Transport & Logistics Companies Fixed & Floating Charges

Hi all,

Im a newbie here and looking for some advice in regards to fixed and floating charges in the context of companies dealing with transport and logistics. The concept of fixed and floating charges is very new to me and still trying to understand the basics i.e advantages and disadvantages of each let alone relating those to the transport and logistics industry.
Any help and advice would be greatly appreciated.

Thank you.

 

disclosure ,
it has been several decades since i regularly worked in a warehouse/distribution centre ,

so the viewpoint might be outdated .

...anyway

a distribution centre used both methods

the local deliveries ( Greater Brisbane area ) was paid at a set $x per item rate ( 1kg or 1 tonne ) same price .

the deliveries for intercity/interstate went with a ( then ) well known company ( could be still part of BXB )

they had a sent fee per year $xxxxx , straight to rail , international trucking depot or airport , ( ring early if you need more than one truck for the consignment , or seperate consignments on the same day )

outcome ( hopefully unique )

the local guy , was appalling managing a 33% success rate ( by item count )

the big company rarely had a problem , sure they cost a bundle , but the time saved NOT on the phone , left me adequate time to prepare orders for the next days deliveries ( or misadventures depending on the contractor ).

and epic misadventures some were ( one took 3 days to sort out 150 identical packages going to the same address ... what could go wrong ??? ... [SOB!! } )