Fuel surcharges

Freight Broker

Well-Known Member
30
Regularly get fuel surcharges that are way out of wack, especially for shorthauls. Or perhaps I'm out of touch with how much fuel costs. Was quoted $2000.00 today plus $728 for fuel on a 288 mile haul.. so that works out to $728/288 which is $2.53/mile... and that's just the surcharge! No wonder some shippers are calling out the industry on fuel surcharges. I've gone back to quoting all in rates.. good for 90 days... that's how we did it in the old days. Shippers like it because they know what they're getting..its just one number.. makes it easier for them too.
 

loaders

Site Supporter
30
100% agree. An all in number that everyone can agree to is the way to go. Let’s face it, diesel fuel prices haven’t experienced wild fluctuations in years, remaining relatively stable. Calculating your base rate on fuel prices that are 10, 15 or even 20 years old and then bringing them “up to date” with exorbitant fuel surcharges is madness. In addition, most late model tractors today achieve much higher fuel efficiencies than a decade or more ago. If there is a world wide catastrophe that impacts crude oil prices dramatically, don’t worry, everyone will know about it and carriers and shippers alike will have to re-examine pricing. It is time to bring everyone into the 21st century.
 

TransAction

Well-Known Member
20
Regularly get fuel surcharges that are way out of wack, especially for shorthauls. Or perhaps I'm out of touch with how much fuel costs. Was quoted $2000.00 today plus $728 for fuel on a 288 mile haul.. so that works out to $728/288 which is $2.53/mile... and that's just the surcharge! No wonder some shippers are calling out the industry on fuel surcharges. I've gone back to quoting all in rates.. good for 90 days... that's how we did it in the old days. Shippers like it because they know what they're getting..its just one number.. makes it easier for them too.
We do all in rates but expire at 30 days, that these days is risky... 90 days is like having 9 lives Mr. Cat ....
 

Michael Ludwig

Well-Known Member
20
@Freight Broker ... sounds like you're getting rates from people that don't actually know how to calculate rates plus fuel surcharges.

To properly rate a lane, plus FSC, the calculation needs to have the price of fuel at the base rate of the FSC matrix, not the current fuel price plus the FSC !!!

Also outdated is the FCA FSC matrix that advocates a percentage factor of transportation rate instead of a cost per mile or kilometer. With the advent of new fuel saving technologies, the percentage of cost that fuel represents has declined dramatically over the past few years.
 
Top