Fuel surcharge formula when "hauling by the ton"?

New to the business and submitting my first freight quote. Moving dry commodity (from a new start-operation) by hopper bottom trailer and must submit the quote per ton. Delivering 140 miles one way, returning empty. 2 loads/day x 5 days/week.

Shouldn't my quote address fuel prices? Suggestions?

 

Hey thanks for replying!

Because I am having to submit a proposal for transport services on this (and my first time experience) was thinking that since fuel seems to run about 40% of my formula (fixed cost + variable cost + profit = Total price) that I could try to get language (formula) in my contract that says, whatever change from this point forward in diesel fuel would translate into that % x 40% for the overall rate increase.

Example: My rate is $25/ton to haul these dry commodities. Lower mid-Atlantic fuel @ $3.80/gallon today. If in six months it is up to $4.18, then that's a $.38 or 10% increase. So 40% of 10% = a 4% overall rate increase. In this example, I would now get a $25 x 4% increase = $1 ...or new rate of $26/ton.

Maybe the contract would stipulate a frequency to review prices (monthly?) or maybe it would state whenever prices have moved a certain %, a rate adjustment will occur?

My background is in manufacturing, where we did this type of contract but am at a loss if this is reasonable or even possible in trucking industry. I will be an independent carrier operating under my own authority and dealing directly with the shipper, who is also the manufacturer of the product I will be transporting.

Thanks for any helpful comments!

 

Good advice...I like it.

Thanks!