The Freight Shrunk

ISSUE

You thought your shipment would be a certain size and weight, and we all planned on that. But now the shipment is smaller, or lighter, or both.

ACTION

1. Let us know as soon as you know.
2. One of three situations will apply:
   • We have not yet sourced a truck for the shipment:
     • We will prepare you a revised quotation (which, for small changes, may be the same as or very close to the original quotation) for your review and approval.
   • We have sourced a truck for your shipment, but it has not yet been dispatched:
     • We will advise the carrier, and ask if they wish to carry the smaller shipment.
       • If they want the smaller shipment, we will agree with the carrier on a revised cost, and we will provide you a revised quotation, for you review and approval.
       • If they do not want the smaller shipment at a reduced cost, they will give us back the shipment, and we will source a different truck.
   • We have sourced a truck for your shipment, and it has been dispatched to your pick-up (whether or not it has arrived):
     • We will advise the carrier.
     • Since the truck has already planned for your original shipment and is already moving toward, or has arrived at, your pick-up point, the truck will pick up your shipment.
     • However, the carrier has reserved the space for your shipment as originally planned, and has planned a the full revenue for the reserved space. The carrier may well be unlikely to have sufficient opportunity to find a new shipment of a size equal to the reduction in size of your original shipment, with which the carrier would be able to replace the any lost revenue associated with your “shrunken” shipment. For this reason, the carrier must continue to receive the revenue originally agreed to with Copper Run.
     • Therefore, Copper Run is unable to offer a price reduction from our original price quotation in this situation.
     • If the shipment is cancelled, the carrier will assess a “truck ordered – not used” fee.
3. Based on the circumstances and options described above, we will make the necessary arrangements on your behalf.

EXPLANATION

Typically, your customer decreased their order, or your production department was unexpectedly unable to fulfill the full order.

IMPACT & TYPICAL RESOLUTION

In most cases, there is no impact.

The freight goes on the truck initially sourced for the shipment, for the initially agreed price.