Fuel Surcharge

Yeah, another FSC thread.

So I was talking this week with the terminal manager and he asked me if I wanted to take a load into the Northeast. Given the cost of fuel in that area I told him it wouldn't be my first choice. We got into a discussion about the rate for ICs and how it should be higher given the current rate of inflation, including increasing fuel cost. LOL, he didn't agree with my assessment.

He tried to reason that FSC is a sliding scale based on fuel cost, which I know. Apparently, terminal management just did the math two weeks ago and they determined that the average fuel cost for ICs was $1.51/Gal.

I always thought FSC was intended to average fuel cost across geographical regions. It DOES NOT account for rapid increases in the cost of fuel due to inflation or crazy government policy.

Am I incorrect?

 

So you're saying that fuel prices can rise at any rate and a FSC will always offset those rising costs?

 

I get a discount off advertised as long as I fill at Love's, the J or Pilot.

 

I think one of the points I'm trying to make is that if you always have to go to areas where fuel prices are higher than the national average, you don't benefit as much from the FSC.

Then there's the actual pre-tax cost of fuel which is a different matter.