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Trucker Adds Charge for Refrigeration Costs

June 19, 2008

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Dallas-based Frozen Food Express Industries, Inc. and FFE Transportation Services, nationwide providers of refrigerated transportation, said it will implement a charge to its shippers for the rapidly rising cost of refrigeration necessary in the transportation of temperature controlled products. It expects the charge will be fully implemented by the middle of this year’s third quarter.

“Our customers count on us to keep their products pristine in a temperature controlled environment. Our ability to do that depends on the use of diesel-powered refrigeration units. The cost to operate those units is tied directly to the ever-increasing price of fuel. So far this year, the per-gallon price of diesel is up more than 40%. Until now, we have held the line and not passed on this increasing cost, as we are sensitive to our customers’ needs. That has been quite a struggle, and we have reached the point where it is not financially feasible to continue to bear the brunt of this brutal fuel environment without some relief,” said John Hickerson, senior vp and chief marketing officer. “We have reached out to our customers for input on this tough situation and our shipping partners have been mostly understanding about the necessity for FFEX to offset the climbing cost for refrigerating their products,” he added.

“Previously, we have reported a variety of initiatives to hold the expense of fuel costs in check,” noted Russell Stubbs, senior vp and COO. “We have turned our trucks' speeds down; we are spending more on fuel efficient tractors and better insulated trailers. We have taken many steps to reduce tractor idling time. All of those have been effective, and we will continue to do everything possible to hold shipping costs at affordable levels while supplying the quality service for which FFEX is known. This is all about customer service and we must offset some of the increasing cost related to providing the service our customers expect and deserve. Our goals have not changed, and we will still be standing after any shake out that many expect in the economy. Our efforts to cut costs and enhance revenue remain intact and on-target. This will be an enterprise wide program adopted by the fleets at all FFEX brands.”

 

Frozen Food Express Industries, Inc. is a publicly owned motor carrier specializing in core offerings of temperature-controlled transport of products and perishable goods including food products, health care supplies and confectionery items. It offers nationwide service in both over-the-road and intermodal modes of temperature-controlled truckload and LTL freight, as well as dry truckload freight. It also offers services in brokerage, logistics, and dedicated hauling. Additional information can be found at www.ffex.net.




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