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Q: How are rates for accessorial (additional) services determined?
A: To incorporate revenues from accessorial services into the linehaul transportation
rates as accurately as possible, the cost adjustments are based on statistics derived
from more than 800,000 actual shipments.
Cost factors were developed for each of more than 200 specific service areas.
Cost factors were further refined to include labor costs and expense data, various
government indices, labor costs and industry operating costs. Linehaul charges,
which are based on the three-digit ZIP codes of the origin and destination service
area, more accurately reflect the actual costs associated with the move.
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Q: The elimination and incorporation of complex accessorial items sound great from
the customer’s perspective, but what about from the business perspective of the
van operator or agent?
A: For the benefit of drivers and agents, revenues from accessorial services
were not eliminated. Rather, they were accurately and fairly incorporated into the
origin and destination service charges. Additional factors were built in where service
areas represent a more substantial component of revenue, e.g. Chicago, New York
and Boston.
In situations where a driver receives all or a majority of revenue from accessorial
services, fair compensation is achieved through the revenue distribution system.
All van lines and carriers, including Atlas, restructured their revenue distribution
systems to ensure that drivers and agents are fairly and adequately compensated
for the accessorial services rendered.
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Q: How is the driver compensated for services performed under Tariff 400-N?
A: Driver compensation under Tariff 400-N is almost exactly like the old
method. To ensure adequate revenue to service providers, revenues associated with
direct pickup or delivery are paid to the party performing the service—just as revenue
was distributed under Tariff 400-M. Similarly, line haul distribution is shared
by the booker, hauler, and van line.
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