 -- Simons Petroleum, Inc., a national marketer of petroleum products focused on providing comprehensive fuel and lubricant offerings, today announced that Swift Transportation Co., Inc. is using The Shipper Solution. The unique program is providing Swift with the ability to effectively manage fuel costs and enabling its customers to more accurately budget transportation expenses.
The stability provided by The Shipper Solution from Simons Petroleum resonates with many of our customers, especially in today's economy where thin margins do not allow them to absorb volatility in fuel costs,” said Brad Stewart, director of finance at Swift Transportation. “This solution provides a strategic means of proactively managing fuel costs and enhancing our business partner role with our customers. For our customers, it provides the ability to control budgets, remove fuel price volatility from their transportation costs, and better predict margins in a highly competitive business environment.”
Swift Transportation Co., Inc., a subsidiary of Swift Corporation, is a truckload carrier headquartered in Phoenix, Arizona. Swift Transportation Co. operates the largest fleet of truckload carrier equipment in the United States consisting of approximately 16,700 tractors and 49,300 trailers. Operating from 35 major terminals located strategically across the United States and Mexico, Swift provides strong, regional operations, an expanding intermodal division, and various specialty and dedicated services to its customers while focusing on safety and service through its 20,800 employees and independent contractors.
The Shipper Solution being utilized by Swift employs one of the two most common fuel surcharge strategies to remove fuel price volatility from transportation costs:
-- A Fixed Rate Fuel Surcharge provides a set price for an agreed upon period at an agreed upon volume. This rate does not change during the term, allowing for complete price certainty.
-- A Capped Rate Fuel Surcharge, offered at a premium, provides total upside protection as well as downside participation. Should prices fall, this allows for a reduced rate during the agreed upon period.
“The Shipper Solution provides a competitive advantage for carriers like Swift, especially when low freight demand is causing many shippers to shop more heavily based on price and engage in fuel surcharge renegotiations,” says Brad Simons, senior vice president of Simons Petroleum. “This customized strategy helps build or maintain shipper relationships, and meets the needs of shippers who are also facing competitive pressures by allowing them to more effectively manage their transportation budgets.”
About Simons
Simons Petroleum, Inc. is a national marketer of petroleum products, focused on providing a comprehensive fuel and lubricant offering to commercial and industrial industries. Hedging and financial management tools, proprietary fuel management applications, engineering and testing services and custom products differentiate Simons in the marketplace. Simons is an operating company of Maxum Petroleum, Inc., based in Greenwich, CT. Maxum is a leading independent energy logistics company that markets and distributes a comprehensive offering of refined petroleum products and services to commercial and industrial customers. For more information, visit www.simonspetroleum.com.
The stability provided by The Shipper Solution from Simons Petroleum resonates with many of our customers, especially in today's economy where thin margins do not allow them to absorb volatility in fuel costs,” said Brad Stewart, director of finance at Swift Transportation. “This solution provides a strategic means of proactively managing fuel costs and enhancing our business partner role with our customers. For our customers, it provides the ability to control budgets, remove fuel price volatility from their transportation costs, and better predict margins in a highly competitive business environment.”
Swift Transportation Co., Inc., a subsidiary of Swift Corporation, is a truckload carrier headquartered in Phoenix, Arizona. Swift Transportation Co. operates the largest fleet of truckload carrier equipment in the United States consisting of approximately 16,700 tractors and 49,300 trailers. Operating from 35 major terminals located strategically across the United States and Mexico, Swift provides strong, regional operations, an expanding intermodal division, and various specialty and dedicated services to its customers while focusing on safety and service through its 20,800 employees and independent contractors.
The Shipper Solution being utilized by Swift employs one of the two most common fuel surcharge strategies to remove fuel price volatility from transportation costs:
-- A Fixed Rate Fuel Surcharge provides a set price for an agreed upon period at an agreed upon volume. This rate does not change during the term, allowing for complete price certainty.
-- A Capped Rate Fuel Surcharge, offered at a premium, provides total upside protection as well as downside participation. Should prices fall, this allows for a reduced rate during the agreed upon period.
“The Shipper Solution provides a competitive advantage for carriers like Swift, especially when low freight demand is causing many shippers to shop more heavily based on price and engage in fuel surcharge renegotiations,” says Brad Simons, senior vice president of Simons Petroleum. “This customized strategy helps build or maintain shipper relationships, and meets the needs of shippers who are also facing competitive pressures by allowing them to more effectively manage their transportation budgets.”
About Simons
Simons Petroleum, Inc. is a national marketer of petroleum products, focused on providing a comprehensive fuel and lubricant offering to commercial and industrial industries. Hedging and financial management tools, proprietary fuel management applications, engineering and testing services and custom products differentiate Simons in the marketplace. Simons is an operating company of Maxum Petroleum, Inc., based in Greenwich, CT. Maxum is a leading independent energy logistics company that markets and distributes a comprehensive offering of refined petroleum products and services to commercial and industrial customers. For more information, visit www.simonspetroleum.com.