Prime L/O and tolls

Same split as the revenue 28% paid by the company, 72% paid by the operator. Its a cost of doing business. It also keeps me off of the Indiana-Ohio-Pennsylvania highway robbery road.

 

It's a separate bill you pay to EzPass - the NY State electronic toll outfit. Otherwise you pay your tolls out of pocket, submit the receipts for reimbursement of the company's share.

 

When it is a separate charge on the freight bill, which is rare, we do get it all then. I had a pharm load last week that paid for the FL. turnpike toll on the freight bill.

 

You're talking about apples, and thinking about oranges.

Tolls are a tax levied on us by local authorities - as a lease operator, your routing is up to you. As such its up to you whether you want to pay to travel on a given road. The only time we have tolls included as part of the rate structure is when there is an overriding concern by the shipper that we use a specific route. Those are high value loads almost exclusively. As olphart indicated, they are passed on to us at a rate of 100%.

Since your routing in most cases is up to you, tolls become a cost of doing business. Be happy that Prime takes the position that they will take part of the hit on them. There are many carriers who won't reimburse their company drivers for any tolls, and others that pay 100% to their 1099 contractors. Personally, to me it just means that I'm going to look at the actual value received from routing over a tolled route compared to non-tolled routes.

Fuel surcharge is a pricing mechanism employed to make the establishment of long-term freight contracts equitable to all parties concerned in the face of highly volitile fuel prices.