CzarLite and MARS: Two LTL pricing alternatives
Ray Bohman -- Logistics Management, 8/1/2001
As you well know, just about every LTL carrier in the country has developed its own individual scale of class rates, and some carriers have more than one. But that doesn't necessarily mean that if you're dealing with a particular carrier, you're locked into using its individually established rates. There are alternatives—namely, nationwide rating systems that have been developed by regional motor carrier rate bureaus.
The two systems most widely used today are "CzarLite," created by SMC3 (formerly called the Southern Motor Carriers Rate Conference), and the Middlewest Motor Freight Bureau's MARS 500. These two rate scales closely mirror rate bureau rates in every region of the country and have been developed to provide a standard, uniform benchmark level of rates without any carrier-specific adjustments, which can be difficult and costly to find.
Many shippers that use multiple LTL carriers find these base rate scales to be extremely useful in rate negotiations, particularly when annual contracts are open for bidding. With these systems, every carrier is bidding off the same rate scale.
The systems themselves are readily available. If a shipper wishes to have its LTL carriers use CzarLite or MARS pricing for their base rates, it simply secures a license from SMC3 or the MWMFB and then incorporates those systems into any contracts it negotiates. (Carriers themselves do not become party to CzarLite or MARS rates as they do when using bureau class rates.)
And the rates themselves are fair and reasonable. In using ABM Transportation Services' "RateShopper" software, which compares LTL rates of multiple carriers on any given lane, I've seen numerous instances in which CzarLite and MARS rates are lower than rates maintained by any of the individual carriers. (For more information about RateShopper, log onto ABM's Web site: www.abmrate.com.)
Neither CzarLite nor MARS is limited to rates between points in the continental United States. In addition to their domestic systems, both bureaus offer rating systems between all points in the continental United States and all points in Canada. SMC3 calls its service CanadaLite, and the MWMFB's is named MARS 510.
How popular are these systems? SMC3 says that "independent analysis has [shown] that CzarLite is used annually as the base for over $8 billion in LTL transportation [contracts] ."
Both products are available to shippers through a license arrangement. CzarLite's annual fee is based upon a shipper's annual sales revenue, while access to MARS is available for a flat fee, regardless of sales.
For more information about CzarLite, log onto the SMC3's Web site (http://www.smcsystems.com/) or call (800) 845-8090. The address is SMC3, 500 Westpark Drive, Suite 300, P.O. Box 2040, Peachtree City, GA 30269.
If you'd like more information about MARS, visit the MWMFB's Web site (www.middlewest.com) or call (800) 545-7091. The address is MWMFB, 4528 Belleview Ave., Suite 100, Kansas City, MO 64111-3566.
| Author Information |
| Ray Bohman, a well-known consultant and author. is editor of several highly successful newsletters on transportation and is a consultant to a number of national trade associations. He is president of The Bohman Group, consultants and publishers in the freight-transportation field. His offices are located at 27 Bay Lane, Chatham, MA 02633. Phone: (508) 945-2272. |





















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