TORONTO, Ont. — Markel Insurance Company of Canada announced the launch of Markel FUELogic.
The first product of its kind in Canada, Markel FUELogic provides trucking operators the confidence that their businesses are protected from the effects of unpredictable fuel price increases.
"The recent high volatility in diesel prices poses cash flow challenges for carriers of any size. In fact, large increases in fuel prices has been a primary cause for recent consolidation and bankruptcies among Canadian owner/operators and small fleets," says Mark Ram, president and CEO of Markel. "Markel FUELogic was developed to eliminate that volatility. In essence, a participating carrier can now operate with the peace of mind that unpredictable increases in fuel prices will no longer be a threat to their business."
Markel FUELogic provides carriers with the opportunity to lock in the maximum price they choose to pay for fuel. Should market prices for fuel exceed the level chosen by the carrier, the program reimburses the difference back to that carrier. If fuel market prices fall below the pre-determined level, the carrier automatically benefits from those lower prices.
The program offers three pre-determined price points, thus providing options that best fit a carrier’s unique budget, consumption patterns and financial needs.
Under this program, no special record keeping is required by the carrier, as all reimbursements are calculated within the program and refunds are issued automatically on a monthly basis. Furthermore, participants of the program have no requirement to change any aspect of their current fuel consumption patterns, including amounts purchased or fuel suppliers used.
This innovative program is available exclusively to Markel policyholders.
"Truckers are sensitive about having to issue fuel surcharges to their customers when fuel prices rise dramatically and unexpectedly," adds Ram. "Markel FUELogic gives carriers the ability to strengthen their relationship with shippers – and therefore strengthen their competitive advantage – by being able to predict their maximum fuel costs. This program offers a new and innovative solution to the Canadian trucking industry, and we are confident that our participating policyholders will gain significant advantages from it."
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News