FedEx Freight launches Space and Pace pilot

Through ยท

FedEx Freight is launching a first-of-its-kind space and pace pricing pilot, using measure-based pricing for LTL, for select customers.

As part of this pilot, FedEx Freight will create simple quotes based on the space and speed customers need to move cargo. Customers provide the weight, dimensions, origin zip code and destination zip code of their shipments to receive a quote. Once FedEx Freight receives the shipment, Dimension-in-Motion (DIM) technology is used to verify the shipment’s weight and dimensions.

This process simplifies the pricing structure by eliminating the need for complex freight classifications under the National Motor Freight Classification (NMFC) pricing system. There is no longer a need to classify cargo as pricing is tied to the space and speed the customer needs to transport the cargo. Simple fares coupled with straightforward billing and the elimination of class-based surcharges help ensure pricing accuracy for customers.

“Using the simplicity of Space and Pace pricing, we aim to build trust with our customers by ensuring they receive accurate pricing on the frontend to reduce the frequency of pricing adjustments and disputes on the backend,” said Mike Lyons, vice president of LTL revenue quality .

The aim is to offer this price structure as an exciting option for customers after a successful pilot.

November 2, 2022

Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Do not miss!
Get in-depth coverage from industry experts with proven techniques to reduce supply chain costs and case studies on supply chain best practices.
Start your subscription today!

Leave a Comment