Practical Handbook of Transportation Contracting and Rate Negotiations

In the time-worn traditions of the transportation industry, ship pers and carriers regard one another as enemies. There is, to be sure, a certain degree of validity to such a viewpoint. An element of conflict will naturally be present in any vendor-purchaser relationship. The two, after all, are seeking distinctly different things from that relationship; and to a con siderable extent each party's success in realizing its own goals must be achieved at the expense of the other. At the same time, however, viewing that relationship as strictly zero-sum-a gain by one side always resulting in an equal and offsetting loss by the other-is a gross misconception. It overlooks the key reality that, no matter which party comes closest to its own objectives, the relationship, and the business transactions that flow from it, must ultimately benefit both. Without that level of mutual benefit the relationship will simply not exist (or will soon founder if it somehow does come into being); for it is only the self-interest of the two parties that impels them to establish and continue that relationship at all. In transportation, however, this element of mutuality-the attitude that the parties share a common interest in nurturing their relationship-is often forgotten. Instead of working to gether as, fundamentally, partners in a business transaction from which both expect to derive gains, they dedicate the bulk of their energies to fighting, rather than cooperating, with one another.

Klappentext

In the time-worn traditions of the transportation industry, ship­ pers and carriers regard one another as enemies. There is, to be sure, a certain degree of validity to such a viewpoint. An element of conflict will naturally be present in any vendor-purchaser relationship. The two, after all, are seeking distinctly different things from that relationship; and to a con­ siderable extent each party's success in realizing its own goals must be achieved at the expense of the other. At the same time, however, viewing that relationship as strictly zero-sum-a gain by one side always resulting in an equal and offsetting loss by the other-is a gross misconception. It overlooks the key reality that, no matter which party comes closest to its own objectives, the relationship, and the business transactions that flow from it, must ultimately benefit both. Without that level of mutual benefit the relationship will simply not exist (or will soon founder if it somehow does come into being); for it is only the self-interest of the two parties that impels them to establish and continue that relationship at all. In transportation, however, this element of mutuality-the attitude that the parties share a common interest in nurturing their relationship-is often forgotten. Instead of working to­ gether as, fundamentally, partners in a business transaction from which both expect to derive gains, they dedicate the bulk of their energies to fighting, rather than cooperating, with one another.

Inhalt

1. Introduction.- 2. The Variegated, Ever-Changing Transportation Marketplace.- Railroads.- Motor Carriers.- Household Goods Movers.- Brokers.- Shipper Associations.- Airlines.- Domestic Water Carriers.- Freight Forwarders.- Pipelines.- Intermodal Transportation.- Private Carriage.- 3. Regulation and Rates Today.- Common-Carrier Tariffs.- Reduced Protections for Shippers.- Rate Bureaus.- 4. Marketing Strategies for Carriers.- A Need for Rational Planning.- Pricing Strategies and Approaches.- The Tactics of Marketing.- The Special Case of Loss-and-Damage Liability.- The Art of Transportation Salesmanship.- 5. Buying Transportation Service: The Shipper's View.- Characteristics of the Traffic.- The Rate and Service Package.- The Question of Pricing.- The Carrot, the Stick and Other Matters.- Common Pitfalls to Avoid.- Researching the Other Side.- The Special Case of Captive Traffic.- 6. Computers and Strategic Planning.- 7. The Art of Negotiating.- When, Where and Who.- The Initial Proposal(s).- The Conduct of Negotiations.- Boulwarism.- Finalizing the Agreement.- Two Winners, No Losers.- Appendix: Negotiations in Transportation.- 8. Contracting for Carriers and Shippers.- The Element of Mutuality.- Transportation Contracts and the Law.- Contract Negotiation Strategies.- Key Features of Transportation Contracts.- The Ethics of Contracting.- The Negotiating Process.- Contract Administration.- Appendix: Contract for Carriage.- 9. The Many Facets of Competitive Bidding.- The Request for Proposal.- The Specifications.- Traffic Volume.- The Bid Element(s).- Bid Format.- The Basis of Evaluation.- The Deadline.- Responding to the RFP.- Legal and Ethical Considerations.- The Future of Competitive Bidding.- 10. Antitrust Law and Rate Negotiations.- SomeRecent Cases.- Other Facets of Antitrust Law.